A common South Asian position in the WTO negotations?

Is it possible to work towards a common South Asian position in international trade negotiations? fe presents views from experts on the issue here and from our neighbours in Pakistan and Sri Lanka

Transform sensitivities into regional strength

South Asian countries should agree to, at least, work out a broad framework on common issues

SYED WAJID H PIRZADA
Wednesday, August 09, 2006

Agriculture has become a linchpin for ongoing World Trade Organisation-mandated negotiations for so many reasons. Developing countries (DCs) genuinely felt they were short-changed during the Uruguay Round, for market access promises didn’t go beyond lip service. The Hong Kong Ministerial, too, failed to further the Doha Development Agenda, as all big-ticket items, like domestic support and market access were studiously deferred.
Since Hong Kong, the DCs and least developed countries (LDCs) had been proactively engaged in Geneva-based work, yet ministers were unable to agree on modalities that could be fleshed out into political decisions satisfying the long-outstanding demand of DCs and LDCs. Since the G-8 Summit in St Petersburg, G-6 meetings in Geneva are focusing on reaching some political decision, and to this end the WTO director-general is mustering support. An ambitious outcome is not likely at this stage, yet some cosmetic changes, in the form of minimalist outcome to keep the negotiations alive, could be made. It would, however be difficult this time, for industrialised countries to deceive DCs and LDCs, by furthering their agenda of unilateral trade liberalisation.
This provides South Asian countries an opportunity to articulate their common position, which shall help underpin the prospects, in the long-term perspective, of the region emerging as an effective political and economic bloc. Given some sensitivities of regional member countries on common positions, some being less developed compared to others, it is still possible for these countries to agree, at least, on a broader framework to start with, for example on:
• The goal of securing market access for their agricultural products
• Minimising distortions in the form of subsidies on the global agricultural market place
• Articulating their special needs under Special and Differential Treatment
Within this broader framework, regional member countries can further adjust their specific negotiating stance on issues like special products, food aid etc. Given, the political decisions of Hong Kong, the sensitivities of LDCs could be well taken care of in terms of special treatment and duty & quota free access, even if they fully subscribe to a broader framework of the G-20. By agreeing to it, they can broaden their stake by involving others like G-20, and possibly G-33, which will together make a stronger coalition. This will help South Asian countries secure a meaningful gain in the negotiations that in turn shall serve two key purposes: they would be able to translate market access gains into regional development, and develop their own political & economic identity within the WTO.
Further, South Asian countries can articulate their position seeking a commitment to review the Green and Blue Box criteria to insure that these programmes are truly non-trade-distorting and production-limiting.
As such, it is likely that WTO members will converge to the G-20 position on thresholds and tariff reduction formulae. Thus the G-20 position provides a common ground for South Asia as a coalition. It is, therefore, essential that South Asian countries first agree to at least the G-20 proposal on tariff reductions and overall trade distorting support. There is a wide divergence in the proposals for the number of special products. South Asian countries can agree to a reasonable number, say, 5% tariff lines. This will address their sensitivities in terms of food security, livelihood and rural development, and give them moral standing to compel rich countries to contain the number of sensitive products.
On the cotton initiative, these countries need to support a larger reduction in domestic support, as proposed under the formula outlined in para 87 of the HK Ministerial Declaration. A cut in domestic support is very important for cotton to achieve any significant impact on global prices. South Asian countries, given their sensitiveness in this area, may seek to negotiate duty and quota-free access for cotton for all DCs & LDCs.
—The writer is with Roots Pakistan-a grassroot development action