People's Democracy

Hong Kong Meet: Safeguard People's Interests

As we go to press, both houses of the parliament have concluded a discussion on the forthcoming WTO ministerial conference that begins in Hong Kong on December 13. This is a welcome departure since this is the first time, during the entire course of the WTO negotiations, that the parliament is discussing issues of concern for India and its people before a summit meeting. During the six years of the BJP-led NDA rule, the Vajpayee government consistently refused a discussion before any summit meeting. It was only after the summit meeting that the concerned ministers would make statements before the House, but the opinion of the parliament was never taken into account before the government entered into negotiations.

This current round of negotiations deals amongst others with four important areas on which the CPI(M) has specifically sought the government’s assurance that the interests of the country and the people will not be compromised. These relate to areas of agriculture; non-agricultural market access (NAMA); trade in services; and trade in intellectual property (TRIPS).

The liberalisation of trade in agriculture has already wreaked havoc with the Indian farmers. The spate of suicides and starvation deaths are in one way or another related to the earlier BJP government’s decision to withdraw quantitative restrictions on the import of agricultural commodities. Given the continued agrarian distress, it is imperative that the present UPA government ensures that the Indian farmer is adequately protected. During the course of the debate, the CPI(M) has drawn the attention of the government that India must insist that cereals, edible oils, fruits and vegetables, and dairy products must be treated as "special products" and, hence, protected. Secondly, "special safeguard mechanism" must be applied to all primary products and the primary processed products, e.g., vegetable oils. Thirdly, regarding tariff reduction, India can only agree to a proportional reduction on items other than those listed in the first two categories in a ratio of 3:2 with the developed countries, i.e., if the developed countries reduce by 12 per cent, then we should reduce by not more than 8 per cent. Fourthly, the category of de minimus applying to both subsidies and tariffs, i.e., defining the minimum cannot be reduced any further. Fifthly, pressure must be mounted on the developed countries to substantially reduce their huge subsidies for their domestic agriculture which is seriously distorting international trade. Finally, India must ensure that there shall not be any non-tariff barriers for Indian agricultural exports.

Regarding NAMA, India must resist any pressure to force developing countries to reduce their tariffs. In any case, India cannot and should not reduce the tariff levels any more than the developing countries. With regard to trade in services, India must insist that no social sectors must be covered and no new areas must be opened. Finally, with regard to TRIPS India must insist on a review of the implementation of the earlier agreements which has led to a significant hike in prices of medicines domestically and also adversely affected the development of indigenous science and technology sector.

The CPI(M) has urged upon the government to strengthen the bonds of cooperation and solidarity amongst the developing countries to collectively safeguard their interests from the assaults that will be mounted by the US and other developed countries.

It may be likely that the Hong Kong ministerial summit may not be able to produce any results in terms of concluding these negotiations. A further ministerial summit may need to take place next year. In any case, these are the absolutely essential concerns that the UPA government must keep in mind in the interests of India and its people.