Zeroing in on an agreeable rate of exchange on import duties among member nations was key to concluding the talks on a global free trade agreement or the Doha round at the World Trade Organisation (WTO), a top WTO spokesperson said today.
However, after the Davos summit, the sluggish pace of negotiations had finally set moving at a pace not seen in almost past three years, said Keith Rockwell, official spokesperson, WTO at a press meet. Last month, at the World Economic Forum (WEF) at Davos, leading trading nations agreed to conclude Doha round of talks by July this year. “The Indian position has been tough and they have been skillful negotiators. But they agree now that they will have to give a bit more to get a bit more. The real question right now is what is the rate of exchange,” he said.
Differences in opinion among WTO member nations on farm subsidies and sectorals, have been the main stumbling blocks in the Doha round, launched in 2001. Under sectorals, negotiating countries have to agree to cut import duties in some sectors at a faster pace than other sectors. Rockwell said there had been a substantial convergence in agriculture-related issues among nations, but talks in other sectors like trade environment and intellectual property rights were at a lesser advanced stage. In 2008, at the WTO Mini-Ministerial in Geneva, the talks collapsed on issues like sharp differences on agricultural Special Safeguard Mechanism (SSM) and subsidies. “The picture has changed. The negotiations have been accelerating at a pace not seen since 2008. For the first time, everyone is saying that they know what needs to be done. All are saying that we know we need to give more,” he said.
According to Rockwell, by April, key issues like the text on agriculture and sectorals will have to be agreed to for the talks to conclude by the end of the year. Thus, while the Indian position in the WTO was same as it was in 2008, with high commodity prices, it was unlikely that any country would apply them in practice, he said.
“Both the issues of safeguard mechanism and sectorals are still very important. The only difference is the prices are high and safeguard mechanisms are unlikely to be applied now,” said Rockwell.
