Nine Reasons Why India's WTO Veto Shocked the World _ Reuters

822014 Nine reasons why Indias WTO veto shocked the world | Reuters

httpinreuterscomarticle20140801india-trade-wto-reasons-idINKBN0G13HY20140801 14

BY TOM MILES

GENEVA Fri Aug 1 2014 147pm IST

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Nine reasons why Indias WTO vetoshocked the world

(Reuters) - Indias tough diplomacy blocked a landmark world

trade treaty late on Thursday despite last-ditch talks to rescue

what would have been the first global trade reform since the

creation of the World Trade Organization 19 years ago

Trade diplomats in Geneva have said they are flabbergasted

astonished and dismayed and described Indias position as

hostage-taking and suicidal Here are nine reasons why they

say Indias stance made no sense

1 India has been a vocal backer of world trade reform It has

criticised the small clubs of countries led by the United States

and European Union that lost patience with the slow pace of

global reforms and started to discuss faster liberalising of trade in

certain areas such as services and information technology

products India is not in any of these groups But Thursdays veto

is likely to give them even more momentum as hope of a global

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trade pact long in doubt appears to be over

2 Indias veto may be the beginning of the end for the WTO

Trade experts say that if the WTOs 20-year-old rulebook does

not evolve more and more trade will be governed by new

regional agreements such as the Trans-Pacific Partnership which

will have their own rules and systems of resolving disputes That could lead to a fragmented

world of separate trade blocs

3 Indias new government was widely seen as being pro-business And yet it blocked a deal

on trade facilitation a worldwide streamlining of customs rules that would cut container

handling times guarantee standard procedures for getting goods to and from their

destinations and kill off vast amounts of paperwork at borders around the world Some

estimates said it would add $1 trillion to the world economy as well as 21 million jobs 18

million of them in developing countries

4 Nobody else was negotiating Thursdays meeting was simply supposed to formally adopt

the final trade negotiation text into the WTO rulebook following its agreement by ministers

at a meeting in Bali last December Indias then Trade Minister Anand Sharma hailed the

Bali deal as a landmark in the history of the WTO We were able to arrive at a balanced

outcome which secures our supreme national interest Sharma said at the time India did

not hint at any further objection until days before it wielded its veto and even then it made

no concrete demands until the WTO meeting to adopt the new rules was in progress

5 India did not object to the deal it vetoed Its objections were unconnected to trade

facilitation It blocked the trade facilitation deal to try to get what it wanted on something

else food security

6 India had already got what it wanted on food security At Bali it forced a big concession

from the United States and European Union which initially strongly opposed its demands

but agreed that India could stockpile food at subsidised prices reversing the trend of trying

to reduce and remove trade-distorting food subsidies globally The arrangement was

temporary but the WTO agreed to work towards a permanent solution within four years

by the end of 2017

7 Indias demands reversed its previous position India blocked the trade facilitation deal

because it wanted the WTO to move to a permanent solution more quickly than the four-

year timeline But diplomats say that India was offered a two-year timeframe before Bali

but it insisted on four

8 Indias veto could put it in legal danger As part of the Bali deal India won a pledge that

nobody would bring a trade dispute to challenge its food stockpiling programme which is

widely thought to have broken the WTO rules However diplomats say that Bali was a

package of 10 agreements and the only legally binding part was trade facilitation If that

fails the package unravels and India may lose its protection

9 India was isolated Cuba Venezuela and Bolivia voiced support but diplomats say other

big developing countries such as Russia China and Brazil as well as Indias neighbour

Pakistan were among the chief opponents of its veto Poorer countries stand to lose most

WTO chief Roberto Azevedo told the WTO meeting after the deal collapsed Theyrsquore the

ones with fewer options who are at risk of being left behind Theyrsquore the ones that may no

longer have a seat at the table

(Reporting by Tom Miles Editing by Clarence Fernandez)

ready to open up one of the worlds biggest

markets and sweep away the remnants of the

country s socialist past Fu ll A rt icle

India says WTO deal not dead can sign in Sept ifconcerns addressed

Nine reasons why Indias veto shocked the world

Disappointment uncertainty after deal blocked

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Gas explosions in Taiw an

Conflict in Gaza

raquo Click for more

slideshows

FILED UNDER TOP NEWS BUSINESS ECONOMY

trade pact long in doubt appears to be over

2 Indias veto may be the beginning of the end for the WTO

Trade experts say that if the WTOs 20-year-old rulebook does

not evolve more and more trade will be governed by new

regional agreements such as the Trans-Pacific Partnership which

will have their own rules and systems of resolving disputes That could lead to a fragmented

world of separate trade blocs

3 Indias new government was widely seen as being pro-business And yet it blocked a deal

on trade facilitation a worldwide streamlining of customs rules that would cut container

handling times guarantee standard procedures for getting goods to and from their

destinations and kill off vast amounts of paperwork at borders around the world Some

estimates said it would add $1 trillion to the world economy as well as 21 million jobs 18

million of them in developing countries

4 Nobody else was negotiating Thursdays meeting was simply supposed to formally adopt

the final trade negotiation text into the WTO rulebook following its agreement by ministers

at a meeting in Bali last December Indias then Trade Minister Anand Sharma hailed the

Bali deal as a landmark in the history of the WTO We were able to arrive at a balanced

outcome which secures our supreme national interest Sharma said at the time India did

not hint at any further objection until days before it wielded its veto and even then it made

no concrete demands until the WTO meeting to adopt the new rules was in progress

5 India did not object to the deal it vetoed Its objections were unconnected to trade

facilitation It blocked the trade facilitation deal to try to get what it wanted on something

else food security

6 India had already got what it wanted on food security At Bali it forced a big concession

from the United States and European Union which initially strongly opposed its demands

but agreed that India could stockpile food at subsidised prices reversing the trend of trying

to reduce and remove trade-distorting food subsidies globally The arrangement was

temporary but the WTO agreed to work towards a permanent solution within four years

by the end of 2017

7 Indias demands reversed its previous position India blocked the trade facilitation deal

because it wanted the WTO to move to a permanent solution more quickly than the four-

year timeline But diplomats say that India was offered a two-year timeframe before Bali

but it insisted on four

8 Indias veto could put it in legal danger As part of the Bali deal India won a pledge that

nobody would bring a trade dispute to challenge its food stockpiling programme which is

widely thought to have broken the WTO rules However diplomats say that Bali was a

package of 10 agreements and the only legally binding part was trade facilitation If that

fails the package unravels and India may lose its protection

9 India was isolated Cuba Venezuela and Bolivia voiced support but diplomats say other

big developing countries such as Russia China and Brazil as well as Indias neighbour

Pakistan were among the chief opponents of its veto Poorer countries stand to lose most

WTO chief Roberto Azevedo told the WTO meeting after the deal collapsed Theyrsquore the

ones with fewer options who are at risk of being left behind Theyrsquore the ones that may no

longer have a seat at the table

(Reporting by Tom Miles Editing by Clarence Fernandez)

ready to open up one of the worlds biggest

markets and sweep away the remnants of the

country s socialist past Fu ll A rt icle

India says WTO deal not dead can sign in Sept ifconcerns addressed

Nine reasons why Indias veto shocked the world

Disappointment uncertainty after deal blocked

Facebook Tw itter RSS YouTube

Follow Reuters

REUTERS SHOWCASE

Market Eye

Nifty fa lls m ost in n ea r ly 3 -

1 2 w eeks Sen sex dow n ov er

4 00 poin ts Fu ll A rt icle

Factory Activity

Fa ctor ies post fa stest g r ow th

for 1 7 m on th s in Ju ly

Fu ll A rt icle

Paying for Bail

Ja iled Su br a ta Roy g ets office

to n eg ot ia te h otel sa les

Fu ll A rt icle

Rupee Dips

Ru pee posts big g est w eekly

loss sin ce r ecor d low s in

A u g u st Fu ll A rt icle

Reviving Infosys

CEO Sikka sa y s to im pr ov e bu sin ess w ith n ew

g r ow th a v en u es Fu ll A rt icle

()


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Outlook Slashed



Fu ll A rt icle

Re-gaining Momentum



Fu ll A rt icle

Factory Lockout




Fu ll A rt icle

Gold Smuggling




Fu ll A rt icle




m obile dev ice

Fu ll Cov era ge

More From Reuters








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recommendRecommend


()







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Outlook Slashed



Fu ll A rt icle

Re-gaining Momentum



Fu ll A rt icle

Factory Lockout




Fu ll A rt icle

Gold Smuggling




Fu ll A rt icle




m obile dev ice

Fu ll Cov era ge

More From Reuters








babypipscom


GoWeLoveItinfo


People en Espanol


GreenDiarycom


World Observer


Amerikanki


Womanitely


Autoportal



Comments (0)



Back to top










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data distribution



compliance

Our next generation


Our global tax

w orkstation

Thomsonreuterscom


Investor Relations

Careers

Contact Us







Comments (0)



Back to top










Insider


infrastructure for


data distribution



compliance

Our next generation


Our global tax

w orkstation

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Nine Reasons Why India's WTO Veto Shocked the World _ Reuters

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