26th July, 2003
Ministry of Commerce & Industry  


INDIA SEEKS TRANSPARENCY IN THE CANCUN PROCESS


India has said that the preparatory process for the Cancun Ministerial Conference of the World Trade Organisation (WTO) as well as the Cancun process should be marked by transparency and inclusiveness, in line with the confirmation at Doha by the ministers of their collective responsibility to ensure internal transparency and effective participation of all the WTO member countries. In a statement at the meeting of the WTO General Council in Geneva on 25 July giving India's views on the " Draft Cancun Ministerial Text" circulated to member countries, Shri Dipak Chatterjee, Commerce Secretary, expressed the hope that the draft text would be developed in a manner so as to reflect fully the views of all members and that wherever there were divergences they would be fully and faithfully expressed in the text.

On the development related issues, Shri Chatterjee said the issue of immediate relevance would be the one giving effect to para 6 of the Doha Declaration on TRIPS and Public Health and stated that India would like the text of 16 December 2002 to be adopted unanimously before Cancun. This would set the member countries on the right path to a productive meeting at Cancun, as the issue was one of great humanitarian consequence, the statement added.

On agriculture, he said the text should reflect the current state of play and reiterate the assurance to developing countries that their concerns would be addressed as part of the core modalities. The statement also pointed out that levels of ambition were not similar in agriculture for all countries.

Referring to non-agricultural market access (NAMA), the statement said that India looked forward to working with the Chairman of the Negotiating Group to explore the possibilities of coming up with modalities that would do full justice to the Doha mandate and address the concerns of developing countries. It also said that the starting point of the negotiations in this area was the Uruguay Round since it reflected the rights and obligations agreed upon by all members.

The statement said that the text on services negotiations seemed to lay emphasis on deadlines in market access negotiations and suggested that it should also focus on the quality of initial offers, particularly regarding improvements in sectors and modes of export interest to developing countries.

Expressing disappointment that the draft text does not specify a clear deadline for completion of work on strengthening of the Special and Differential provisions in the existing agreements, the statement said that India would like to see a very clear deadline specified for completion of the work which should focus on agreement specific proposals with a view to addressing them meaningfully.

On Singapore issues, the statement pointed out that the Doha mandate clearly stated that negotiations on these issues would depend on a decision at Cancun by explicit consensus on the modalities for the negotiations. The modalities would have to be substantive and go beyond the elements identified in the Doha Declaration. These are sensitive issues and not all members are convinced of the need to negotiate these issues in the WTO, the statement said, adding that for a considered decision on these issues it was absolutely essential for each member to be fully aware of the commitments and obligations arising from multilateral agreements and the benefits to member countries. This would be possible only if we can come up with substantive modalities, the statement said.

Earlier, at the General Council session on 24 July, Shri K.M. Chandrasekhar, India's Ambassador to the WTO, presented a paper on an important market access issue in textiles, co-sponsored by Bangladesh, Brazil, Costa Rica, Egypt, Guatemala, Hong Kong, China, India, Indonesia, Macao, Maldives, China, Sri Lanka, Thailand and Vietnam, urging the WTO to ensure that there would be no reduction in effective quota access for developing countries by denial of utilisation in 2004 of the carry forward quota for 2005 when the textile quota regime ends as it would adversely affect exports from developing countries. Presenting another paper on behalf of developing countries, Shri Chandrasekhar outlined a proposal for a specific short term dispensation in favour of developing countries in the form of a grace period of two years during which no anti-dumping investigations on imports of textile and clothing products from developing countries shall be initiated.