Multilateral trade talks at the WTO are at a crossroads following the collapse of negotiations over reducing agricultural subsidies and industrial tariffs. Developing countries insist that any agreement must prioritize development and not threaten food security or deindustrialization. While the US and EU disagree on further subsidy cuts, developing nations want protections for special products and safeguards on imports. For talks to resume successfully, developed countries must grant more agricultural market access by reducing tariffs equivalent to cuts developing countries like India have already made unilaterally. Only by providing overdue opportunities to poorer nations can multilateralism fulfill its potential to govern and benefit global trade.

1. Multilateralism at Cross-Roads
World Trade Organisation, which has completed twelve years of its
establishment is standing at cross - roads with the impasse on Doha Round after
the suspension of the talks on July 24, when G-6 Countries failed to arrive at a
consensus on the modalities on reduction of subsidies on agriculture and tariff
reduction under NAMA negotiations. India stuck to its gun and has been
consistently firm that Development dimension of Doha Round should be at the
core of global-trade talk in letter and spirit as per the decision taken in July
framework (July 2004) and Hongkong Declaration (December 2005).
Subsistence Agriculture, livelihood of farmers and food security is not for
negotiation nor any move endangering deindustrialization in developing
countries is acceptable.
Issue of agriculture is gaining ground as recently discussed in Public Forum of
WTO in September 2006 that food, fiber and fuel are the three important
dimensions of which the biofuel is dominating over the fossil fuel to meet the
energy crisis in future years.
A closure look at the US proposal for reduction of Agriculture subsidies
indicate that the additional commitment on reduction of bound levels would still
enable US to pay more subsidies than the present applied levels. European
Union and US are at loggerheads on each other’s demand for reduction of
subsidies and granting more market access on agricultural goods. The
developing countries represented by 90 percent of the world farmers through
their alliances of G-20 and G-33 are harping on the issues relating to Special
Products and Special safeguard Mechanism.
India has unilaterally made an overall reduction of tariff to almost 55% in the
last few years since Uruguay rounds whereas developed countries have made no
reduction at all during this corresponding period. The principle of special and
differential treatment to developing countries imbibe more concessions from
developed countries and hence they should grant more market access by
reducing their tariffs by at least the equivalence of what we have already done
voluntarily and unilaterally.
WTO facilitates rule based multilateral trading system and there cannot be a
better substitute for it. The Doha Round should be viewed as a round to grant
more market access and more development opportunities to those who have
been deprived so far from the benefits of globalization. Regional Trade
arrangements can only be the pathfinders but full convergence of economic
activities can be only through multilateralism.