WTO: India wants differential treatment to continue for developing nations

NEW DELHI: India pushed for continuing with the Special and Differential Treatment (S&DT) for developing countries at the World Trade Organization (WTO) even as countries sought expeditions and immediate resolution of the impasse in dispute resolution. “The need for all developing countries, including LDCs, to benefit from S&DT provisions in future trade agreements was emphasised in many interventions,” said commerce and industry minister Suresh Prabhu in his concluding remarks as chair of the informal WTO ministerial gathering on Tuesday.

Fifty three countries participated in the meeting — the largest mini ministerial of all times — taking place in the wake of collapsed talks at the ministerial conference in December and rising protectionism.

Many countries suggested that developing countries opt out of the S&DT and adopt a case by case approach to the provision.


“India and South Africa opposed the suggestion as per which every country will have to establish why need the special dispensation and all other countries would then approve of this,” said an official.

The discussion has continued from the previous ministerial conference in Buenos Aires when many countries including the US have questioned India, China and Brazil for “claiming” developing country status. “S&DT, dispute settlement and the US’ unilateral actions were the three areas of discussion,” the official added.

US’ UNILATERAL ACTIONS
Almost all countries sought expeditions and immediate resolution of the impasse in the appointment of Appellate Body members, an issue that was viewed to be adversely affecting the credibility and functioning of the WTO.

“Deep concern was expressed at the serious threat posed to the credibility of the WTO rules and some of its cardinal principles such as non-discrimination, by the cycle of recent unilateral trade measures and proposed counter measures,” Prabhu said in his concluding remarks.

The US has been stalling the appointment of judges in the organisation, disabling the dispute settlement process. “I haven’t heard the US say it wants to walk out. They think the world has changed and WTO needs to update.. we don’t know but we have started talking now,” said WTO director general Roberto Azevedo after the two-day ministerial.

Concerned over the US’ move to hike import duties on aluminum and steel, he said such trade restrictive measures have a “real potential” for escalation as other countries could retaliate even as India said it would take up the matter bilaterally with the US.

“Many countries are saying we have a concern with it, there is potential for escalation and we have to proceed very carefully and try to work within WTO framework,” said Azevedo. The issue, he said, should be resolved within the multilateral framework to avoid a very disruptive and unpredictable scenario in global trade.

“India will bilaterally discuss import curbs on steel with the US,” said Prabhu, adding that unilateral measures harm everyone.