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Mr. Pascal Lamy, Director General, WTO;
Shri Kamal Nathji, Commerce and Industry Minister of India;
Mr. Kenneth Valley, Minister of Trade and Industry, Trinidad and Tobago;
Mr. Ted Menzies, Parliamentary Secretary for International Trade, Canada;
Distinguished participants from governments, trade industry, academia &NGOs;
Members of the media, Excellencies,
Ladies and gentlemen.
A very good morning and a warm welcome to all of you. It gives me great pleasure to inaugurate this International Seminar on ‘Saving Doha and Delivering on Development’. I am extremely happy to learn that leaders from different walks of life including political, academic, professional and civil society are here to participate in this Seminar to deliberate and evolve possible ways and means of moving forward to reach a meaningful conclusion of the Doha Round.
There is a saying that ‘you can not cross a crevice by several small jumps; you can do it only by one long jump’. The gap between the developed countries and the rest of the world needs one such long jump. When ‘Development’ was scripted as the central theme of the Doha Round way back in 2000, unarguably a long jump was foreseen. That is why the Doha Round is the ‘Development Round’ and not a ‘Market Access Round’. But then some of the members i.e. particularly, the developed members faltered, making some of us skeptical and many others cynical of the Round’s delivering on its promises. We have crossed the original deadline. So, there is an additional responsibility for all of us to save the Round.
Since there were considerable divergences in the positions of WTO members, the negotiations were suspended in July, 2006. The WTO members effectively had a “time-out” to seriously reflect upon the situation, examine available options and review their positions. Though negotiations have recently resumed in earnest, there are still many uncertainties surrounding the possibility and nature of the outcome.
India remains fully committed to the multilateral trading system, and to the successful and early completion of the negotiations under the Doha Work Programme, based on the fulfillment of the mandate agreed at Doha, the July 2004 Framework Agreement and the Hong Kong Ministerial Declaration. Development is not a question of choice at this stage. It is what was agreed at Doha and that is what we need to deliver.
We have said it earlier and I say it now that the developed countries have to recognize that the development dimension is at the core of the Doha Development Agenda. India looks forward to the developed countries taking a leadership role in moving the Doha process forward by correcting distortions in the global trading system, especially in agriculture, which would meet the aspirations of a large number of developing countries, specially LDCs.
Agriculture remains critical to our collective interest. It is imperative that the trade–distorting subsidies and protection provided by a few developed countries are eliminated as soon as possible so that a truly level playing field can be established. Export subsidies of all forms must be eliminated by a certain date and domestic support substantially reduced under the Doha Round, in order to provide market access opportunities to all.
Agriculture supports and provides livelihood to the bulk of the farming community in the developing world. The viability and dynamism of their agriculture sector remains essential to secure success in their poverty alleviation strategies. It has been acknowledged worldwide that budget-based supports of individual countries as well as aid from others cannot deliver on the targets we have set for ourselves under the Millennium Development Goals.
The bulk of the rural poor in countries like India are vulnerable to external developments. Accordingly, proposals designed to impose a disproportionately higher burden on developing countries are not constructive, and have the potential to disrupt their very social and economic fabric. Such proposals will not be acceptable. Tariffs remain the only instrument of border protection and for safeguarding food and livelihood security and rural development. Appropriate policy space must be intrinsic to any agreement through instruments such as appropriate tariff reduction formula, Special Products and Special Safeguard Mechanism.
For developing countries, the manufacturing sector contributes substantially to GDP and employment opportunities; hence, it is crucial for delivering on the development mandate of the Doha Round. While an ambitious outcome of NAMA negotiations is desirable, we need to give due consideration to the developing countries through adequate flexibility to protect their nascent industries and the vulnerable sections of their economy. Whatever may be the final coefficients in the Swiss formula, it should ensure that the developing countries undertake lower reduction commitments than the developed countries, as is the mandate.
The Services negotiations must also have ambitious outcomes. During the current round of negotiations under GATS, many developing countries including India have autonomously liberalized their service sectors and have offered to bind this liberalization in their Revised Offers. However, developed countries have to realize that enough flexibility is necessary for developing countries to pursue their development and poverty alleviation objectives.
Developed countries cannot and should not avoid liberal commitments in all Modes, particularly in Modes 1 and 4. Large scale asymmetries exist in these areas from the Uruguay Round and developing cold feet in any of these areas would completely negate the development dimension of the Doha Round.
Pro-development elements are scattered across all areas of negotiations. We must seriously attempt to consolidate the development agenda. The biggest handicap is that we have not been able to develop benchmarks to facilitate a developmental audit of the progress of negotiations. We need to ensure that the development dimension stays in clear focus.
To conclude Excellencies, ladies & gentlemen, we all are grappling with a difficult task but I am sure, and all of you will agree with me, that it is not impossible. It requires enough political sagacity and courage on the part of the developed countries to untangle the deadlock. The two days of deliberations would certainly bring out productive and creative solutions from everybody present here and these would hopefully form the basis for moving ahead for a successful conclusion of the Doha Round. I wish you all the very best for a fruitful outcome of the seminar.
Thank you, ladies and gentlemen.
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