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This is an archive article published on April 29, 2013

Lamy panel report ignores development concerns

In the context of fresh position papers being crafted for the World Trade Organization,a significant development is the panel formed by Pascal Lamy

In the context of fresh position papers being crafted for the World Trade Organization,a significant development is the panel formed by Pascal Lamy,DG WTO,to examine challenges for international trade in the 21st century. Its report recently issued,contains many recommendations that could adversely impact developing countries like India. Abhijit Das,Professor amp; Head,Centre for WTO Studies at the Indian Institute of Foreign Trade,New Delhi talks to The Indian Express on the issues.

How do you evaluate the Lamy Report?

Overall,the report lacks balance and is not development friendly. It has gone against the known positions of a large number of developing countries on many issues.

Instead,it has chosen to project the views of developed countries on most of the issues.

Its silence on how to address the biggest challenge confronting the WTO successful and balanced conclusion of the Doha Round raises questions about the relevance of the panel. It is unlikely to see any convergence of support among WTO members in favour of its recommendations.

What are the key recommendations of the report?

From the perspective of developing countries,perhaps the most troubling aspect is that it effectively suggests review and modification of WTO rules with a view to curtailing special and differential treatment provisions that favour the developing countries.

Many of these rules were a result of hard bargaining during the Uruguay Round of trade negotiations. Many developing countries acquiesced to taking on onerous obligations as they had the assurance of some flexible treatment. Rewriting these rules would not only change the existing rights and obligations of WTO members,but also reinforce the perception that development considerations have little space in the WTO.

While delineating the agenda for trade reforms in a changing world,the report recommends establishing labour standards along international value chains. Implementing this recommendation would erode the price competitiveness of developing countries. It would provide yet another instrument to the developed countries to block competitive exports from developing countries.

The report calls for involving NGOs. Your views.

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The report forcefully argues that the WTO should engage more directly with NGOs as this would result in better informed decisions. Now this is fraught with considerable risk.

This process would result in promoting NGOs who have the financial wherewithal to participate in such an engagement,excluding many in developing countries. There could also be a tendency to cherry pick NGOs known for articulating the views of the donor agencies of developed countries. These factors could severely disadvantage developing countries in the proposed dialogue and consultation process.

 

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