Second Opinion: Ashwani Mahajan
On the night of July 29 a blink-and-miss variety ticker was seen flashing across most English language news channels, reporting that the World Trade Organization's Mini Ministerial talks had failed. It is said that the Indian delegation to the talks had demanded for a significant reduction in subsidies, especially trade distorting subsidies, being given by developed countries to their agricultural sector. The talks failed because these nations were not ready to give in to the demands of India and its supporters. Neither were they prepared to accept special security measures (SSMs) for the security of farmers in developing countries.
The WTO came into existence on January 1, 1995. Prior to that world trade was guided through the General Agreement on Trade and Tariff (GATT). GATT was constituted in order to give international trade a boost, which was disrupted during the second World War. Eight rounds of talks were held under GATT.
During the course of the eighth round four issues suvh as agriculture, services, investment, and intellectual property were taken up. It was now decided that countries would be bound by the decisions taken under GATT. A dispute settlement mechanism was also put in place. All this was included in a document called the Final Agreement and thus the World Trade Organization was born. Since then six Ministerial Conferences have been organised by the WTO. The initial meetings went off 'smoothly' and the wishes of the developed countries were fulfilled. But the developing countries were forced to reduce trade tariffs and remove quantitative restrictions on imports.
In this context the Indian delegation's courage to stand firm despite being pressurised by the developed world is commendable. Even before the talks started on July 21, pressure was being put on India to concede to the wishes of the US, the EU and other developed nations. They wanted India and other developing countries to allow free import of agricultural commodities. But if that happens the livelihood of millions of our farmers will be at risk, which in turn will hamper our food security. Thus, India should remain steadfast and not cave in to the WTO's demands, which is using trade as a potent weapon to colonise developing countries for neo-imperialists such as the US and the EU.
