Agenda for India at WTO

About CUTS-CITEE
Established in 1983, Consumer Unity & Trust Society (CUTS) has been involved in several areas of public interest, working simultaneously at the grassroots, national, regional and international levels, with the mission Consumer sovereignty in the framework of social justice and equality, within and across borders.

In 1991, CUTS ventured into the area of trade and development due to a lack of capacity among consumer groups in the South. There were two main reasons for CUTS to engage in international work on international trade and development issues. First, the demand emanating from various constituencies in the developing world to analyse, inform and educate them, and often advocate on their behalf. Secondly, the understanding within the organisation, that in an increasingly globalising world, as many of the problems have their source at the international level, the solutions too would lie there, or at least a better understanding will help resolve problems locally.

With this as backdrop, the CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE) was established in 1996, to carry out high level political economic analyses on trade and development issues, advocate at the appropriate fora and strengthen capacities of the civil society in developing countries.

Since its inception, the work programme of CUTS-CITEE has three distinct and interwoven strands:

  • Creating and building long-term capacity to address issues of and the complex linkages between trade, investment, environment and development from a Southern perspective through policy research, advocacy, networking, cooperation, and information dissemination and outreach.
  • Analysing actions of international/inter-governmental institutions and national governments in this arena so as to enhance their responsiveness and acountability to the people and civil society at large.
  • Providing the upward and downward linkages with grassroots organisations to convey their views and concerns to policy makers at national and international levels, and vice versa.

Background

Given the above-stated strands, the Centre has been conducting research, dialogues, advocacy, networking, information dissemination and outreach etc.

During 1996-97, the Centre had organised four policy dialogues in India to discuss the emerging issues before the World Trade Organisation (WTO). Two of these were organised just before the first WTO Ministerial Conference at Singapore, December 1996 and one policy dialogue following this meeting. Recommendations for organising these dialogues emerged from a Roundtable Conference, held in Nagarkot, Nepal in May 1996.

In all, there were 87 participants in these dialogues, out of which 36 were civil society representatives. People from the government, media, business organisations and research institutions also participated in these dialogues.

The objective was: “To develop a better understanding on the existing and emerging issues at the World Trade Organisation, their impact on India and evolve a consensus on India’s approach through a structured dialogue among policy makers, civil society representatives, experts and mediapersons.”

The aim was to enable India to adopt a proactive stand at the international trade fora in the future, and also address the crucial need for strengthening of domestic policy to meet the challenges of globalisation and liberalisation.

The outcome of the policy dialogues was a set of recommendations on general and specific issues, i.e. action points for advocacy. In all there were 42 recommendations, which were classified into the following sections:

General issues

  • Market access and trade liberalisation
  • TRIPs, biological diversity and biotechnology
  • Trade, investment and competition
  • Trade and Environment
  • Trade and labour standards.

In December 1997, the document, ‘Agenda for India at the WTO – Need to be Proactive,’ taking into account the above-mentioned recommendations, was prepared and distributed as widely as possible. Since then the Centre has been doing advocacy with policy makers, trade experts, business organisations and mediapersons to take on board appropriate strategies to make those recommendations into realities.

More than three years have passed and now its time to revisit those recommendations, in order to get an idea of the Centre’s advocacy efforts. The following sections analyse the recommendations, the action points, outcome and leftover, and have also been graded as follows:

A+ Highly successful
A Successful
A- Moderately successful
B+ Above average
B Average
B- Below average

This exercise found that out of 42 recommendations, 13 cases we were considered ‘highly successful’ while 12 cases were ‘successful’. In four cases, we were ‘moderately successful. In six cases, the success was either ‘above average’ or ‘average’. In only one case, the success was ‘below average’.

GENERAL ISSUES

Recommendations

Action Point/Target

Outcome

What is yet to be Done?

Grade

India
has to evolve a proactive agenda with political economic arguments on
existing issues at the WTO

Evolve
specifically designed strategy by involving all concerned actors through
a series of dialogue

 

Ministry
of Commerce

Several
stakeholder meetings have been conducted

 

More
dialogues are to be organised to evolve a proactive agenda

A

A
National Trade Policy Council should be established. Working/Expert
Groups on issues should be set up, which may co-opt experts in the
field.

Establish
a National Trade Policy Council

 

Ministry
of Commerce

National
Advisory Committee on International Trade has been formed and meetings
were regularly  conducted

 

Specific
Working Groups have also been formed and meetings held

To
involve other ministries in this Committee

A+

Impress
upon the polity the need to implement our commitments under the WTO
while fully utilising the flexibilities provided in the Agreements to
safeguard and promote India’s interests

Build
positive public opinion with well-argued position papers, seminars and
strategically placed articles in leading English and local language
newspapers

 

Business
chambers, NGOs

Politicians
have been informed through

·      
regular debates conducted by business chambers, NGOs and the
government

·      
seminars, and

·      
articles

Convince
politicians to take interest and approach trade issues in pro-active
manner

A

Take
stock of existing issues at the WTO and what needs to be done

Take
structural initiative by involving various ministries, business and NGOs

 

Ministry
of Commerce

Various
initiatives have been taken by involving all actors

More
interactive efforts are needed

A

Conduct research on the impact of existing and emerging issues at the
WTO to enhance India’s preparedness

Prepare
research papers on specific issues and maintain contact points in
concerned ministries

 

Ministry
of Commerce, research institutes, NGOs

Research
papers were prepared, distributed and dialogues were organised regularly

Follow-up
research and structured advocacy are to be conducted regularly

A+

Clarity in defining India’s strategic economic interests and better
articulation of long-term goals

Develop
a Vision 2020 document and conduct debates through a structured
interactive strategy

 

Ministry
of Commerce

Vision
2020 has been prepared

To
evolve a structured interactive strategy

B+

Better
coordination of different ministries on inter-linked issues

Establish
an Inter-ministerial Committee of Secretaries

 

Ministry
of Commerce

Inter-ministerial
Committee of Secretaries has been formed and meetings were regularly
conducted

To
generate required interest in other ministries on trade issues

A+

Use
bargaining chips in the international political arena and build
sector-specific alliances

Identify
specific areas for bargaining for better terms under the existing WTO
acquis

 

Ministry
of Commerce

Specific
areas and bargaining chips have been identified

More
efforts are needed in taking them forward

B

Involve
United Nations Conference on Trade and Development in 
policy formulation at the WTO

Take
lead on the issue of strengthening UNCTAD in a proactive manner

 

Ministry
of Commerce, Ministry of Foreign Affairs

Taken
various steps, including conducting issue-specific seminars to
strengthen UNCTAD’s role in trade policy matter

More
issue-specific seminars need to be conducted and results to be taken
forward

A

Help
least developed countries with better market access for their products

Provide
zero tariff concessions to LDCs

 

Ministry
of Commerce

Efforts
are going on this regard, particularly for South Asian countries

Concessions
are to be extended to African LDCs and results to be monitored

A

Help business to understand WTO issues better

Prepare
WTO guides for business

 

Research
institute, NGOs

Several
guides have been prepared (CII-Business Guide on WTO, CUTS-LSE Training
of Business Leaders, WTO Audit of Indian Industries) and distributed
widely

Need
to reach out to the business community at large and at various levels,
especially small and medium enterprises

A+

Concerted
efforts to build capacities of business chambers, academia, NGOs and
mediapersons

Discuss the issue in the policy making bodies of
the Government

 

Ministry
of Commerce

Capacity
building efforts are on and in a coordinated manner

Much
more interaction among different actors are needed

A

Train
mediapersons on trade issues for unbiased and well-informed knowledge

Expose
and conduct media workshops, including inviting them in seminars etc

 

Research
institutes, NGOs, business chambers, Ministry of Commerce

Mediapersons
have been trained on trade policy issues by CUTS, government and others
on a regular basis, which is visible in national newspapers

Provide
more exposure to Indian language journalists so that they write in an
objective manner

A

Operationalise
specific recommendations

Prepare
a detailed action plan for circulation to all actors

 

Ministry
of Commerce

Plan
of action has been prepared and discussed widely

Need
to implement the plan of action and monitor it regularly so that
necessary revision can be done at appropriate time

A

Enhance
the national economic research budget with contribution from government
and business

Address
the Planning Commission and business chambers on creating higher outlays
for research

 

Ministry
of Commerce, NGOs

Planning Commission has created a corpus fund of
Rs.100 crore (US$ 22 million) for conducting research

More
in-depth, field-based research needs to be conducted

A+

MARKET ACCESS AND TRADE LIBERALISATION

Recommendations

Action Point/Target


Outcome


What is yet to be Done?


Grade


Pressurise
industrialised countries to initiate structural adjustments,
particularly in textiles and agriculture, to open up markets as mandated
by the WTO

Conduct
political analyses through structured consultations with all actors and
adopt appropriate advocacy strategies

 

Ministry
of Commerce

Political analyses have been done

Advocacy
needs to be more focussed

A

Replace
anti-dumping measures from the provisions of WTO by appropriate
competition legislation

Take
appropriate steps on the issue and exploit the divisions in the
industrialised countries

 

Ministry
of Commerce

Steps have been identified

Advocacy
strategy to be evolved for seeking allies at the different levels

A

Seek
further liberalisation of agricultural trade

Take appropriate steps in consultation with the
Cairns Group of Countries

 

Ministry
of Commerce

Consultation is going including the use of
bargaining chips to get better market access

More
focussed approach is needed

A+

Study
the effects of tariff escalation on development and environment

Use
the study as a basis for taking market access initiatives in the future
negotiations at the WTO

 

Research
institutes, NGOs, Ministry of Commerce

Studies have been done and used by the Government
of India to advocate at the WTO for the rectification of tariff
structures for different commodity groups

Results
of the studies need to taken forward at appropriate levels

A+

Maintain
a constant vigil on the emerging non-tariff barriers and strategise for
the future

Identify
and analyse major trade barriers hindering market access and trade
liberalisation

 

Ministry
of Commerce, Business, Research institutes, NGOs

Studies on non-tariff barriers affecting India’s
exports have been and are being conducted by CUTS and other agencies and
appropriate strategies are taken

Strategies
are to be implemented at the political level by seeking allies

A+

TRIPs, BIOLOGICAL DIVERSITY AND BIOTECHNOLOGY

Recommendations

Action Point/Target

Outcome

What is yet to be Done?

Grade

WTO-compatible
amendments to the Patent Act with appropriate safeguards

Organise
debates on the issue before amending the Patent Act

 

Ministry
of Commerce

Public debates have been organised before placing
the amended Patent Bill before the Parliament

Awareness
generation at various levels on intellectual property rights and their
implications for the economy

A+

Enact
a sui generis legislation to
protect plant varieties

Coordinate
the formulation of such a legislation

 

Ministry
of Commerce, Ministry of Agriculture, NGOs, Research institutes

The formulation of such a bill is under progress as
public debates continues

Advocacy
for taking into account public interest issues while preparing the bill

B

Strengthen
competition legislation to cope with monopolistic situation arising out
of patent exploitation

Take
appropriate actions at various levels

 

Ministry
of Finance (Department of Company Affairs)

A new Competition Bill has been prepared, which has
not taken into account the concerns raised

Need
to sensitise and educate policy makers on linkages between IPRs and
competition

B

Need
for a public debate on the definition of micro-organisms

Organise
the debate and study the linkages between the Convention on Biological
Diversity and TRIPs

 

Research
institute, NGOs, Ministry of Science and Technology (Department of
Biotechnology)

Public debates are in the process

Focussed
studies need to be completed and taken forward at the appropriate levels

B+

Simplify
and strengthen the national patents system

Analyse
the drawbacks and take appropriate actions

 

Ministry
of Industry

Drawbacks have been analysed and the amended law
has taken them into account

Monitor
the implementation of the new law

B+

Greater public vigilance on patent applications

Develop
appropriate mechanisms while involving NGOs in the process

 

Ministry
of Industry, NGOs

Mechanisms have been developed

Ensure
NGO involvement in the process

B+

Prepare
well-argued position papers for the review of TRIPs

Commission
such papers for advancing the issues

 

Ministry
of Commerce, Research institutes, NGOs

Position papers have been prepared

Concerted
efforts are needed to take the arguments forward

B+

Analyse
and assess domestic legislation which have an impact upon biological
diversity

Draw
up a strategy for analyses and public debates

 

Research
institutes, NGOs

Strategic analysis has been made, and public
debates have been organised

A
need for a more focussed effort

A

TRADE, INVESTMENT AND COMPETITION

Recommendations

Action Point/Target

Outcome

What is yet to be Done?

Grade

Discuss
implications of international investment agreements

Conduct
in-depth research

 

Ministry
of Commerce, research institutes, NGOs

Some research has been conducted and the results
were discussed

In-depth
research and advocacy are required

A

Strengthen
domestic policies and legislation governing investment, competition and
consumer welfare

Amend/enact
legislation and organise public debates

 

Ministry
of Commerce

Enactment of the new competition legislation is on
the cards and consumer protection legislation is being amended

More
efforts are needed to take into account investment and consumer welfare
issues

B

Explore
the development of international competition policy to safeguard the
interests of developing countries

Needs
to initiate and support discussions on this issue at the WTO Working
Group on Trade and Competition Policy

 

Ministry
of Commerce

Taking part in the discussions at the WTO Working
Group

Need
to be pro-active in raising development dimensions vis-à-vis
competition and highlight developing countries’ concerns

A

Revive
the discussions on the UN Code of Conduct on Transnational Corporations

Demand
revival of the discussions and seek allies in other developing countries

Not much efforts have been made

Advocate
at the appropriate level to revive the Code

B

Explore
intra-OECD positions on multilateral agreement on investment and discuss
them tactically with the OECD members

Alert
Indian missions to meet the appropriate persons in the Economic
Ministries of OECD Governments to gain a better understanding

 

Ministry
of Commerce

Multilateral Agreement on Investment (MAI) at the
OECD level was aborted

Issue
is not yet dead and diluted version is coming up at the WTO, thus
preparation is necessary

A+

Prepare
an alternative vision of a MAI and gain support through advocacy

Commission
research on the issue and organise public debates

 

Ministry
of Commerce, research institutes, NGOs

Prepared and distributed materials while organising
a series of public debates globally

Generate
awareness about the alternate version of MAI while continuing advocacy

A+

TRADE AND ENVIRONMENT

Recommendations

Action Point/Target

Outcome

What is yet to be Done?

Grade

Hold
consultations with stakeholders to take stock and evolve an appropriate
response

Take
positive steps and organise regular meetings to design an appropriate
action plan

 

Ministry
of Commerce, Ministry of Environment & Forests

Consultations have been held, and an action plan
has been designed

Advance
the action plan at the political level while seeking allies

A+

Garner
support for excluding globally beneficial, environment-friendly
technologies from intellectual property rights

Analyse
the issues in a coordinated manner, identify allies and design
appropriate advocacy strategies

 

Ministry
Environment & Forests, NGOs

Some analysis have been done

Analysis
needs to be done for designing and implementing advocacy strategy

B

Adopt
national environmental standards to minimise adverse effects of
environment-related trade measures

Ensure
proper participation in the standards setting process

 

 

Ministry
of Environment & Forests

Participation of consumer organisations in the
standard setting process has been ensured

Concerted
efforts are needed to make national standards compatible with the
international standards

A

Advocate
for the adoption of unambiguous rules and notifications relating to
trade in domestically prohibited goods

Conduct
research and outreach on the issue and seek allies at the international
level

 

Ministry
of Commerce, NGOs

Research is going on

Appropriate
advocacy strategy is to be designed for political push while also
seeking allies

B

TRADE AND LABOUR STANDARDS

Recommendations

Action Point/Target


Outcome


What is yet to be Done?


Grade


Guard
against linkage between trade and labour standards

Assert
that labour standards should not be linked with trade

 

Ministry
of Commerce, NGOs

Vocal against linking labour standards with
international trade and clearly articulated India’s position 


Continue
dialogues and advocacy on issues of linkage between trade and labour
standards and find out a globally acceptable solution

A+

Take
steps to effectively implement labour welfare legislation

Make
holistic efforts to improve labour welfare in the country

 

Ministry
of Labour

Labour Commission has recommended appropriate steps
that the Government has accepted

More
reforms are required, thus advocacy efforts should continue

A

Prepare
for multilateral initiatives in case social clause is discussed at the
WTO

Conduct
research and identify appropriate advocacy options

 

Ministry
of Commerce, NGOs, business chambers

Several research projects have been conducted and
advocacy is in process

Discuss
various options at the national level, by involving all relevant
stakeholders, including NGOs

A

Prepare
appropriate communication strategies to place the counterfactuals in the
right context

Analyse
and collate the counterfactuals and design communications strategies

 

Ministry
of Commerce, Ministry of Labour, NGOs, business chambers

Counterfactuals are being prepared

Need
to develop a strategy to improve communication with governments, trade
unions, NGOs, academics, and media persons

B+