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| A 16-member group including India and China has sought a host of clarifications on Singapore issues including the coverage of investment, definition of cartels in competition policy and their reference to the dispute settlement body of the World Trade Organisation (WTO). |
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| The group has also favoured continuation of the study process on Singapore issues, comprising investment, competition policy, trade facilitation and transparency in government procurement. |
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| Senior commerce ministry officials told Business Standard the joint paper noted that the scope and coverage of the subjects being pushed by a group of developed countries such as the European Union, Japan and South Korea were not clear. |
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| India has sought a deferment of negotiations at Cancun. |
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Investment
The group has sought clarifications as to whether the coverage will be restricted to foreign direct investment with focus on green-field and export-oriented ventures that would lead to expansion of trade. |
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| The group also wants to know if the coverage will include portfolio investment, mergers and acquisitions, short-term investments and foreign debt. "It remains unclear how a multilateral framework stands to benefit trade," said an official. |
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| The lack of clarity on balance of payments safeguards and the rights of WTO members to regulate transfer of funds along with special provisions for developing countries had emerged during the study process. |
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| Officials further said there were wide differences on the need for binding investors' obligations and domestic governments' measures for enforcing these obligations. |
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| Questions regarding transparency in coverage have also been raised. Officials said there was no clarity if notifications on relevant laws and procedures would suffice or the proposal would extend to administration of domestic laws and procedures and prior notification and comments on investment provisions. |
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Transparency in government procurement
The group has said the scope of discussions should not cover market access and restrict the scope of members to provide preferences for domestic supplies. |
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| Officials said the joint paper had sought clarification on the coverage that whether it would be restricted to goods and central government procurement only. The countries have also desired to know if a common procurement policy for all WTO members will be prescribed. |
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Competition Policy
Officials said basic issues such as the scope and application of non-discrimination principles and the implication of competition policy on national treatment for pushing the industrial and social needs were yet to be clarified. |
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| Notifications for transparency and the definition of hardcore cartels, including whether there would be rule-based approach for their prevention and exemptions remained unclear, they added. |
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Trade Facilitation
The group has said there are no available estimates of the cost to developing and least developed countries for undertaking the obligations under the proposed framework. |
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| Even issues such as extension of timeframes for meeting the obligations and the non-recognition of the fact that countries are at different stages of development needed to be factored in, officials said. |
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Questions, questions
- India, Bangladesh, Botswana, China, Cuba, Egypt, Indonesia, Kenya, Malaysia, Nigeria, Philippines, Tanzania, Uganda, Venezuela, Zambia and Zimbabwe form the 16-member group
- They say the study process should continue as issues remain unclear
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