Southerly trade winds | Latest News India - Hindustan Times
close_game
close_game

Southerly trade winds

None | By
Jul 26, 2006 12:18 AM IST

Doha round talks are off, and any progress seems unlikely for months, if not years. With this goes some of our hopes of boosting growth through increased trade.

Doha round talks are off, and any progress seems unlikely for months, if not years. With this goes some of our hopes of boosting growth through increased trade. The WTO in its present form remains too unwieldy — its sheer size, the enormity of the task and the multitude of conflicting interests — and biased in favour of the richer players. Its reform requires a change in the underlying structure of international trade — a contentious, long-drawn out process. So the option before us is to keep open the route of regional and preferential trade arrangements.

HT Image
HT Image

Fortunately, Indian trade policy envisages pursuance of all tracks — multilateral, bilateral and regional, as Commerce Minister Kamal Nath reiterated on Monday — and is thus well-suited to cope with the situation. The two proposals announced last week — India’s trilateral FTA with the Mercado Común del Sur (Mercosur) and the South African Customs Union (Sacu) and the comprehensive economic cooperation agreement (Ceca) with the EU — make sound economic and strategic sense. The FTA with Mercosur and Sacu will bring together the economic and trade powerhouses of the developing world — Brazil, Argentina, India and South Africa, besides Uruguay, Paraguay, Namibia, Botswana, Lesotho and Swaziland. Trade between these countries is expanding steadily. For instance, trade between India, Brazil and South Africa in 2005 stood at $ 2.34 billion, double the 2004 figure of $ 1.2 bn. India is well placed to benefit from the vast Mercosur market, with its markets-and-products schemes that offer WTO-compliant export incentives and the special concessions to companies trading with this region. The FTA is also strategically significant as Brazil and South Africa are members of the Nuclear Suppliers Group. Improving ties with African countries is also important, given India’s bid for a permanent seat in the UNSC.

Hindustan Times - your fastest source for breaking news! Read now.

The proposed Ceca, an agreement on trade in goods and services, investment, movement of service providers and taxation, meanwhile will cement India’s relationship with the EU, its largest trading partner. It’s a good move given that the EU has proven to be more adaptable regarding agriculture issues at the WTO. This pact will also be significant because it will enable Indian professionals to work in the EU. Hopefully, the Doha Round will get back on track, but in the meantime, let’s keep our powder dry.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Mukhtar Ansari Death News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On