'We have to address the SSM issue'
WTO director general Pascal Lamy’s marathon running skills seem to be coming to his aid in the ongoing Doha round of trade negotiations, which is in its seventh year.
By Amiti Sen, ET Bureau |
| Pascal Lamy, director general, WTO |
How serious are the implications of the failure of the mini-ministerial on the future of the Doha round?
There were about 20 issues on the agenda at the ministerial, which included not just agriculture and Nama, but also services and intellectual property. We successfully dealt with the first 17 items. At number 18, we bumped almost unexpectedly on the Special Safeguard Mechanism (SSM) issue which nobody, including myself, expected it to be so contentious. Why did SSM become so contentious is what we have to work on now. We want to see whether it is a technical problem like the parameters for triggering SSM or is it something more fundamental like what SSM is actually about. That is what I am trying to put on the table in discussing both with Kamal (Nath) and Susan (Schwab). The question is now whether we can cross this bit, which we did not cross when we hit SSM. Whether it is doable or not, I don���t know. They all (members) say, they want to try. I have to assess whether they are serious about this.
Had the talks not got stuck on SSMs, do you think the next two issues of cotton subsidies and intellectual property would have affected the talks?
Cotton subsidies is related to the product specific caps for trade distorting subsidies in the US. We still have a small technical issue there related to what the product specific cap will be in both amber box and blue box. Once we get there, we would know the benchmark for doing more in cotton subsidies. On the Trips issue, ambassador Store had facilitated a number of discussions during that week. We did not get there. I think everybody agrees the SSM issue is the one that we have to address.
Some countries seem to be blaming India for the failure in Geneva. Do you think India played a key role in the collapse of the talks?
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I am not in the blame game. By the way, there has been very little blame game as compared to what could be expected after such tense moments. In SSM, the two extreme positions are exemplified by India on the one side and the US on the other side. But India is not alone in holding the view that SSM should not be too straight-jacketed. On the other hand, there are other countries, notably big agro exporters, who share the US position. That���s politics. It happens that two differences are best exemplified by US position on the one hand and Indian on the other. That is why my intuition is that if the US and India could find some sort of agreement on this, it would be easier for others to join the convergence. Is there a possibility of another ministerial later this year?
Frankly speaking, I don���t know. It only makes sense to have ministers in Geneva if the odds that it is going to work is higher than the odds that it is not going to work. If the key ministers agree, it could be done. I am here to try and help. I am not the one who makes decisions.
In Nama too, there are controversial issues like sectorals and anti-concentration clause, which the Indian industry is stressing on. Could they be equally formidable as the ones in agriculture?
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Had we crossed the hurdle on SSMs and then cotton and then Trips, 20 pieces of the bridge would have probably fallen in place. But as long as it is not settled, the view is that what is on the table will be implemented only when this is settled. This is understandable. Nobody disputes the single undertaking. So, what future path do you foresee for the Doha talks?
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I am not into the business of prediction. We bumped into an issue. We could not solve it. It is very disappointing. Next day, the reaction of the members could have been (enacts washing hands). But that was not the case. I think it was so because of the amount of what is on the table. Half the tariffs worldwide are evaporating: two-thirds in developed countries and one-thirds in developing countries. That is a reasonable description of what is on the table. And the members are not that keen on pulling the ladder because they see what is out there, including India.Download
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