Question #
"The broader aims and objectives of WTO are to manage and promote international trade in the era of globalization. But the Doha round of negotiations seem doomed due to differences between the developed and the developing countries." Discuss in the Indian perspective.
Answer by Chad #
In the Indian perspective, the World Trade Organization (WTO) serves as an important platform for managing and promoting international trade. Its broader aims and objectives align with India's interests as a developing country seeking to expand its presence in global markets. However, the Doha Round of negotiations has faced significant challenges, mainly due to differences between developed and developing countries.
One of the main issues that have led to the impasse in the Doha Round is agricultural subsidies. Developed countries, such as the United States and the European Union, provide extensive subsidies to their farmers, which adversely affects the competitiveness of agricultural products from developing countries like India. These subsidies lead to overproduction and lowering of global prices, making it difficult for Indian farmers to compete and prosper.
India, being a major agricultural country with a large population dependent on the sector, has consistently pushed for the reduction of these subsidies in order to level the playing field for its farmers. However, developed countries have been reluctant to make significant concessions, leading to a deadlock in the negotiations.
Another contentious issue is market access for manufactured goods, particularly from developing countries. India seeks greater access to developed country markets for its products, aiming to enhance export opportunities and drive economic growth. However, developed countries often maintain protectionist measures such as tariffs and non-tariff barriers, which restrict market access for developing countries.
Furthermore, certain intellectual property rights (IPR) provisions under the WTO also pose challenges for India. Developed countries often push for stricter patent protection and enforcement regulations, which could limit India's ability to produce affordable generic medicines and access life-saving drugs for its population. India, as the "pharmacy of the developing world," advocates for a balanced approach that ensures affordable access to essential medicines while respecting IPR obligations.
Overall, the differences between developed and developing countries in the Doha Round of WTO negotiations reflect the diverging interests and priorities of various nations. While developing countries like India strive to ensure fair trade practices and create opportunities for growth, developed countries often prioritize their own economic interests and protectionism.
Despite the challenges, India continues to actively engage in multilateral trade negotiations within the WTO framework. It seeks to safeguard the interests of its farmers, enhance market access for its products, and ensure a more equitable global trading system. India aims to strike a balance between its domestic concerns and the broader objectives of facilitating international trade in an era of globalization.