India will be laying out its final proposals on multiple global trade issues, including vaccine patent waiver, when World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala visits the country on October 20.
Iweala's three-day trip to India assumes major significance as all WTO member-nations will converge in November-end for the global body's biennial ministerial conference (MC). The summit usually sets the global trade legislation for years to come and the 12th MC is set to see major tussles in a number of areas.
The main fight will be over the suspension of global intellectual property rights of COVID-19 vaccine manufacturers, a proposal by India which has seen a persistent deadlock. “Legacy issues, such as the proposed global e-commerce rules, permanent stockholding of foodgrains, fishing rights and subsidies for agri-exporters, have again gained prominence on the global stage," a senior official said.
The government hopes to clarify India’s position on these issues, impressing upon Iweala the need to push these issues at the MC. Her meetings with Commerce and Industry Minister Piyush Goyal will also help the government understand what the WTO administration has in mind on these issues, officials said.
Battle lines drawn
New Delhi will again urge Iweala to put her weight behind the global COVID vaccine patent waiver. More than a year ago, India and South Africa had requested WTO members to suspend certain parts of a global pact on IPR, so that the vaccines and testing technology for COVID-19 can be easily shared.
However, it has not made progress due to staunch opposition from a handful of wealthy nations like Switzerland, Norway and the United Kingdom. Last month, Moneycontrol had reported that the global vaccine patent waiver is not expected to move out of the deadlock until the 12th MC.
“They have been emboldened by a non-committal United States, despite the support of almost all member-nations. Since all WTO decisions have to be unanimous, there is nothing that can be done even if a single nation is unwilling,” a senior trade negotiator said.
Officials, however, agree that Iweala has asked rich nations multiple times to at least not stonewall talks on the vaccine waiver. On the other hand, India will also tell Iweala that the debate at whether countries have the right to stockpile food grains and provide subsidies to farmers need to end.
India and other developing nations run major public stockholding programmes to purchase, stockpile and distribute foodgrains to people in need. Richer economies say some stockholding programmes are considered to distort trade when they involve purchases from farmers at prices fixed by the governments, such as India's minimum support price (MSP) programme.
On the other hand, developed nations at the WTO, including the United States, Canada, Australia, and a few European Union members want developing nations, including India, to cap the MSP for farmers, as well as limit input subsidies offered for fertilisers, seeds, pesticides and irrigation. Developed countries have refused to lower high levels of targeted agricultural subsidies provided to their own farmers.
Hope for conciliation
Officials are hopeful that Iweala's visit will also help India cement stronger bonds with the D-G herself and the Geneva-based WTO administration. The hope stems from the fact that India had a difficult, and, at times, combative relationship with previous D-G Roberto Azevedo, who occupied the position for seven years.
"Across the WTO membership, Azevedo was viewed as overtly sympathetic to the developed nations. As a result, he championed new issues, such as e-commerce rules, goaded on by the US. His support for the developing nations was below par and he remained non-committal on many of the developmental issues that required urgent attention," a senior official said.
Iweala is known to be sympathetic towards the cause of developing nations. Apart from being the first woman to be elected D-G, Iweala is also only the second non-white and the first person from Africa to head the WTO.
However, the WTO chief can't announce her position as her primary objective is to build consensus among member-nations and find a solution amicable to all.
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