India, China take common stand on WTO Doha round issues

Taking a common stand after assessing the progress of negotiations in the Doha Round of the World Trade Organisation (WTO) at this critical juncture, Shri Kamal Nath, Minister of Commerce & Industry and Mr. Bo Xilai, Chinese Commerce Minister have agreed that the major issue holding back and impeding the progress in Round is the lack of movement by the developed countries in terms of early removal of distortions caused by huge subsidies and significant market access barriers in developed countries. "Unless the outcome of the negotiations upholds the proposals of developing countries resulting in real and effective reduction of trade distorting domestic support coupled with meaningful disciplines, substantial improvement in market access by developed countries and eliminations of all form of export subsidies the aspirations of the developing countries, as built in the mandate, will not be fulfilled", they categorically said in the India-China Joint Ministerial Statement which was issued in Beijing today.

Mr. Bo Xilai and Shri Kamal Nath met in Beijing on 16th April 2007 to compare notes and exchange views in order to review the progress of negotiations on the Doha Development Agenda (DDA) of the WTO and to safeguard the common interests of developing country Members in the future course of negotiations. Mr. Kamal Nath briefed Minister Bo Xilai about the discussions in the G-4/G-6 meetings in Delhi on April 12, 2007.

They recalled the commitment of the two countries expressed in the Joint Declaration issued during the state visit of the President of the People’s Republic of China in November 2006 to strengthen the cooperation of the two countries in the WTO and safeguard the legitimate rights and interests of the developing countries. Reaffirming their support for an open, fair, equitable, transparent and rule-based multilateral trading system and their determination to coordinate with other members of the WTO, especially the developing countries, in order to ensure placing the development dimension at the heart of this Round, the two Ministers expressed their sincere hope for achieving an expeditious conclusion of the Doha Development Round based on full realization of the development goals as mandated in the Doha Declaration, the Framework Agreement of July 2004 and the Hong Kong Declaration.

The two Ministers identified the other core development concerns of the developing countries that are vital to delivering the development imperatives in these negotiations and reiterated that special products (SPs) and the special safeguard mechanism (SSM) play a vital role in addressing the food security, rural development and livelihood concerns of developing countries and the outcome of Doha negotiations for these flexibilities can be sustainable only if it enables the developing countries to meet their development objectives. They rejected any renegotiation of the principles and elements embodied in the Doha mandate and any proposals on these crucial development instruments which could have the effect of undermining the ability of developing countries to meet their food security, livelihood security and rural development needs.

They urged the developed members, in particular the major trading countries, to realize that they bear a special and specific responsibility for the outcome of the Round. They must show their readiness to implement measures that remove trade distortions and significantly open their markets. Their current positions do not provide an adequate basis for leading the agriculture negotiations to a successful conclusion. They must, therefore, significantly improve their proposals especially in the two crucial areas of domestic support and agriculture market access as well as be prepared to deliver on the development dimension of the DDA.

The two Ministers agreed to remain in close touch and continue the coordination between the two countries for the future WTO negotiations in order to ensure that the development interests of developing countries are secured in accordance with the mandate of the Doha Development Round.

Later, in a separate meeting with the Chinese Agriculture Minister, Shri Kamal Nath raised issues of trade interest to India in the agricultural sector such as export of fruits & vegetables, bovine & dairy products etc. The Chinese Minister assured to expedite issue of sanitary and phyto-sanitary clearances that was hindering exports of these items to the Chinese market. China, in turn, raised the issue of export duty on iron ore supplied by India.

Source : Press Information Bureau

Keywords