India’s continued eligibility for special and differential treatment (S&DT) at the World Trade Organization (WTO) hangs in the balance as poorer countries trying to negotiate further strengthening of the provision are not too sure about it.
The benefits of S&DT provisions — which leads to imposition of lower liberalisation commitments on developing countries and Least Developed Countries (LDCs) compared to developed countries in many areas — may run out for India in future measures unless it proactively tries to preserve it, a government official told BusinessLine .
“There is no clarity over whether India will continue to be covered under the S&DT provision being reviewed at the WTO in ten specific areas proposed by the G-90 group. India is trying to push for its continuation, but many members are not so eager,” the official said.
The S&DT provisions and to whom they should be extended were recently discussed at an informal meeting of the WTO, on the sidelines of the 11th Ministerial Conference in Buenos Aires.
Little wiggle room
The G-90 group, including LDCs, the African group and the ACP (African, Caribbean, Pacific), in a recent draft proposal to the WTO for adoption at the MC 11, laid down that while LDCs shall be free to introduce and maintain investment measures that deviate from their obligations under the TRIMs (Trade Related Investment Measures) Agreement, developing countries can deviate only temporarily to meet specific objectives such as increasing industrialisation, export capacity or modernisation.
It further stated that LDCs and some developing countries with capacity constraints may be allowed to suspend certain trade concessions being offered to other members in order to promote the establishment of a particular industry, or establishment of a new branch in an existing industry, or achieving substantial transformation, bridging the digital and technological divide, modernisation and upgrading and expansion of an existing industry,
Other provisions include less stringent Sanitary & Phytosanitary Measures for LDCs and certain developing countries, more favourable provisions for continuing with subsidies & countervailing measures, and more favourable treatment in new schemes and measures and also assistance for free flow of technology.
“What is important to note here is that the paper talks about S&DT not for all developing countries but for some with capacity constraints,” the official said.
There are a number of LDC members that feel that large developing countries such as India and China should not get S&DT, which actually goes against the mandate of the Doha Development Round, which extends it to all developing countries.
“India’s fate also depends on whether member countries agree with the argument that the provisions and categorisation of countries under the Doha development round still exist, despite the developed world, including the EU and the US, shunning them at the last Ministerial in Nairobi,” the official said.
If there is a broad consensus over the continuity of the Doha Round, then the problem of S&DT will immediately be sorted out. “If not, we have a big fight in our hands,” the official added. The MC 11, which is from December 10-13, is working on five specific areas including agriculture, services, e-commerce, development and fisheries.