Reactions to Manmohan Singh’s choice for Commerce Minister: Anand Sharma

Anand Sharma is India’s new Commerce minister. How is this news being received?

DNA India:

Former commerce minister Kamal Nath will head the much sought after road transport and highways ministry in place of the DMK’s TR Baalu. Kamal Nath had made no secret of his desire to move out of commerce to a ministry with strong domestic content.
This infrastructure ministry forms a key part of the prime minister’s strategy to revive the economy. Under Baalu, road development did not make good progress and the prime minister wants to reverse this.

Singh, however, surprised many with his choice of Sharma as the new minister for commerce. It is a huge elevation for Sharma, who was only one of two ministers of state in the external affairs ministry earlier. Jyotiraditya Scindia is the minister of state for commerce.

Swapan Dasgupta in a CNN-IBN debate:

Political heavyweights have been inducted in infrastructure and social sector, is that the tone of the governance that we will see in this new Government?

“That is difficult to say but the move of Kamal Nath away from Commerce is very interesting. He in fact did not want Road Transport and Highways, he wanted a bigger portfolio. But the fact is that he has got an important ministry which is about infrastructure. The point is that in Commerce we have Anand Sharma and there might have to be adjustments made with WTO in the international scale and that could be one of the reasons,” Adhikari said.

Is that a possible climbdown by the new Government?

“India has taken certain positions which are completely at odds with the US. Now the WTO position was equated with Kamal Nath. He was standing up to American protectionism. So it will be interesting to see what stand the Government will take,” Dasgupta said.

The Economic Times:

Commerce ministry, under Anand Sharma, has been entrusted with the task of taking urgent steps to boost exports. The minister has the dual task of giving suggestions to the finance ministry for budget formulation as well as finalising the foreign trade policy for 2009-10, a senior official in the ministry said.
The free trade agreements with Asean and South Korea are also waiting for final touches to be given by Mr Sharma, he added.
Speaking to ET, Mr Sharma said; “I am humbled by this responsibility that is entrusted upon me at this critical juncture when globally commerce and industry is challenged by the ongoing downturn.”
He also hinted that India will remain aggressive at multilateral trade negotiations. “I will look at all possible measures to ensure and enhance our commercial engagements with the world and contribute in creating a global economy which will be more trusting and not creating protectionist barriers,” he said.

The Times of India:

NEW DELHI: It was at 9.30pm on Thursday that news finally came – the portfolios were out. At first look it seemed along expected lines, but then a few surprises surfaced: there was a new commerce minister in Anand Sharma with the previous one, Kamal Nath, being moved to surface transport. …

The delay in announcing portfolios betrayed that allocation of jobs wasn’t easy. As Sonia Gandhi said, it was a balancing act. Political considerations had to be married with merit to create a team that will deliver. And as Manmohan Singh said, people expected efficiency from the government; “business as usual” would not do.

Will the team deliver? Well, here are its key players. For a government for which rural upliftment is a stated priority, the man on the spot is newcomer C P Joshi who has been given the rural development ministry. Another priority, infrastructure, has the effective Kamal Nath in charge of surface transport (although there were whispers about him being being removed from “glamorous” commerce), and Sushil K Shinde as power minister.
…

If Anand Sharma looked pleased after his elevation as cabinet minister, being named commerce and industry ministry should make him beam. He is now in the big league. Perhaps a background in international law and diplomacy weighed in his favour for a ministry where global trade talks are among top concerns.
…

Jairam Ramesh, the man behind Congress’s poll campaign, is expected to play a crucial role as environment minister as important negotiations on global warming are on the agenda later this year.

…

Industry reactions as quoted in the Economic Times:

India Inc hails PM’s ministerial team
28 May 2009, 2300 hrs IST, PTI

NEW DELHI: India Inc on Thursday welcomed Prime Minister Manmohan Singh’s new ministerial team and expressed hope that they will live up to the expectations.
“People and industry have great aspirations … We hope this team will work committedly to come up with their expectations,” Assocham Secretary General D S Rawat said.
Ficci Secretary General Amit Mitra said, “It is a team of experience, excellency and balance.”
Commenting on the new Commerce and Industry Minister Anand Sharma, Mitra said he has good international networks which will help him in dealing with the critical and important issues of the World Trade Organisation.
“He will make an excellent negotiation as he has great diplomatic experience at the global level,” Mitra added.
Confederation Of Indian Industry (CII) said: “There is a shuffle which is fine as we have worked with them earlier and looking forward to closely work with them. We are happy to see the portfolio distribution.”
“Kamal Nath is known to be a person of great skills … there are great expectations from him … highways development should be highest priority for the economy,” CII Director General Chandrajit Banerjee said.
Nath, who was previously the Commerce and Industry Minister will now hold Road Transport and Highways portfolio.

Reuters India:

Sharma, who was the junior foreign minister in the previous government and has his roots in youth politics, has little experience of economic portfolios and is likely to toe the line set by his reformist boss, Prime Minister Manmohan Singh.

Sharma is an articulate speaker and defended a controversial nuclear deal with the United States in parliament last year.

India is a leading negotiator for emerging nations in the struggling Doha round of talks, and its efforts to protect poor farmers have been one of the stumbling blocks to an agreement.

Sharma is unlikely to soften India’s pro-farmer stand at the talks but could be flexible in giving market access in other sectors, analysts said.

While the global financial crisis may have made market reforms unfashionable, it is the ruling Congress party itself that may prove a bigger obstacle to deep change.

Congress won the election not only because of four years of rapid growth but also because of a pro-farm policy that may make it difficult for the government to make a radical shift in its position at the Doha talks.

India expects the next round of negotiations at the World Trade Organisation (WTO) to start in January or February 2010.

The appointment of Kamal Nath, who is seen as pro-business, as road transport and highways minister signals the government’s intention to speed up the implementation of infrastructure projects which had slowed under the previous government.

India’s new Commerce Minister: Anand Sharma

Well, the wait got over last night and we now know who the new commerce and industry minister is.

Here is a profile of Anand Sharma, (a lawyer incidentally) the new man in charge of India’s WTO negotiations:

Profiles: Anand Sharma is Mr Popular

Press Trust Of India

New Delhi: Anand Sharma, 56, who served the Congress Party as a spokesman for years, will now be India’s chief spokesman at multilateral trade bodies like World Trade Organisation seeking fair deal for the country.

His well-measured words and oratory skills, which got polished as the Minister of State for External Affairs, must have weighed heavily on Prime Minister Manmohan Singh’s decision to give him the Commerce portfolio.

That is not enough. As a combined portfolio of Commerce and Industry, Sharma would also be in-charge of attracting foreign direct investment into the country at a time when money is hard to come.

He will also be presiding over policies that have to be friendly to the global investors and the fledgling domestic industry.

Sharma’s key challenge would be to put India’s shrinking exports back on track. Exports have been declining sharply for the last six months under the impact of the global meltdown.

Many believe he has been rewarded for his services to the Congress, particularly his election campaign strategies.

Congress leader from Himachal Pradesh, Sharma was part of the party’s ‘War Room’, which had been set up to spearhead the party’s election campaign.

It was his idea of using the ‘Jai Ho’ song from Oscar winning movie Slumdog Millionaire during campaigning to strike a chord with the masses. It apparently served the purpose, even though rival BJP tried to counter it with Bhay Ho slogan.

A well-known face of the Congress, he has been the party spokesman for several years when the party was in the Opposition and some time after it came to power in 2004.

He was made Minister of State for External Affairs in the outgoing government in 2006. After PR Dasmunsi fell critically ill last year and was indisposed indefinitely, Sharma was given additional charge of Minister of State for Information and Broadcasting.

A lawyer by profession, Sharma is a member of Rajya Sabha. He has been the member of the Upper House on four occasions earlier also. He has also been member of the Defence as well as Business Advisory Committees.

A prominent leader of the student and youth movement in the country, he was one of the founders of Congress’ students wing NSUI.

Sharma first came to limelight during Rajiv Gandhi days as chief of the Indian Youth Congress, which was a period when the youth body was proactive on the issue of apartheid in South Africa, which is now a thing of the past. Incidentally his wife Zenobia is from South Africa.

Kamal Nath is now cabinet minister for road transport and highways. He will now be more engaged with domestic infrastructural development rather than negotiations at the international stage. I will do a follow-up post on reactions to this news.

Kamal Nath might not be commerce minister

Moneycontrol is quoting CNBC-TV18:

Will Kamal Nath get Commerce Ministry this time?

Published on Wed, May 27, 2009 at 20:48 , Updated at Wed, May 27, 2009 at 21:51
Source : CNBC-TV18

Kamal Nath has been a high profile minister of Commerce and Industry, and has made a name for himself as a tough trade negotiator. But he may not return to Udyog Bhavan. CNBC-TV18‘s Economic Policy Editor Vivian Fernandes reports.

Here is a verbatim transcript of Vivian Fernandes’ comments on CNBC-TV18. Also watch the accompanying video.

We do not know where the previous Commerce Minister Kamal Nath is going but we know where he is not going. He is not going to be in Udyog Bhavan. Now Kamal Nath had made a name for himself as a tough trade negotiator. The WTO talks broke down in Geneva last July because of the tough stand he had taken to protect Indian farmers and there is a feeling that India might have to make a climb-down and Kamal Nath would not like to be that person. But more than that I think Kamal Nath is a mass leader, he would like to be recognized as a politician of consequence which is why he wants a large domestic footprint.

There was talk of the industry portfolio being carved out as a separate ministry with additional charge of small and medium enterprises and heavy industry portfolio being added to it but such a minister sounds large but it is not weighty enough. So I think Kamal Nath wanted the Rural Development Ministry but we understand that, that is going to go to CP Joshi who is the Congress President in Rajasthan.

The other ministry that Kamal Nath fancied was the Infrastructure Ministry where there is a lot of broken things to be mended, for example, surface transport or even power and he would not be averse to the idea of being HRD Minister as well.

But I spoke to him, and he played his cards very close to his chest. He said that he would be comfortable with whatever Sonia Gandhi and Prime Minister Manmohan Singh deemed suitable for him.

Commerce Ministry to be split into industry and trade? Kamal Nath might not get trade ministry?

The Economic Times reports that the new Cabinet might have separate ministers for industry and trade departing from the usual practice of one ministry looking after both industry and commerce including trade. There were hints earlier about an imminent restructuring of the commerce ministry. This might be a good move, as both trade and industry are big enough responsibilities to deserve separate ministers. How will this affect the influence of industry on trade negotiations? This might also mean that Kamal Nath might not be the trade minister. Another name being mentioned is Mr. Kapil Sibal, a lawyer turned politician who was minister for science and technology in the previous cabinet. Here is the report in full:

Commerce, industry likely to part ways
26 May 2009, 0241 hrs IST, Amiti Sen, ET Bureau

NEW DELHI: The government is looking at splitting the commerce and industry ministry into two ministries with two full Cabinet ministers. The commerce ministry will deal primarily with all trade-related areas previously under the commerce department, and the responsibilities of the industry ministry will be much more than what was earlier held by the department of industrial policy and promotion, a government official has said.
In addition to the administration and monitoring of industrial growth and laying down of foreign direct investment guidelines, new sectors, such as heavy industry and micro, small & medium enterprises, will also come under the purview of the new industry ministry being considered.
“The government is seriously considering dividing the commerce and industry ministry into two. Names of the Cabinet ministers, who will head the two separate ministries, are likely to be announced on Tuesday,” an official, who did not wish to be named, said.
Former commerce and industry minister Kamal Nath is a likely candidate for the industry ministry, another official said on conditions of anonymity. The front-runners for the commerce ministry include Salman Khursheed and Kapil Sibal.
If Kamal Nath is not satisfied with the industry ministry, despite the added responsibilities, he could be given the human resources development ministry, the second official added.
Commerce, as an individual ministry, will continue to hold a lot of weight, as important areas, such as export-import policy, bilateral trade negotiations, the World Trade Organisation and the special economic zones (SEZs), will fall under its purview.
With senior politicians in the UPA scrambling for important portfolios, the split in the commerce and industry ministry can also be looked at as a move to accommodate more.

The Indian Express reports:

Kapil Sibal, Kamal Nath and Moily are chief stars of every ministry speculator, having been assigned almost every important ministry below Raisina Hill. Kamal Nath, who was hoping to go up the Hill, is now slightly disappointed and is learnt to have held lengthy meetings with Finance Minister Pranab Mukherjee but came out with no firm answer. In fact, at one point, Defence Ministry mandarins had the bio-data of both A K Antony and Kamal Nath ready while the suspense was on.

Berths now being tossed around between the three are Law, Commerce, Roads, Shipping and Transport, Human Resource Development, even Environment and Forests. While Kamal Nath is said to be not so keen to return to his old beat despite the persuasion, Sibal makes no bones about the fact that he will not accept the Law portfolio.

Moily, incidentally, has no such preference but does not particularly like being in the dark. “I am more eager than you to know what is my ministry, but no phone call has come,” he said.

Last night CNN-IBN was reporting:

CP Joshi, the Rajasthan Congress President, will be the new Rural Development Minister, Kamal Nath will get Commerce and Company Affairs, Kapil Sibbal is likely to get either HRD or Commerce portfolios while Ambika Soni, the tourism minister in the previous government, could now be the new Health Minister.

Media: Commerce minister most likely Kamal Nath

Todays media reports are giving stronger indications that Kamal Nath is likely to be named commerce and industry minister in the new cabinet. We will of course know for sure in a few hours.

The Business Standard:

Manmohan Singh is a lucky Prime Minister, for about a half of his old 29-member Cabinet has deserted him. It is not just that Lalu Prasad and Ram Vilas Paswan walked out of the United Progressive Alliance, as did Anbumani Ramdoss of the PMK, but also that some ministers whom he may have wanted to drop have conveniently lost their elections. That and his willingness to be rid of manifest non-performers like Arjun Singh explain why Dr Singh has been able to bring seven new faces into his Cabinet of 19 colleagues. However, people like SM Krishna, Veerappa Moily and Mamata Banerjee are not “new” faces in Indian politics. So the primary message from Friday evening’s swearing-in was not change but continuity—a fact confirmed by the half-dozen portfolios announced on Saturday. Pranab Mukheree at finance, P.Chidambaram at home and AK Antony at defence are natural choices, and Mamata Banerjee has been at Rail Bhavan before (though her first comments suggest that she has not improved her economic literacy). In addition, if Sharad Pawar stays in Krishi Bhavan though with agriculture (food seems to have been taken away, perhaps because it includes sugar), Kamal Nath in Udyog Bhavan, and Murli Deora in Shastri Bhavan (with petroleum and natural gas), the continuity principle will be seen as over-riding the change agenda. The natural question then would be whether that is enough to give the government a new wind. The answer is that, when half the old slate had been wiped clean, there should have been more evidence of substantive change.

The Telegraph (India):

In line with a plan to keep as many infrastructure ministries as possible with the Congress, M. Veerappa Moily could get surface transport, highways and shipping; Sibal is tipped to get human resource development; C.P. Joshi, a new face, could be given rural development; Ghulam Nabi Azad is being considered for parliamentary affairs, which he has held before, and steel; B.K. Handique could get heavy industries; Kamal Nath is expected to retain commerce and Jaipal Reddy urban development; Anand Sharma, who had held independent charge of information and broadcasting as junior minister after Priya Ranjan Das Munshi fell ill, could keep the portfolio; Ambika Soni could either get health and family welfare or retain tourism and culture; and Meira Kumar is expected to return to social justice and environment.

DNA:

As more ministers get allocated portfolios over the week, statements made by individuals of key ministries like finance, commerce and oil would be closely watched, say experts.

Deepak Jasani, head of retail research, HDFC Securities, says the market would watch other appointments to the cabinet.

It’s back to basics as political dust settles

“Telecom, infrastructure power and commerce would be the key ministries.”

“One area to watch out is the commerce ministry. Kamal Nath was holding the portfolio. But nothing was announced. It is a key portfolio as exports are under pressure,” says Gopal Agrawal, head of equities at Mirae Asset Management.

Kamal Nath speech at National University of Singapore

Here is an interesting speech by India’s former Commerce and Industry minister Kamal Nath at the National University of Singapore in 2008. Mr. Nath might well be India’s Commerce Minister for another 5 year term …

 

Kamal Nath on Doha round prospects, Indian reforms, export stimulus measures and more …

We still don’t know who will be given charge of India’s commerce ministry, but this announcement can be expected by Tuesday. My sense is that Mr Kamal Nath himself is keen on continuing as Commerce minister and conclude the unfinished Doha round as well as FDI and other industrial  sector reforms.

In an interview to CNN-IBN (see the text here) Mr. Nath spoke about the prospects of the Doha round:

Rajdeep Sardesai: Between 2004-09, Kamal Nath came to be identified with the World Trade Organisation (WTO) talks. Do you believe that with this clear mandate you will have a freer hand in the sense negotiating at the WTO you should be the commerce minister. Do you see a quick completion of the Doha round?

Kamal Nath: I think India needs to have a rule based multilateral system, we have a big stake in that. But today I think the Western countries who are bigger proponents of this are the ones getting cold feet and not India.

Rajdeep Sardesai: Yes, exactly that is why the US democratic administration seems protectionist.

Kamal Nath: That is what I am saying, they are getting cold feet not us.

On FDI:

Rajdeep Sardesai: Just before the elections, you had amended the Foreign Direct Investment (FDI) policy through a press note. Now investments made by a company registered in India in which a foreign company has a less than 50 per cent stake will not be considered as FDI. Some believe this has allowed foreign companies to breach sectoral limits, was this the objective to open up?

Kamal Nath: When we have a global recession, we have to make India a good investment destination. I want to separate ownership and control and this seeks to do that and get more investment.

On FDI in retail:

Rajdeep Sardesai: In your first tenure, between 2004-09 there was this ghost of Left which was always haunting you. This time it doesn’t even exist, will there be FDI in the multi-sector retailing or do you believe that this might affect the kiranewalla (small grocery shop) and that might be a concern that your fellow Cabinet Ministers will against you?

Kamal Nath: It is not FDI, it is big versus small and if it is big you can have a multi-brand Indian company, you have Reliance, ITC etc.

Rajdeep Sardesai: Will you allow FDI?

Kamal Nath: No, I am not talking about retail. As long as FDI doesn’t displace existing employment it is good but talking about the retail sector it is a very grey area.

Rajdeep Sardesai: You see it as a grey area, I thought at one point of time you believed that it would help Indian agriculture.

Kamal Nath: No, we cannot generalise on retail. Retail is not cement and motor, it is technology. If we can have access to retail technology and in fact we must not be looking at man at the moment, we must be looking for the niece and the son and the daughter. And that is the key thing to look at.

On liberalisation (FDI) in education:

Rajdeep Sardesai: The Commerce Ministry had also been wanting to liberalise high education but the HRD Ministry previously under Arjun Singh was not helpful. He is no more there but the fact is that will it happen now?

Kamal Nath: I can’t say that this will happen, I can only say that we have to ensure that our youngsters have the access to the best education in India. Why are we sending thousands of youngsters abroad, why can’t they stay here and study at a fraction of the cost?

On the need for export stimulus measures:

Rajdeep Sardesai: Exports, a critical area again. The export sector has been badly hit by recession. Your (Commerce) ministry had proposed a one year exemption in the payment of the fringe tax to these export oriented companies. Will we see that?

Kamal Nath: Exemption is about competitiveness and cost. Today, if the economy is in recession we can’t plan a package for Europe or the US. We are going to ensure that all levies and taxes are refunded and are not there for export.

Rajdeep Sardesai: But the aam aadmi is the one who is being hit. Do you think the time has come for a comprehensive package for the export sector?

Kamal Nath: There is a need for a comprehensive package to refund taxes, levies on anything that is being exported. Today you go anywhere in the world and you buy something from a shop, you refund immediately. So, you must have all taxes and levies because no taxes and levies are exported.

On differences between the Commerce and the Finance ministeries (in the previous administration the Commerce and Finance ministries had differed over SEZs and over sops for exporters):

Rajdeep Sardesai: Last time there was a feeling that the Commerce Ministry and the Finance Ministry were not on the same track. Will it be different this time with Pranab Mukherjee as the Finance Minister?

Kamal Nath: Well, I think the job of the Finance Ministry is to collect the revenue and see that they do resource management so any Finance Ministry would do that. But you need to weigh it off, you may not export and you may be having an economic impact because of that.

On financial sector liberalisation:

Rajdeep Sardesai: The new Government this time is largely free of the pressures of allies and therefore you will expected to push it with reforms. Last time, every time you were asked about reform you said look my hands are tide. Your hands are no longer tide, will it be different this time?

Kamal Nath: Let’s not say that there were no reforms in the last government. There were reforms in the financial sector which we didn’t do but let us recognise this. We should remember that the reforms that were asked by those financial icons of the Western world, the ones which were wound up.

Rajdeep Sardesai: So, are you among those who think that it is good to be cautious about financial sector liberalisation?

Kamal Nath: No, it depends which reforms we are talking about. We are looking at the reforms which are India specific; we can’t be talking about reforms all over the world. Today the most important reform is the reform in the governance. Reform in our Labour Act, the labour laws must be made employment generating.

On labour law reforms:

Rajdeep Sardesai: So, you would support reforms in labour laws which allow companies to hire and fire easily?

Kamal Nath: We must recognise this that for example if a textile company wants to hire some people to complete an order in four months but they can’t take that order because he can’t hire them for four months. So at that point of time, we are losing on that amount of employment.

Rajdeep Sardesai: But will the politicians allow this kind of labour laws reform? The problem is this is where the politics seem to clash with good economics.

Kamal Nath: No, I am all for the reform in labour laws which generate employment, provide employment security. We have to have this because employment generation is our No 1 priority with the young population.

On Special Economic Zones:

Rajdeep Sardesai: But let’s look at land because there has been controversy over Kamal Nath’s policies as commerce minister when it came to the Economic Zones. You were looked at someone who was liberally granting Special Economic Zones (SEZs), some suggested that it was little more than a land scam. And now you have got Mamata Banerjee who after Nandigram and Singur is going to get tough with any attempts made to liberalise land acquisitions.

Kamal Nath: Let us not talk in the abstract. There are SEZs today on the ground, you can measure easily how much investment is coming to the nearest rupee. We can measure how much employment has been generated, how much export has happened so all that are stories of the past. There are concerns in high density states.

Rajdeep Sardesai: But after Singur and Nandigram, won’t there be pressure to sort of modify your land acquisition policies, your own minister will suggest that.

Kamal Nath: I am all for that and that is what I am suggesting that there was a Cabinet committee, there was a group of ministers selected for that. That has moved the new land acquisition rehabilitation suggestive policy and that parliament had approved that and now this Parliament will take it up.

The videos of this interview (in 5 parts) can be watched here.

Who will be India’s new commerce minister?

With Dr. Manmohan Singh’s new cabinet due to be sworn in tomorrow, speculation is on about who will get which ministry portfolio. Readers of this blog would be interested in whether Kamal Nath will continue as Commerce minister. The Commerce minister is responsible for India’s WTO and other trade negotiations.

Until yesterday, the buzz was that Mr. Nath might be promoted to external affairs minister, leaving the commerce ministry for someone else. One name being mentioned was that of Mr. Jairam Ramesh who was the junior minister for commerce under Kamal Nath.

Todays papers however seem to indicate that Mr Nath might continue with commerce and that Mr. Ramesh might become power minister.

The Hindu reports:

The Commerce Ministry is to be restructured but could well still be headed by Kamal Nath.

This is interesting news. How will the commerce ministry get restructured?

Meanwhile the Times of India expresses the hope that freed from the demands of the left parties, the new administration might pursue a “more reasonable line” in the Doha negotiations. An extract:

With trade, India adopted the spoiler’s role at World Trade Organisation conferences, playing the victim of rapacious developed countries. The rhetoric employed was from another era, when India played a prominent role in the Group of 77, the commercial foil of the Non-aligned Movement. Without the Left calling the shots, its acolytes in the Congress-led ruling coalition will find themselves adrift. It is likely that India will pursue a more reasonable line. 

This is what Kamal Nath told the Washington Post:

“We now have the mandate for a renewed push for economic reforms,” said Kamal Nath, a senior leader of the Congress party who served as commerce minister in the previous government. “We have to open up more and take some hard steps to spur the economy because of the global recession.”

Meanwhile the Economic Times carries an article on how the Commerce ministry bureaucrats are preparing for the new minister to take charge. This is one very enthusiastic ministry. Here is the report in full:

Commerce babus just can’t wait to revive work
21 May 2009, 0236 hrs IST, Amiti Sen, ET Bureau

NEW DELHI: Though the last word on Kamal Nath retaining his commerce and industry portfolio is still to be heard, it seems that the bureaucracy has got down to business.
Commerce department officials are giving finishing touches to presentations on issues ranging from falling trade to the stimulus packages to the annual foreign trade policy to India’s WTO stand to free trade agreements (FTAs). The aim is to give the new minister a fair idea of the happenings in the department and the road ahead, a senior commerce ministry official said.
“All officials dealing with various issues falling under the purview of the commerce department had been asked to bring out capsules on what has been happening in various sectors and what remains to be done. The work is almost finished,” the official who did not want to be named said.
With exports falling for seven straight months and the situation not expected to improve till September, some quick decisions are called for by the new government.
“The situation is grave. We have ensured that the new minister will be updated on the global economic situation and the effect on domestic business without any loss of time, this will also enable the new minister to come up with an effective foreign trade policy,” the official added.
Issues like extension of the interest rate subvention or discount given to exporters from select labour-intensive sectors beyond September 30 and continuation of the higher reimbursements given to exporters under the DEPB (import duty reimbursement) scheme beyond June 30 need to be decided. The government also needs to take a call on whether more sectors and countries need to be covered under the focus-product and focus-market schemes, where cash incentives are given to exporters.
On the overseas front, there are two bilateral agreements that are waiting to be signed. Signing of the FTA with ten-member ASEAN, which had been pushed by Prime Minister Manmohan Singh, is long overdue. The FTA with South Korea too needs to be signed without delay.
Special economic zones (SEZs) is another area that needs immediate attention. With the slowdown hitting SEZ investments, investors who have asked for more time to execute projects need to be dealt with sympathetically. There is also a need to settle issues such as giving infrastructure status to the zones.

Direct effect of WTO law in India

Here is an interesting SSRN paper on the issue of the status of WTO law within the Indian legal system.

Chowdhury, Nupur,The (Absence of) Direct Effect of WTO Law – Current Developments within the Indian Legal System(May 20, 2008). Available at SSRN: http://ssrn.com/abstract=1136585

Abstract:
This chapter gives an overview of the status of international law under the Indian Constitution and its implications for the status of the WTO Agreement and the covered agreements within the Indian legal system. The Indian legal system is dualistic and international legal instruments ratified by the country become part of the national system only when it is transposed into national law. However such a strict interpretation has often been circumvented by the Courts in favor of a direct applicability of international law on the basis of the principle of consistent interpretation as provided for in the Constitution. In that sense it is interesting to note that notwithstanding the dualistic nature of the legal system, the Courts have applied the consistent interpretation, supremacy and the (in)direct effect principles in a varied number of cases to strengthen the conformity of national law with international law. In that sense, the relationship between these principles is dynamic and can be temporally located within the different trends of judicial activism in the Indian courts. Amongst the WTO agreement it is the TRIPS agreement that has been at the center of most legal disputes. Given the considerable economic interests of the Indian biotechnology sector (drugs and pharmaceuticals) and therefore the high stakes, in concomitance with the considerable textual ambiguity, which the TRIPS amendment has created, this is not surprising. It also underlines the currency of such a debate on the application of the principle of direct effect in the present context of the Indian legal system.

Swadeshi Jagaran Manch convener calls the WTO and globalisation an “artificial” structure that cannot last

The popular perception about the WTO in India has been the subject of discussion in seminars and conferences. WTO scholars often express the view that the Indian public and civil society do not understand the WTO well.  And, that therefore opposition to the WTO is often a result of such unfamiliarity and ignorance. I sometimes blog about perceptions about the WTO that different domestic Indian actors have. Here is yet another constituency in India that seems to view the WTO as unsustainable. But does the WTO really propagate homogeneity?

S Gurumurthy, who is convener of the Swadeshi Jagaran Manch had this to say about globalisation and the WTO in a press interview:

Q. In one of your earlier interviews, you told rediff.com that globalisation was not sustainable.

Answer:

Who is talking about globalisation today? Today, it’s just not environmentally, ecologically and culturally sustainable. I have always maintained that it was not economically sustainable, because it is contrary to the very meaning and definition of economics which is associated with frugality.

It is an executive class economics different from the economy class which brings out the difference between economics and excessiveness.

Moreover, globalisation disregards the existence of countries; they talk about a global society, global rule, global citizens, global villages, etc. It was an absolutely idealistic idiosyncrasy. That is gone.

Who is talking about the WTO? I told you long ago that the WTO will not last. If you create an artificial structure, it will not stand. People in different parts of the world have their own models of living; you cannot homogenise them, make them wear the same dress, eat the same food, or see the same cinema or have the same goals. This is what West-centric globalisation attempted, and got the first taste of it in the last four, five years.

Mr Gurumurthy is a leading Chartered Accountant and is closely associated with the Bharatiya Janata Party (BJP). He is a member of the taskforce created by the BJP to look into the issue of black money stashed away in secret foreign bank accounts.

The Swadeshi Jagaran Manch is an Indian political organisation that propagates the market philosophy of Swadeshi, which means self-reliance and favors preference for the neighbourhood or local over the foreign in economic governance and management. It is thus the ideological opposite of globalization. Here is what Wikipedia says about the Swadeshi Jagaran Manch:

The Swadeshi Jagaran Manch is an Indian political organisation committed to the promotion of Swadeshi (Indigenous) industries and culture. It is usually recognised as a part of the Sangh Parivar of Hindu nationalist organisations. SJM came into existence on November 22, 1991 at Nagpur. Representatives of five national level organisations including Bharatiya Mazdoor Sangh(BMS), Akhil Bharatiya Vidyarthi Parishad(ABVP), Bharatiya Kisan Sangh (BKS), Akhil Bharatiya Grahak Panchayat (ABGP) & Sahkar Bharati took this decision in the presence of Shri Dattopant Thengdi, founder of BMS. For proper execution of movement a Central Committee was formed and Dr. M.G. Bokare (Ex Vice Chancellor, Nagpur University) was given the responsibility of convenor. On 12 January 1992, Birth Anniversary of Swami Vivekananda, the first massive campaign against the economic policy of central government started. People from all walks of life with distinct ideologies came together on the SJM platform to fight against economic imperialism. Subsequently literature on Swadeshi, intellectual property rights. General Agreement on Tariffs and Trade and economic imperialism of multinationals was published and distributed to popularize the cause of SJM. Later on many other organisations joined the forces for Swadeshi like Vanvasi Kalyan Ashram, Vidya Bharati, Rashtra Sevika Samiti, Bharatiya Sikshan Mandal etc. Today SJM has become an all-encompassing movement with more than 15 organisations associated with it.

Some international relations & political science research on India in the WTO

See:

Gupta, Surupa. "Developing Country Interests and Coalitions-Building at WTO Negotiations: Some Lessons from India’s Experience" Paper presented at the annual meeting of the International Studies Association, Le Centre Sheraton Hotel, Montreal, Quebec, Canada, Mar 19, 2004 Online <.PDF>. 2009-04-17 <http://www.allacademic.com/meta/p73469_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Despite recurrent last minute defections, developing countries such as India continue to rely on forming coalitions with other like-minded countries during multilateral trade negotiations. This paper seeks to explain why they do so and to assess the extent to which such a strategy brings benefits by looking at India’s experiences during 1995-2001. It argues that in India’s case coalition formation should be seen within the context of India’s search for a new strategy for multilateral trade negotiation after the conclusion of the Uruguay Round. The impetus for the new strategy came from the perceived “selling-out” of India’s interests during the Uruguay Round. That experience also generated a negative perception in India about the World Trade Organization, a perception that was further strengthened as its agenda was sought to be expanded by the United States and the European Union beginning in 1995-96. The attempt at enlarging the agenda also strained the meager negotiating resources that India had at the time. On each of the new issues that were proposed, India’s position was farthest from that of the US and the EU. It was obvious that India would have to work hard to protect its interests and in the absence of adequate resources of its own, working in coalitions turned out to be an obvious choice. The strategy has allowed India to have a much larger voice in these negotiations than what we would expect looking at its global trade share. In the area of furthering Indian interests, the success of the strategy has been more modest. .

Friesen, Kenneth. "Understanding Globalization in India: A Flattened or a Layered World?" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 Online <APPLICATION/PDF>. 2009-04-17 <http://www.allacademic.com/meta/p180435_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Understanding the nature of globalization in India is more than just understanding an
economic definition of poverty – it includes an understanding of the culture and history of
India and ways in which globalization means adding layers of complexity within India, not
simply replacing one India (traditional) with another (modern). This paper situates the
economic liberalization policies of the Indian government from the early 1990s to the
present in the context of the larger globalization debate. The paper then puts the context
around which the economic reforms were taken within India’s recent development history.
After understanding this greater context the paper reviews several recent studies that have
examined whether the economic growth in India has come at the expense of growing
inequality.

Gupta, Surupa. "Protecting the half-billion: Domestic and international determinants of India’s agricultural trade policy at the WTO negotiations" Paper presented at the annual meeting of the Political Research Online, Town & Country Resort and Convention Center, San Diego, California, USA, Mar 22, 2006 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p99692_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Although economists have argued that India has a comparative advantage in several farm products, India’s position in the WTO negotiations in agriculture has been primarily defensive. This paper explains India’s defensive posture by tracing it to a new consultative mechanism for decision-making on WTO issues that explicitly recognizes the role of the agriculture ministry in agenda-setting. India’s definition of its core interests and its ability to maintain its defensive position have also been shaped by the multilateral trade regime itself and by the changing coalitions within it.

Sinha, Aseema. "Global Linkages and Domestic Politics: Trade Reform and Institution Building in India in Comparative Perspective" Paper presented at the annual meeting of the Political Research Online, Town & Country Resort and Convention Center, San Diego, California, USA, Mar 22, 2006 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p99690_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper examines how the World Trade Organization (WTO) affects institutional development and policy responses in India. India is a country traditionally resistant to external pressures but in which participation in an international organization stimulated a transformation in trade policy processes and procedures, unleashed a new bureaucratic politics, institutional innovation, and activation of policy-expert linkages. I argue that we go beyond zero-sum assumptions in understanding the relationship between globalization and national state institutions. Key rules of international organizations increase transaction and sovereignty costs for states, which may catalyze new domestic capacities and create the impetus for new governance mechanisms. I demonstrate this argument with an analysis of India’s engagement with the WTO and with illustrative evidence of China, Brazil, Japan, and United States’s interaction with the WTO. The evidence is drawn from 18 month fieldwork in India, Washington DC, and Geneva, a newspaper database, and reliance on 100 interviews. [149 words]

Gupta, Surupa. "Tying Hands and Cutting Slack: Comparing India?s Negotiating Positions in Agriculture and Services using the Two-Level Game Framework" Paper presented at the annual meeting of the Political Research Online, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p180085_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: How states behave in the context of a negotiation can best be understood within a domestic-international framework such as two-level game which focuses on international and domestic-level inputs simultaneously and attempts to understand the strategic interaction between them. However, the literature on two-level games, with some exceptions, focuses primarily on bilateral negotiations between developed states. Studying developing country responses in the context of multilateral negotiations requires us to both modify certain assumptions and question some of the conclusions. The existing literature looks at cases where the negotiations are initiated by the executives of states engaged in the negotiations and thus assumes that at least at the agenda-setting phase, the executive has substantial autonomy. This paper, which compares the processes through which India?s negotiating agenda on agriculture and services were arrived at, focuses on negotiations, which were not initiated by the Indian executive but were mandated by the WTO. The very fact that the executive is responding to an international regime stirs up domestic political actors, including but not restricted to specific interest groups whose interests may be affected. India?s negotiating agenda in the two sectors were thus shaped simultaneously by international political and economic factors as well as domestic politics within India. Contrary to the literature?s finding that the executives prefer not to tie their hands, the Indian government made an explicit attempt to involve relevant stakeholders. The paper analyzes how such domestic-international interactions and the executive?s attempt at involving stakeholders have shaped India?s negotiating response and in process, suggests modifications in the two-level game framework.

Campos, Taiane. "Joining the Domestic and the International: Brazil and India in the Building Process of G-20" Paper presented at the annual meeting of the Political Research Online, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p253569_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The aim of this paper is to analyze the factors that determined the position of Brazil and India in the G-20 formation. In order to do so, it will be analyzed a set of factors that determined the size of the win set of both countries. The focus lays on domestic political institutions as well as on the negotiation strategies of both countries in G-20. To be able to understand the G-20, we have to consider the diversity of the economic, social and political conditions that characterizes its members and, consequently, their interests. The Brazilian and Indian positions deserve special attention either because of their political performance as interlocutors of the group or because of their difference of interests in agricultural agenda in WTO.The initial supposition is that these two countries have divergent interests on the negotiation process of agricultural trade. It would be reasonable to think that India would automatically align with USA and EU in defending mechanisms to protect this sector, which would place India in an opposite side from Brazil. However, what we see is an alignment between them and the formation of a coalition against those other proposals. The question which guides this research concerns the factors that made possible the formation and maintenance of G-20 despite the apparent conflict of interest between Brazil and India. This research is structured within an analytical framework that seeks to combine the domestic and international factors in the understanding process of formal and informal international agreements structuring.

Mukherji, Rahul. "The Politics of the Shift to Foreign Investment Friendly Regulation: The Case of Indian Telecommunications" Paper presented at the annual meeting of the Political Research Online, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p251887_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper explores the political economy of three significant policy decisions taken by the Congress – United Progressive Alliance (UPA) government between November 2005 and February 2006, which have improved the incentives for foreign investment in India’s telecommunications sector. This was a notable departure from the past when policies had clearly favoured domestic investment over foreign investment. The paper argues that these decisions occurred due to the increasing sensitivity of the Department of Telecommunications (DOT) to the needs of the relatively smaller Indian service providers, who were dependent on foreign capital. They were not driven by a crisis of investment or foreign pressure to change policies in India’s telecommunications sector. The paper challenges explanations for embracing globalization such as those based on economic crisis or those based on a clear technocratic consensus. The political economy of this shift to foreign investment friendly regulations in the telecommunications sector suggests that economic reforms in India can occur in normal times. They depended to a large extent on the nature of the political economy that the ruling party was willing to support.

Moore, Candice. "Multilateralism and Trilateralism in the IBSA Partnership: Tensions and Congruities" Paper presented at the annual meeting of the Political Research Online, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p251820_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper seeks to examine the tensions between trilateralism and multilateralism in the IBSA partnership. While one of the stated goals of the partnership is multilateralism and the reform of the United Nations (IBSA Communique, 2005), the trilateral partnership that IBSA embodies appears antithetical to the representation of broader interests in each member’s region. This issue came to a head in the months preceding the debates on UN reform in September 2005, when India, Brazil and South Africa each voiced their interest in permanent representation on the UN Security Council, but failed to win the support of their regional neighbours. More recently, it is evident in the prominence of India and Brazil in exclusive trade talks with the EU and US to save the Doha Development Round. The paper draws on the middle power literature, which sees middle powers as committed to multilateralism, but problematises this commitment by considering the growing economic and strategic significance of these states. Trilateralism is not pursued to the exclusion of North-South links, as evidenced in Brazil’s and India’s increasing closeness to the US. It is thus not an alternative to robust North-South relations, as older forms of South-South solidarity (NAM and G-77) were portrayed. The paper concludes thus that the IBSA partnership is not a successor of older forms of South-South solidarity premised on multilateralism, but rather a vehicle for the development and increased levels of participation in international affairs of its three members.

Sinha, Aseema. "Change from Inside-Out or Outside-In? Trade Reform in India’s Closed Economy" Paper presented at the annual meeting of the Political Research Online, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p253177_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: What makes trade reform possible in a traditionally closed economy? Economic reform and structural adjustment have been global movements for more than a decade by now, yet trade reform remains one of the most difficult arenas of policy change in many developing countries. The distributional politics of trade, and the rise of protectionist pressures in the advanced countries of the world, have contributed to a backlash against serious trade reform in many countries. Despite countervailing pressures in favor of rising protectionism, India’s trade regime has undergone serious reform in the last decade, encompassing policy changes, outcomes, and institutional changes. During these years a party espousing economic nationalism and fear of the open economy has ruled the country. This empirical puzzle forms the starting point of this paper. I ask: how has trade reform been consolidated in a traditionally closed economy like India? I argue that crucial domestic societal changes are a necessary precondition for changes in state’s attitudes; yet, external forces may change the preferences of domestic forces, as well as change the balance of power among interest groups. These, new coalitions in favor of greater global integration, come into contact with a activated state; these intra-group/intra-class factors combine with state-class transformations to effect change in trade orientation and reform turning toward a global openness. This paper, thus, highlights important mechanisms through which global trade integration and institutions shaped the domestic politics of trade. The international trade institutions not only constrain behavior of domestic actors, but also constitute interests and identities of key domestic actors. Moreover, participation in global trade negotiations changes the preferences of some producers, and strengthens the hands of recently created, externally oriented, domestic producers by bringing them closer to the national-state actors and by encouraging collaborative strategies between business and state actors.

Alden, Christopher. and Vieira, Marco. "The New Diplomacy of the South: Brazil, South Africa, India and Trilateralism" Paper presented at the annual meeting of the Political Research Online, Hilton Hawaiian Village, Honolulu, Hawaii, Mar 05, 2005 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p69301_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: The failure of the negotiations at the World Trade Organisation (WTO) ministerial in Cancun in September 2003 could well have marked a turning point in the emergence of a new post-Cold War paradigm. Indeed, while much has been made of the realist ‘world restored’ (or its converse) in the aftermath of 9/11, surely of greater significance is the reassertion of the South-North divide as a defining axis of the international system. In this context, the emergence of coterie of South countries actively challenging the position and assumptions of the leading states of the North is an especially significant event. What has been missing from most of the international accounts of the Cancun meeting and its repercussions is a recognition that the positions adopted there were part of a broader strategy formulated and implemented by key states within the South. This activism on the part of three middle income developing countries in particular – Brazil, South Africa and India – has resulted in the creation of a ‘trilateralist’ diplomatic partnership, itself a reflection of broader transformations across the developing world in the wake of globalisation. The establishment of this new diplomatic partnership of the South begs a number of questions about the states involved, the nature of their co-operation and its relationship to international system as a whole. Specifically: What are the motivations and dynamics of ‘trilateralist’ co-operation amongst these middle income developing states? What role does ideology play in this process? Given the uneven record of co-operation across the South and the growing economic diversity between developing countries, how sustainable is the ‘trilateralism’ initiative? This paper will examine the rise and promulgation of the co-operative strategy known as ‘trilateralism’ by regional leaders within the South. Specifically, it will first provide an overview of the theoretical approaches to the new regionalism and the South; secondly, it will review the domestic, regional, and international factors which have traditionally conditioned the foreign policies of Brazil, South Africa and India; thirdly it will investigate the formulation and implementation of ‘trilateralism’ as a initiative framed within the context of the new regionalism; and, finally, it will conclude with an analysis of the initiative’s prospects for success in the contemporary environment.

Kastner, Scott. "The Domestic Politics of Trade with Adversaries" Paper presented at the annual meeting of the ISA’s 49th ANNUAL CONVENTION, BRIDGING MULTIPLE DIVIDES, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 Online <APPLICATION/PDF>. 2009-04-17 <http://www.allacademic.com/meta/p251262_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Many recent studies find that international political conflict—operationalized in a variety of ways—harms trade. Well-known cases help to underscore these general findings. For example, Cold War tensions helped to undermine East-West trade, and trade between India and Pakistan slowed sharply in the years after partition. On the other hand, however, trade between adversaries also appears to vary substantially across cases. Indeed, trade can sometimes flourish despite intense political rivalry. In the current relationship between mainland China and Taiwan, for example, China has become Taiwan’s largest trading partner despite persistent political tension across the Taiwan Strait.How can we explain variation in the extent to which states trade with their adversaries? Building on existing literature, I develop a framework through which to understand how domestic coalitions concerning trade with an adversary are likely to form. While some actors are likely to favor or oppose trade for purely economic reasons, those without a direct economic stake in the relationship are likely to focus more on the political and security consequences of trade with the adversary. In this framework, two variables emerge as central in determining a country’s trade policy with an adversary: the relative political strength of internationalist versus protectionist economic interests, and whether those concerned primarily with politics believe trade will have positive or negative political and security externalities. I use the framework to develop several testable hypotheses, and evaluate them via short case studies of three contemporary rivalries: China/Taiwan; India/Pakistan; and North Korea/South Korea

Campos, Taiane. and Las Casas, Luciana. "Similar roles, different strategies: Brazil, India and South Africa trade policies" Paper presented at the annual meeting of the ISA’s 50th ANNUAL CONVENTION "EXPLORING THE PAST, ANTICIPATING THE FUTURE", New York Marriott Marquis, NEW YORK CITY, NY, USA, Feb 15, 2009 Online <PDF>. 2009-04-17 <http://www.allacademic.com/meta/p313872_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: The trade policies of Brazil, India and South Africa have significant historical similarities: these countries are original WTO members; they adopted import-substitution industrialization; promoted neoliberal reforms; have been playing important roles in their regional contexts; and, more recently, they have also formed alliances and coalitions (IBSA, G20) in order to increase their capacity to influence the trade regime. At the same time, they are intensifying bilateral and regional ties which are different in scope and degrees of institutionalization. The result is that, despite of having similar roles which are derived from their status as middle powers, these three countries have developed different strategies concerning their trade policy. Therefore, the aim of this paper is to analyze comparatively the trade policies of Brazil, India and South Africa in the multilateral and regional environments. Our contention is that there are significant differences in their conduct on those two levels, in such a way that it is not possible to establish a fixed pattern of trade policy amongst middle powers, at least not amongst these three.

Sondhi, Sunil. "India’s big leap forward: Capacity and Preference" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii, Mar 05, 2005 Online <.PDF>. 2009-04-17 <http://www.allacademic.com/meta/p70644_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: India has changed dramatically in recent years. This paper examines India’s winning strategies-liberalization, a focus on high technology, and its resolve to become a regional leader- as well as its challenges- the wide gap between its urban and rural populations, growing unemploymeny, and the challenge posed by extremist ideologies and organisations. It also considers the effects that India’s success has had both at home and abroad. India’s progress has unnerved some of its neighbours and trading partners. South Asian countries worry about India’s economic dominance, in the US concern has been mounting over loss of jobs in the service sector. India has tried to soften its neighbours concerns by spearheading regional free trade zone. It continues to signal its desire to integrate into the world economy by pursuing liberalization and encouraging trade. It is argued in this paper that an economically strengthened India will increasingly regard itself as a great ppower and expect more deference from other countries. There is little doubt that India’s emergence as an economic power will rank as one of the principal issues confronting world leaders in next few decades and that its role demands careful analysis.

Pigman, Geoffrey. "Economic and Security Convergence: Governments and Firms in U.S.-India Diplomacy from Super 301 to the 2002 Kashmir Crisis" Paper presented at the annual meeting of the International Studies Association, Le Centre Sheraton Hotel, Montreal, Quebec, Canada, Mar 17, 2004 Online <.PDF>. 2009-04-17 <http://www.allacademic.com/meta/p72364_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: U.S.-India economic relations evolved substantially between the 1989 Super 301 trade dispute and the 2002 India-Pakistan crisis over Kashmir. Traditional models of economic diplomacy focusing on the leading role of governments and their relevant ministries, in which business had a subordinate lobbying role in the decisionmaking process, could be used to describe the low-level U.S.-India economic and security relationship that prevailed in the 1980s. However, the conclusion of the GATT Uruguay Round, the technology boom of the 1990s and other structural factors have intensified the economic relationship between the two countries significantly. The attacks on New York, Washington and New Delhi in 2001 culminated a process of convergence of the two countries’ security interests. A complex network of diplomatic interactions between governments, U.S. and Indian global firms, and the U.S.-Indian business and cultural diaspora contributed to convincing the Indian Government to defuse tension with Pakistan in summer 2002. Understanding this process requires an updated model of economic diplomacy that incorporates the role of non-state actors, multiple channels of communication and integration of domestic and international politics. Neo-Gramscian notions of hegemonic power structures integrating political leadership, transnational capital and civil society contribute to explaining the exercise of power in these newer, complex business-government diplomatic networks

Brookes, Marissa. "Toward Transnationalism: Comparative Insights on Organized Labor’s Strategic Responses to Offshore Outsourcing in the Telecommunications Industry" Paper presented at the annual meeting of the Midwest Political Science Association 67th Annual National Conference, The Palmer House Hilton, Chicago, IL, <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p362173_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Why do some unions confront global capital through transnational action, while others act only nationally? I address this question through the lens of union responses to offshoring in the telecommunications industry in Australia, the US, and the UK. Union strategies vary both across and within these countries, despite their institutional similarities as liberal market economies. While some unions pursue solidaristic partnerships with their labor counterparts abroad, others restrict action to pressuring governments and mobilizing domestic coalitions. The joint project of the Communications Workers of America (U.S.) and the New Trade Union Initiative (India) contrasts sharply with the Communication Workers Union’s (UK) nationalist anti-offshoring campaign. Most other cases fall in between. For example, the Australian Services Union focuses on government action and consumer mobilization yet is actively involved in several Global Union Federations and international campaigns. I argue that this variation is due to three factors: the union’s ability to adjust to historical changes in the telecom industry; employers’ actions affecting unions’ mobilization of domestic coalitions; and the viability of potential labor partners abroad.

Mishra, Pramod. "China-India Bonhomie: A Harbinger of Multilateralism" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii, Mar 05, 2005 Online <.PDF>. 2009-04-17 <http://www.allacademic.com/meta/p69909_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: CHINA-INDIA BONHOMIE: AN HARBINGER OF MULTILATERALISM By Dr Pramod Mishra Associate Professor in Politics, University of Delhi, New Delhi, India China and India have emerged as important global players at the dawn of the twentieth century. The former by discarding its isolationism and closed-door policy in the early 1980s took a number of corrective measures under Deng Xiaping’s stewardship and integrated its economy to the developed western world. As a result of that by the mid-1990s, China achieved a high growth rate of 9 to 10 per cent per annum. Its political process has not been an obstacle to the expansion of its diplomatic and commercial links with the rest of the world. In fact, its civil service has been surprisingly very resilient. India on the other hand has been a late starter to globalization and the restructuring of its hitherto mixed economy. Although the background to India’s modernization was provided by the Raja Gandhi government (1985-89), it was left to the Narasimha Rao government to integrate India to the global economy. The bold initiative taken by the-then Finance Minister Man Mohan Singh brought healthy dividends and India’s rate of growth remained steady at 7 to 8 per cent per annum during the 1990s. The NDA government headed by Atal Bihari Vajpayee has continued that initiative and as a result of that India at present maintains one of the highest growth rates in the world. The proposed paper will closely examine the nuances of mutual economic and political interactions between China and India. Although their present trade turnover is place at $5 billion only it has a potentiality to triple by the end of 2010. The leadership in both the countries have ignored the past decades of mistrust after a limited border war in 1962.It is quite possible that the two nations may amicably sort put their border demarcation problem and go ahead to make a concerted effort to establish a more democratic and humane world order. They can also systematically neutralize the unhealthy unilateralism which has heightened the global insecurity in various regions leading to immense sufferings to large part of humanity.

Moore, Candice. "Multilateralism and Trilateralism in the IBSA Partnership: Tensions and Congruities" Paper presented at the annual meeting of the ISA’s 49th ANNUAL CONVENTION, BRIDGING MULTIPLE DIVIDES, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p251820_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper seeks to examine the tensions between trilateralism and multilateralism in the IBSA partnership. While one of the stated goals of the partnership is multilateralism and the reform of the United Nations (IBSA Communique, 2005), the trilateral partnership that IBSA embodies appears antithetical to the representation of broader interests in each member’s region. This issue came to a head in the months preceding the debates on UN reform in September 2005, when India, Brazil and South Africa each voiced their interest in permanent representation on the UN Security Council, but failed to win the support of their regional neighbours. More recently, it is evident in the prominence of India and Brazil in exclusive trade talks with the EU and US to save the Doha Development Round. The paper draws on the middle power literature, which sees middle powers as committed to multilateralism, but problematises this commitment by considering the growing economic and strategic significance of these states. Trilateralism is not pursued to the exclusion of North-South links, as evidenced in Brazil’s and India’s increasing closeness to the US. It is thus not an alternative to robust North-South relations, as older forms of South-South solidarity (NAM and G-77) were portrayed. The paper concludes thus that the IBSA partnership is not a successor of older forms of South-South solidarity premised on multilateralism, but rather a vehicle for the development and increased levels of participation in international affairs of its three members.

Turner, Robin. "Liberalization and Domestic Politics: The Case of Livestock Policy Reform in India" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 Online <.PDF>. 2009-04-17 <http://www.allacademic.com/meta/p59903_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: This paper explores the dynamics of livestock policy reforms in two Indian states, Andhra Pradesh and Orissa. Livestock policy reforms have been shaped by the intersection of domestic politics and power relations, international actors—especially foreign governments and development organizations, and international trade regimes. The international policy environment and global trade regime has set the context for India’s market-oriented reforms, but it is largely domestic political leaders, institutions, bureaucratic structures, and organized interests that have shaped the form and extent of reform in this sector. Marked differences in the reform trajectory of different livestock sectors in the neighboring states of Andhra Pradesh and Orissa show how domestic politics can shape the implementation of global reforms. This paper focuses on the politics of reform in the large ruminant (cattle, buffalo) and animal health and breeding subsectors.

Singh, J.P.. "Culture or Commerce? A Comparative Assessment of International Negotiations and Developing Countries at UNESCO and WTO" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 Online <APPLICATION/PDF>. 2009-04-17 <http://www.allacademic.com/meta/p178918_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The proposed paper will depart from ominous warnings regarding globalization in arguing that international trade and cultural diversity can co-exist. The study will show that while negotiating trade issues, increasing international and domestic coalition building in cultural issues leads to preservation of policy autonomy for addressing cultural identity and diversity concerns. Two important international negotiations on cultural issues ? one at the World Trade Organization and the other in UNESCO — will be examined for empirical substantiation. A comparative assessment of the way these negotiations balanced culture and trade issues will be undertaken for a set of developed countries (particularly US and EU) followed by a set of developing countries representing those remaining fearful or confident of the impact of international trade on cultural diversity. Developing countries analyzed will be India, China, Mexico, Brazil, Argentina, Senegal, and South Africa. We would expect developed countries most likely to preserve cultural policy autonomy and the developing countries least likely to do so. The empirical evidence collected so far seems to show that depending on their coalition-building efforts, both sets of countries can preserve cultural policy autonomy.

Arnold, Caroline. "Late Industrialization in International Perspective: Historical Reflections on Turkish and Indian Industrialization" Paper presented at the annual meeting of the Midwest Political Science Association 67th Annual National Conference, The Palmer House Hilton, Chicago, IL, <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p363074_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This claim is surprising given that India and Turkey are portrayed in both robust area studies and the wider development literatures as the prototypes of state-led industrialization. I argue that links between local industries and international markets have diverged to create three phases of industrialization in India and Turkey as technologies and the character of international trade and production have shifted. They have done so in ways that influenced the very patterns of capital accumulation and technological acquisition that are central to traditional accounts of late industrialization. Contra the entire lineage of development theorizing, from Gerschenkron to the developmental statists, that views the state as the defining factor in the character of national industrialization patterns, Turkish and Indian cities that industrialized in the same international and historical context exhibit greater similarities with each other than they do with other Turkish or Indian cases that industrialized at other times. This paper demonstrates that international factors, rather than the role of the national state, determined the sources of capital, role of technology, and the role of labor in Turkish and Indian industrialization.

Guisinger, Alexandra. "Who Liberalizes? Explaining Cross-Country Variations in Trade Protection Though International Networks" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii, Mar 05, 2005 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p71395_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Despite the theoretical benefits of zero-tariff trade and a recent trend towards trade protection liberalization, large cross-national variations in trade policy endure. What determines countries’ trade policy choices? Traditional comparative politics explanations have focused primarily on domestic determinants: the economic constraints faced by leaders as determined both by domestic resource endowments and previous policy choices and/or the effects of domestic political institutions (for example: Magee et al, 1989; Mansfield and Busch, 1993; Nielson, 2003). However, while support for such arguments is evident in studies of OECD behavior, they lack explanatory power for a broader class of countries (Guisinger, m.s. 2003). More recently, alternative explanations based on membership in the GATT/WTO have received at best inconclusive support (for example: Rose, forthcoming). Breaking from the traditional comparative research agenda on trade and its focus on decision-theoretic models, I posit a set of diffusion hypotheses in which a country’s decision to liberalize is conditioned on its network of trading partners and peers. Levels of protection at the country-wide level converge upon those of trading partners and of peers. Not only do these networks permit the identification of likely liberalizers and non-liberalizers, but also they allow more precise determination within these groups as to the source of a country’s behavior. Expanding upon previous quantitative analysis of the trade tariffs of 60 developing countries from 1988 to 1998 (Guisinger, m.s. 2003), four qualitative case studies drawn from this analysis are presented: Brazil, Argentina, India, and Nepal.

Herring, Ronald. "Politics of Transgenic Property in India: Biopiracy, Monopoly Power or Cottage Industry?" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 Online <PDF>. 2009-04-17 <http://www.allacademic.com/meta/p180347_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The genomics revolution in biology has spawned a new politics, with strikingly similar themes from California to Gujarat. The spread of biotechnology internationally continues on an accelerating curve upwards. Developmental states in China, India and Brazil promote the technology to make their agriculture competitive with that of richer nations. Equally, resistance in an international civil society escalates with the increasing number of crops, acres and farmers involved with genetically engineered organisms. Property is one strand of this contentious politics. Trade-Related Intellectual Property Rights (TRIPS) have become a flash point of mobilization of civil society against corporate globalization. Concentration of property rights in powerful multinational firms with no incentive to find solutions to problems of poor farmers in poor countries and potential for monopoly profits at the expense of poor farmers both figure prominently in the critique of genetic engineering in developmental terms. Worse, appropriation of intellectual property in biota of the global South is held to threaten poor societies for the profit of firms in the global North. This paper explores the ground realities related to these political claims. It argues that the oppositional critique reifies intellectual property ? in the form of ?patents? ? in a way that has proved inconsistent with behavior of actors on the ground in India and other countries. Property is here conceptualized as a relationship between actors; the outcome cannot be derived logically but must be investigated empirically. In the absence of the much critiqued ?terminator technology,? reverse ?biopiracy? seems not only fairly easy to accomplish, but popular in farming communities. This move by farmers puts them in conflict, objectively, with some, but not all, NGOs that claim to represent their interests. The paper will discuss outcomes from a national case study in terms of differentiations of property that make sense theoretically, from hard to soft and from common to private. It will conclude with suggestions about what the divergence of interests between farmers and NGOs means for representation and political power in rural areas.

Sequeira, Vikrum. "IBSA, International Relations Theories, and Changes in the Global Architecture" Paper presented at the annual meeting of the Political Research Online, Palmer House Hotel, Hilton, Chicago, IL, Apr 03, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p267593_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: In June 2003, India, Brazil, and South Africa inaugurated the IBSA Alliance, which aimed to become what South African President Thabo Mbeki hailed as a "G-8 of the South." The three nations would try to expand the permanent membership of the UN Security Council, modify the TRIPS laws, and impel the US and EU to eliminate agricultural subsidies. The countries also agreed to cooperate in agricultural research, IT, trade, and defense (among other issues). This paper asks four broad questions: 1. Can the paradigms of international relations (e.g., realism, pluralism, Marxism, etc.) explain the IBSA alliance? 2. Will IBSA be able to accomplish its stated goals? 3. Has the IBSA alliance modified the foreign policies of the participant states? 4. Is the creation of IBSA emblematic of a new global architecture? I argue that none of the IR paradigms alone can explain IBSA; IBSA may achieve success in its clearly stated goals but will be unsuccessful in its other goals; the alliance has slightly modified the countries’ foreign policies; the creation of IBSA does indeed represent a change in the world political-economic system.

Oliveira, Amancio. and Onuki, Janina. "South-South Cooperation: Coalitions and Multilateral Negotiations. The Case of IBSA (Brazil, India and South Africa)" Paper presented at the annual meeting of the Political Research Online, Town & Country Resort and Convention Center, San Diego, California, USA, Mar 22, 2006 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p99910_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The international coalition formation process has played a central role in the dynamics of multilateral and regional trade negotiations, particularly as concerns the outlook for the re-balance of central-peripheral forces of the international system. The reopening of a new round of multilateral negotiations, focusing precisely on new thematic challenges regarding international trade and routes to development, reintroduces the centrality of the role of South-South alliances.In practice, cooperative efforts of this nature are already making themselves felt with the formation of a series of coalitions, whereas emphasis must be placed on G-20 and G-3 (IBSA). The essential aspect to be retained is that, taking into consideration the dimension of the convergence of international business interests strictly speaking, the partnership between India and Brazil, at the starting point of efforts to build international coalitions, is clearly counterintuitive.With a basis on the Compared Foreign Policy Analysis, the objective of this paper is to contribute towards a more comprehensive understanding of the bases (domestic and international) of the formation of international coalitions, of the South-South type in the new context of the multilateral agenda. A comparative matrix will be built as an analytical instrument. Based on databased with variables, the compared analysis of these variables will permit the itemization of vectors of convergence and divergence among the countries capable of indicating the stability and effectiveness of the coalition.

de Mello Souza, André. "Global Governance, Developing Countries and Advocacy Networks: The Struggle over Pharmaceutical Patent Rights" Paper presented at the annual meeting of the Political Research Online, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p251818_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) has challenged developing countries in issue-areas as diverse and important as public health and agriculture. Most notably, these countries have often contended that patents block access to essential medicines, and opposed strict rules of patentability for genetic resources which encourage biopiracy and fail to protect traditional knowledge. Whereas developing countries have become increasingly assertive in multilateral forums, their capacity to successfully negotiate with the countries that champion intellectual property protection and especially the US has varied considerably across issue-areas. Developing countries have succeeded in amending TRIPS to allow greater international trade of patented medicines, but have failed to resist the patenting of genetic resources and to create effective rules for benefit sharing. The paper argues that the negotiating capacity of developing countries with regard to pharmaceutical patent rights has been largely determined by the strength of their alliances with transnational advocacy networks, as well as by these networks’ strategic use of science and human rights discourse. Field work has been conducted in South Africa, Brazil and India as well as in Geneva, consisting mostly of interviews with government officials, company executives and representatives of the non-governmental sector, as well as analysis of policy documents.

Kastner, Scott. "How International Conflict Affects Commerce: Domestic Interests and Institutions as Intervening Variables" Paper presented at the annual meeting of the Political Research Online, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p61628_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Limited commercial integration between India and Pakistan, or within much of the Middle East, suggests that conflicting political interests between countries can have a detrimental effect on their economic relations. Indeed, a number of empirical studies have shown that tension or conflict between countries tends to be associated with lower levels of commerce. Yet rapidly growing economic ties between Mainland China and Taiwan shows that commerce can also flourish even in the presence of severe political tension and a potential for military conflict. In this paper, I develop an argument that accounts for variation in the relationship between conflict and commerce. Defining conflict as the level of underlying preference dissimilarity between countries, I argue that conflict’s effects on trade are contingent on the types of governing coalitions and political institutions within the states enmeshed in a conflictual relationship. Specifically, if free-trade interests are relatively strong politically, the independent effects of conflict on trade are less severe; conflict’s effects on trade are also less severe when conflict involves at least one democracy. I test my argument quantitatively on a large sample over the years 1960-1992, and find robust support for my hypotheses.

Biermann, Frank. and Sohn, Hans-Dieter. "Multipolar Global Governance: India and East Asia as New Partners for Europe" Paper presented at the annual meeting of the Political Research Online, Le Centre Sheraton Hotel, Montreal, Quebec, Canada, Mar 17, 2004 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p74421_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Whereas European foreign policy used to be defined through the alliance with the United States, it is now clear that this one-sided orientation is no longer sufficient. This is especially the case for global environmental governance, where Europe stands in most negotiations, almost by default, against the United States. The core examples are the almost universally recognised biodiversity convention of 1992, its Cartagena protocol on safety in the trade of genetically modified organisms, the Basel agreement on the transboundary shipment of hazardous waste and their disposal, and, most crucially, the Kyoto protocol to the UN framework convention on climate change. All these agreements have been rejected by the United States of America. In this situation, we argue that if Europe wants to make progress in environmental and other issue areas, it needs new and stable alliances, in addition to the old transatlantic linkage. We will direct attention towards possible partners in Asia and primarily address the great powers of Asia: Japan, China and, in particular, the world’s largest democracy, India. We argue for a twofold strategy. Internally, Europe must unite more strongly. The old Kissinger question still has to be answered: which phone number does the US president—or the prime minister of India—have to call if he or she wants to get Europe’s opinion? The European Union must improve the coherence of its foreign policy, primarily through becoming further communitised. The office of a EU president could take joint responsibility for foreign and security policy in the medium term. Externally, Europe needs to reform its foreign policy and rethink well-trodden paths. This applies in particular to redefining the traditional North-South antagonism in international negotiations, which hardly corresponds any longer to the reality of the international system in many policy areas. New international partnerships between the European Union and the large Southern democracies could redress the traditional confrontation between the group of Western industrialised countries and the ‘Group of 77′, possibly pointing out solutions if global governance projects should threaten to fail because of unilateral rejection by the USA. The political drifting apart of the ‘First World’, the dissolution of the ‘Second World’ and the political, economic and social differentiation of the ‘Third World’ thus offer scope for the recharting of world politics. The development of a multilateral global governance structure requires a strong global alliance of democratic players: many recent environmental treaties—but also the international criminal court, the anti-landmine treaty and other examples—show that Europe and the Bush administration often no longer act together but rather against each other. The European Union must therefore look for other partners—to complement rather than replace the United States of America. We argue that increased dialogue and more intensive political co-operation on the part of Europe with the world’s biggest democracy, India, could be one element of such a reorientation.

Wolfe, Robert. "Power and Institutional Structure in Global Governance: The Changing Dynamics of Agricultural Trade Negotiations" Paper presented at the annual meeting of the Political Research Online, Town & Country Resort and Convention Center, San Diego, California, USA, Mar 22, 2006 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p98022_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper will present work from a larger project on institutional dynamics and power in the WTO based on an analysis of the evolution of the negotiating process on agriculture since the Tokyo Round. I am selecting for variation on aspects of process, expecting to see variation in outcome. When we are interested in processes more than structures, qualitative case studies can be more useful than large n statistical studies. I propose to use the ?method of difference? to examine a set of apparently similar cases in which key aspects of the process differ to see if the outcomes differ. The outcome variable will assessments in the press, the academic and policy literature, and participant interviews, of the success or failure of the agriculture component of successive GATT and WTO ministerial meetings. The explanatory variables are A) institutional structure (nature of the committee structure, repertoire of formal and informal techniques used by the chair to build consensus) and B) the nature and role of negotiating coalitions that reflect different constellations of material interests and diplomatic skill. The role of coalitions in the trading system appears to be changing with the emergence of the G-20 group of leading developing countries interested in agriculture. Regional groups of developing countries, and the LDC group, now coordinate among Geneva ambassadors, they have ministerial meetings, and since Cancun they are working together at ministerial level as the G-90 grouping of the African, ACP, and Least-developed countries. And there are separate groups for agriculture including the Cairns Group (exporters), and the G-10 and the G-33 of developed and developing importers. At the heart of the negotiations on agriculture is a ?non-group? (because not like-minded) of ?Five Interested Parties?, EU, USA, Brazil, India and Australia. Can we explain outcomes on the basis of process or the power of the leading participants?

Saksena, Jyotika. "International Organizations and Erosion of State Sovereignty" Paper presented at the annual meeting of the ISA’s 49th ANNUAL CONVENTION, BRIDGING MULTIPLE DIVIDES, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p251222_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Since the end of the Second World War, the international system has seen the multiplication of international organizations that have made inter-state cooperation a sustainable reality. In doing so states have agreed to give up part of their decision-making authority to international organizations leading to a growing concern that in the process states are losing their sovereignty, namely their right to make decisions on behalf of their people. This paper uses John Ruggie’s definition of sovereignty, defined as “the institutionalization of public authority within mutually exclusive jurisdictional domains”. This study will attempt an examination of the impact of international organizations in eroding state sovereignty. After an initial discussion of what constitutes a loss of sovereignty, the study will focus on the impact of a specific international organization – the WTO – in eroding state sovereignty. Finally, in order to achieve a comparative dimension, the study will investigate the impact on the state at two levels – great/super power level and middle power level by examining the response of the United States and India to the dictates of the WTO.

Sinha, Aseema. "Global Trade Rules and India: Modifying Putnam?s Two-Level Framework" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 <Not Available>. 2009-04-17 <http://www.allacademic.com/meta/p180081_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Putnam outlined a powerful metaphor for understanding domestic-international interactions in his two-level framework. In his analysis domestic politics drives international negotiations. Negotiators must make their international actions consistent with domestic support and policy: leaders respond to international obligation to the extent that these commitments are domestically viable. Aseema Sinha offers a modification to this framework in two important respects. First, she shows how the specific negotiation structure of the international context shapes the domestic win set. Global rules need to be disaggregated and their variable effects analyzed more carefully than has been done from within the terms of the two-level model. Further, India?s experience with GATT and WTO offers the opportunity to exploit within case variation across time to analyze how global rules of the game affect and change domestic imperatives and interests.

Souza, Manoela. "India’s Accession to TRIPS: The IP Legislation Reform (2005) and its Reflections on India’s Foreign Policy on HIV/AIDS Matters" Paper presented at the annual meeting of the ISA’s 49th ANNUAL CONVENTION, BRIDGING MULTIPLE DIVIDES, Hilton San Francisco, SAN FRANCISCO, CA, USA, Mar 26, 2008 Online <APPLICATION/PDF>. 2009-04-17 <http://www.allacademic.com/meta/p252134_index.html>

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper will discuss the relevance of India’s accession to the TRIPS-mandated regime for its foreign policy on HIV/AIDS matters. This study will investigate whether the formal accession to WTO’s norms regarding patents, through 2005′s third amendment, eventually brought about a new background for its foreign policy on HIV/AIDS. With concern for Doha’s flexibilities, this work intends to show how India’s pharma industry and local/global activism might have influenced, respectively, a watershed on the country’s advocacy on international health (especially with regard to anti-retroviral drugs).

Trade/WTO issues in Sharad Pawar-led Nationalist Congress Party election manifesto

Continuing with my earlier posts about elections manifestos and trade policy issues in the 2009 Indian national elections, I looked at the NCP manifesto.

The 2009 NCP manifesto found here does not directly talk about trade policy or WTO issues. But there are some trade policy relevant promises.

The NCP will provide more subsidies for deep-sea fishing and exports. Wonder if they know about what has been going on in the Doha round fisheries subsidies negotiations?

Development of fisheries sector also will be intensified. Assistance will be given to the fishing community for deep sea fishing and processing and export.

The NCP is worried about job losses due to the current economic crisis and is especially worried about highly-skilled labor returning from home from foreign countries.

The global economic crisis that has caused collapse of the economy and retrenchment lakhs of employees working in financial and technical institutions and closing down hundreds of business firms in foreign countries. Though not in that magnitude it is having its effects on Indian economy as well.

Lakhs of Indians including skilled labours, who had been employed in various foreign countries, especially in the developed countries, who have lost their jobs are returning to India. Not only has this affected the contributions of the NRIs to our economy, but has created the problems of rehabilitating them.

The plight of Indian skilled workers returning home because of global meltdown deserve urgent attention. The skilled Indian workers in the past have remitted huge amounts of money, which has helped the country in swelling its forex reserves. Therefore, it is the duty of the government to help these personnel, small/medium scale enterprises by giving them liberal loans at a very concessional rate.

The mixed economy we pursue giving equal importance to public sector, private sector and joint sector has helped us to withstand the onslaught of the world economic recession. But it has slowed down our economic growth, increased our unemployment problems and other related matters. It has reduced export business and multiplied our problems in the sector.

Two packages have already been declared by the government and the banks and government has adopted some measures to ease the situation. But still the situation has not been brought under control.

The onslaught of the global economic recession has started affecting our economy also. Large-scale retrenchments, lay offs, causalisation of employees are creating serious employment problems.

Our economic reforms should necessarily be implemented with a human face. It shall not affect the employment sector negatively.

The NCP wants a boost for domestic consumption:

Under the circumstances, our industries have to concentrate on goods for domestic consumption. Domestic consumption should be encouraged for which the purchasing capacity of the people should be improved. Cheaper goods to meet market competition should be targeted. The growth in the agriculture sector will certainly contribute to the purchasing power of the people to some extent. More investment on infrastructure development, widening the scope of employment guarantee scheme and on other rural development activities would improve the purchasing capacity of the people.

The NCP spells out its concept of development:

By development, we mean overall development of the life of the common man including the weaker sections of the society in as much as it provides a better life for them, better housing facilities, better food, better clothing, facilities for giving better education for their children, and better health facilities. All these depend on more earnings or remuneration. So the economic development should provide for more employment opportunities and more employment generation schemes and projects.

Well, the manifesto seems to have been very hurriedly put together. I guess they don’t rely much upon their manifesto to get votes.

Indian animal rights NGO calls for inclusion of animal welfare standards in WTO agenda

The Statesman carries a report that an Indian NGO has welcomed statements from EU officials about including animal welfare as a non-trade concern in WTO agreements. The report:

Animal activists in India have welcomed a move by the European Union (EU) to push for inclusion of animal welfare in the World Trade Organisation (WTO) multilateral trade negotiations. They have said that they will pursue the goal of welfare of animals including stray animals that are subjected to untold sufferings.
Hailing the EU move as the right one, Citizens for Animal Rights (CFAR), New Delhi, said that the inclusion of animal welfare standards in WTO agenda is urgently needed to effectively enforce animal standards worldwide, and to improve the appalling condition of slaughter houses in many countries, including India. India should take the lead in promoting animal welfare as the land of Ahimsa, they said.
Animal welfare concerns are being increasingly recognised in food production around the world, but they must be formalised within the WTO trade agreements, according to several senior representatives of the EU who spoke at a recent Brussels conference on "Global Trade and Farm Animal Welfare". Czech agriculture minister Mr Petr Gandalovic, the new chair of the EU Farm Council, explained that the next six months will see a strong focus on European animal welfare standards, including new slaughter rules.
EU health commissioner Miss Androulla Vassiliou also highlighted the growing importance of animal welfare issues as live animals and animal produce are traded across the world, arguing for their inclusion as a "non-trade concern" in WTO agreements. She said: “Animal welfare is gaining rapid momentum, not only in the EU but worldwide”. The importance of animal welfare in ensuring the quality and safety of meat was also highlighted, as well as the goal of minimising animal suffering.

Its interesting to see another example of an Indian NGO engaging with WTO issues.  However, I am not sure (from the above report) as to whether the Indian NGO really understands this issue. They seem to be talking about welfare of animals in all circumstances including stray animals  and their concerns are more appropriately addressed by domestic regulation on domestic treatment of animals. The EU officials on the other hand want to make this a WTO issue and bring in a WTO rule that allows countries to prevent imports on the ground of animal welfare. The issue is whether such a new emphasis on animal welfare is needed in the WTO treaties. Isn’t GATT article XX sufficient to allow for measures on the ground of animal welfare, in as much as it would be necessary to protect public morals or to protect animal life or health? The SPS agreement also allows for measures for the protection of animal life or health. Such measures can include regulation of processes and production methods. The SPS agreement would also arguably allow for otherwise trade-restrictive domestic regulation necessary for humane animal welfare standards.

And with the Doha round floundering and increasing trade protectionism all-round, measures based on animal welfare might be the subject of new battles over non-tariff barriers in the livestock farm sector. The EU’s proposed ban on seal products on animal welfare grounds is already causing friction with Norway and Canada. See a report.

New paper looks at Indian agricultural trade policymaking from institutional perspective

See Gupta, Surupa. "The Institutional Basis of India?s Defensive Position on Agricultural Trade Policy" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 <Not Available>. 2009-02-04 http://www.allacademic.com/meta/p181265_index.html

Here is the abstract:

This paper analyzes trade policymaking in India in the context of the ongoing negotiations on trade in agriculture at the WTO. During the past decade, the overall direction of India’s trade policy has become more liberal. However, India’s position on liberalization of trade in agriculture at multilateral trade negotiations is dominated by its defensive/protectionist interests expressed in terms of a focus on livelihood security rather than its aggressive/liberal interests in gaining market access. This presents a puzzle for existing trade theory which would expect India’s farm trade policy to be more liberal, given that about 80% of India’s farm prices are globally competitive. This paper adopts an institutional perspective, and argues that the policy is ultimately a product of the existing domestic agricultural policies and the new consultative trade policy-making apparatus. Reform of existing policies has proved difficult and the Ministry of Agriculture resists liberalization because it sees itself primarily as a protector of farmers’ interests. At the same time, the government has changed the institutions for making trade policy since 1998, giving the protectionist Ministry of Agriculture greater voice in decisions at the expense of the Ministry of Commerce and Industry. The former has often vetoed more liberal positions advocated by the Commerce Ministry. The Parliament, unlike in the west, plays a minor role in setting the tone of the policy since its ratification is not required. Moreover, although in India’s federal system state governments could have used their power to shape policy, they have not organized politically to press for liberalization, instead supporting the protectionist views espoused by the agriculture ministry.This paper also shows that conventional institution-based explanations of trade policy, mainly based on the US and West European experience, need to be modified when being applied to developing countries like India. For example, institutional theories suggest an association between democracies and liberal trade policies, but this case shows that democracies can sometimes be more protectionist. Discussions of the role of bureaucracies focus on the relation between bureaucratic autonomy and trade liberalization. However, some relevant bureaucracies are not autonomous, and some autonomous bureaucracies may not support liberalization. This research suggests that bureaucracies should not be treated as unitary actors.

On the aggressive media coverage of WTO issues in India

I have earlier blogged about the media coverage of WTO issues in India, see media coverage and my post about a research paper by Madhu Arora on this topic.

Since I started this blog and began to pay attention to Indian media reports on WTO issues, I am struck by the strident and aggressive tone that a lot of the reports adopt. The message being put out seems to be one that shows India in attack mode as far as WTO engagement is concerned.

An article in today’s Business Standard exhibits the same trend. It is a report on Indian participation in the discussions on the trade policy review of the EU. The caption of the report states:  India “flays” EU for trade barriers on agri exports, service providers. The report itself uses phrases like India “chides” the EU and “Indian trade official took Brussels to task” and that India along with other developing countries “exposed” the dark side of the EU’s trade regime. I have quoted the full article below, but first some thoughts:

A lot of the news reports are based upon briefings from Indian trade policy officials. Understandably, therefore these reports seem to announce “success” in how the issue was handled by officials. The media coverage is also biased towards reporting success and reports of failures are few and far between. Again this can be explained as an outcome of the sources journalists turn to. The language used is very often militant and strident and uses attack imagery. This complements a sense prevailing within India about India’s new found competence in international engagement and its growing “power status”. There is definitely a feel-good factor being sold to Indian stakeholders here, conveying a sense that the government has things well in hand and is looking out for Indian interests. Almost every major Indian English daily and especially the economic media has a journalist specialising in WTO and trade issues. These journalists develop a relationship with government officials and the interaction is mutually beneficial. Government officials can feed stories and journalists have a steady source of news-worthy information.

India today chided the European Union for continuing to maintain a range of trade barriers on India’s agriculture exports as well as service providers under Mode 4 of short-term movement of service suppliers, Business Standard was told.

During the EU’s ninth trade policy review meeting at the World Trade Organization, an Indian trade official took Brussels to task for imposing what are called ‘standards’ concerning maximum residual limits (MRL) of aflatoxin in spices, processed food, ground nuts and cereals among other items.

These EU standards, the Indian official said, slapped burdensome requirements on Indian exporters who found it technically and economically unfeasible to implement them, given the high costs involved.

The EU’s Food Safety Authority had rejected India’s agricultural exports under the guise of testing and certification requirements and labeling norms. These practices “led to huge commercial losses for Indian exporters,” India complained.

China, Brazil and several other developing countries joined India in “exposing” the EU’s new standards

The trade policy review offers a platform to members to point out the difficulties their exporters are encountering in the country under review.

While every developing country’s trade policy is subjected to a review once in four years, the developed countries will have to appear before members once in two years.

Members can raise oral and hundreds of written questions about the specific problems faced by their exporters.

Ahead of the meeting, the WTO Secretariat issued a report cataloguing Brussels’ macro-economic and trade policies as well as the continued tariff and non-tariff barriers that are in place.

Though the EU has adopted several open and liberal policies in both trade in goods and trade in services, it also maintains insidious barriers on agriculture imports, chemicals, and trade in services, analysts said.

“The EU will continue to show leadership on global trade and stand firm against protectionism,” said EU trade commissioner Catherine Ashton, arguing that Brussels was committed to “multilateralism, to transparency, and to open markets based on rules that benefit developed and developing countries.”

Being the world’s largest market, the EU was not only quizzed on a range of barriers that cover trade in goods and services, but was also showed the “dark side” of its overall trade regime, said an Asian trade diplomat.

The EU, for example, has in place restrictions on Indian banks starting their operations in its member states. Brussels also imposed what are called Mode 4 restrictions, such as 3-6 years of professional experience for contractual suppliers and independent professionals, India said.

India drew attention to barriers in the form of non-harmonised service regulations that inhibit Indian services providers to move from one member country to the other. In a large number of EU member nations, there are requirements of number of board members to be residents, which raises costs for service providers.

The EU also failed to provide a level-playing field for foreign telecom companies, India noted. As “the EU mandate deems the Research and Development sector as mandatory for domestic job creation because of which it is hesitant in allowing free interdisciplinary movement”, only 34 per cent of researchers are non-EU.

Tough posturing on trade agreements in BJP manifesto

A follow-up to my earlier post on election manifestos and the WTO:

The 2009 election manifesto of the BJP released yesterday includes a paragraph on international trade agreements. The message is of a tough negotiating stance that will challenge protectionism, safeguard national interest, and renegotiate past commitments if necessary. Food security, health, and interests of workers in technology-based industries are flagged as important issues. Reciprocity and market access is emphasized. All this is of course only election rhetoric, as no positions on substantive issues (except retail trade, see below) are laid out.

International Trade Agreements

The BJP shall fight against the protectionist trend which is emerging in some developed countries. We will safeguard the country’s interests in all bilateral and multilateral trade agreements by avoiding to accept any new unilateral or less than reciprocal commitments. Our Government will renegotiate all such past commitments that are inconsistent with national interests, especially to ensure food security and affordable health care. We will not hesitate to roll back any concessions and facilities not reciprocated by the counterparts. The BJP will safeguard the interests of our vast technical manpower and ensure maximum market access in future agreements depending upon the offers made by the trade partners.

The manifesto has a separate section on retail trade. No foreign investment in retail trade if the BJP comes to power in New Delhi. 

The BJP understands the critical importance of retail trade in the context of employment and services provided by them, and thus favours a dominant role for the unincorporated sector in retail trade. Towards this end, it will not allow foreign investment in the retail sector. After agriculture, the retail sector is the largest employer of nearly four crore people.

We will:

1. Adopt all necessary measures to safeguard the interests of small and tiny retail vendors.

2. Ensure availability of working capital needs for such vendors through credit at not more than four per cent interest.

3. Study the feasibility of a slab-based ‘Compound Tax’ for traders to free them from needless harassment and end corruption.

4. Set up an empowered committee to recommend welfare measures, including a pension scheme, for small traders.

Other items that are interesting from a WTO/ international trade perspective are the promises on labour:

The BJP will holistically address the long-pending issue of labour reforms, bearing in mind the long-term interests of the working class. It will do so through close consultation with representative bodies of labour and employers. We are committed to ensure the following:

1. Making secret ballot compulsory for trade union elections, by suitably amending the Industrial Disputes Act.

2. Launching a training programme for trade unions to play an effective and positive role.

3. Setting up a ‘Workers Bank’ to deal with the banking requirements of labour in the organised and unorganised sectors.

4. Ensuring adequate compensation for any labour that may be retrenched, with the first option being redeployment.

5. Setting up a National Child Labour Commission.

6. For labour in the unorganised sector, revise minimum wages; expand safety net.

And a special mention for the diamond industry that has been hit by the global economic crisis:

Hindustan Diamond Corporation will be provided full support to help the diamond industry tide over the crisis caused by the global economic slump. It will provide raw diamonds to the cutting and polishing units and bank them for future trade.

The BJP manifesto can be downloaded here.

Indian elections: political party manifestos and the WTO

With Indian national elections due from 16 April, most major political parties have released their election manifestos. I looked at some of these to see if they mentioned the WTO.

The CPI (M) 2009 manifesto does mention the WTO and says this:

WTO and Trade Issues
The CPI (M) stands for:
Protecting Indian interests and that of the developing countries in the ongoing Doha Round of WTO; no further tariff cuts in agriculture and industrial goods.
Restore measures to protect small and marginal peasants, including quantitative restrictions
Keep sectors like health, education, water resources, banking and financial services out of GATS; Press for review of the TRIPS agreement.
Review existing Free Trade Agreements (FTAs); Make public India’s negotiating positions in the FTA negotiations with EU and EFTA.

The Indian National Congress does not mention the WTO in its 2009 election manifesto. The manifesto does talk about its approach to governance and professes a “middle way”:

The Middle Path – the Congress’s way

Balance—or the middle path–has always been the hall-mark of the policies of the Indian National Congress.

As the world experiences a severe recession, it is this balance that is standing India in good stead.

It is a balance between the public sector and the private sector, with an important role assigned to cooperatives and self-help groups.

It is a balance between building a modern economy and imparting a  new thrust to traditional industries.

It is a balance between promoting employment in the organized sector and protecting livelihoods in the unorganized sector.

It is a balance between addressing the needs of urban India and improving the quality of life and standard of living in our villages and towns.

It is a balance between taking advantage of globalization and ensuring that these benefits flow to local communities.

It is a balance between regulation by the government and unleashing the creative spirits of our entrepreneurs and professionals.

It is only the Indian National Congress that cherishes and practices this balance in all spheres of our national life including in the conduct of economic and foreign policy.

This balance is needed now more than ever.

Surprisingly, the BJP is still to release its manifesto.

It would be interesting to look at political party manifestos for all Indian general elections since 1990 and trace how the Indian political debate on the WTO has evolved.

In its 1998 election manifesto, the Congress did mention the WTO. An extract:

The Congress will continue to fight for India’s interests in world forums like the WTO. At the same time, it will honour all international commitments in a responsible manner.

In its 1999 manifesto, the Congress talked extensively about exports, trade and the WTO. This manifesto from 1999 is an interesting document and in its detailing and scope goes way beyond what election manifestos in India usually amount to. Some extracts:

A stable, long-term policy on exports of agricultural products and commodities will be adopted. Apart from increasing incomes for farmers this will also generate new employment.

The Congress will impart a whole new look to the Khadi and Village Industries Commission (KVIC) that has significant potential for generating employment in rural and semi-urban areas. KVIC will be transformed into a modern, research-based, technology-oriented, customer- focussed organisation. New programmes for the development and modernisation of the coir industry, handlooms, powerlooms, handicrafts, food processing, sericulture, wool development, etc. – all of which have a high employment potential – will be launched.

A greater thrust on labour-intensive exports of textiles, handicrafts, gems and jewellery, leather, software, light engineering and consumer goods manufacturing will also significantly boost employment. These industries have considerable export potential, which will be taped.

…

Tourism is yet another major employment generator, apart from being a low-cost way of earning foreign exchange. Considering what we have to offer the world, we must aim at no less than doubling international tourist traffic into India in the next four to five years and facilitating an exponential increase in domestic tourist traffic.

…

The services sector, as a whole is another major employment generator. So is the self-employed sector. Both will be expanded and encouraged with the easy availability of finance and reforms of laws and regulations that stand in the way of their growth.

…

The terms of trade will always be kept in favour of agriculture. While remunerative procurement and support prices constitute a key element of this strategy, it is essential to sustain favourable terms of trade through productivity gains and marketing support.

…

India is one giant common market and must function as one. Unfortunately, there are still many fiscal and other barriers, which are preventing the emergence of a truly national common market. These barriers will be eliminated in consultation with state governments. The objective will be to move towards a system of value-added taxation (VAT) and uniform rules for the treatment of interstate trade.

…

Considering the crucial importance of the textiles industry in India, particularly from the point of view of employment and exports, the Congress will come out with a comprehensive, forward-looking textile policy. This policy will, among other things, deal with issues relating to improving the productivity of cotton cultivation, … substantially increasing the global market share of Indian textiles, etc.

…

International Trade and Investment

Immediate steps will be taken to revive the export momentum in the economy that was so much in evidence in the latter half of the eighties and the mid-1990s. India’s exports must grow by at least 15-20% per year on a sustained basis. All policy and procedural barriers to faster exports must be dismantled. Exports create employment and greatly assist in the diffusion of prosperity but high transaction costs and restrictive policies in areas like the small-scale sector are preventing India from increasing her exports and generating new employment.

Government and industry will work closely together to help prepare a plan of action to cope with the new and emerging challenges in the international trading system. A special effort will be mounted in the areas of agriculture, textiles and pharmaceuticals. The Information Technology sector, specifically software, which has emerged as India’s newest motor of growth for exports, will be given every encouragement.

India will continue to meet all her international treaty and multilateral agreement obligations in a responsible and time-bound manner and will continue to work to use the WTO to gain additional market access for products and services of interest to India. It will proactively participate in all existing and proposed global discussions with a view to influencing the agenda and enhancing its bargaining strength. It will work with other countries to push for faster dismantling of controls on trade in textiles and agriculture. The objective of tariff policy will be to reach levels prevalent in south-east and East Asia in the next two to three years and global levels shortly thereafter.

India will continue to proactively encourage investment from foreign companies and overseas Indians. There is an entirely new generation of entrepreneurial overseas Indians, which is making a mark in countries like the United States. A special effort will be mounted to attract this group of investors and build enduring networks with them. In the last few years, India has received a direct foreign investment inflow of around $ 3 billion per year. This is a very low figure considering India’s requirement for investment and considering the global availability of capital. Our target should be to reach at least 8-10 billion dollars of foreign direct investment inflows early in the next decade.

 

Making Indian trade policy: Indian NGOs demand access to India’s FTA negotiations

The sixth round of India-EU FTA negotiations in New Delhi has Indian NGOs demanding access to “secret” FTA negotiating texts. The Times of India reports that protestors were detained outside the office of the European Commission in New Delhi. A body called the Forum on FTAs (described elsewhere as an umbrella group of 75 organizations) is spearheading these Indian civil society protests. An entity called FTA Watch-India has sprung up recently.

While I cannot comment specifically on the demands of this group in the EU-India FTA context, a discussion on how India makes its trade policy and whether it adequately consults with domestic stakeholders in formulating negotiating positions is much needed. Domestic stakeholders who ought to be consulted include not only NGOs, but also parliament, business, labor unions, farmers groups and consumers. Not much literature is available on the Indian trade policy-making process. There is however an interesting paper by Biswajit Dhar on this in a publication by IISD available here.  See Biswajit Dhar and Murali Kallummal, “Trade policy off the hook: The making of Indian trade policy since the Uruguay Round”, in Halle and Wolfe (eds.) Process Matters: Sustainable Development and Domestic Trade Transparency, IISD 2007.

I had earlier posted on a news report on the low appetite in India these days for new FTA commitments given imminent elections and the domestic impact of the global economic downturn. An Economic Times story shows that the concerns about the EU-India negotiations are not limited to civil society, but also emanate from business and agricultural economic interests.

Speaking to ET last week, a commerce ministry official sought to allay the growing concerns in domestic circles over the proposed India-EU economic agreement. “There are strong complementarities between the EU and India. After all, we have not yet reached the stage of making the trade-offs and so the fears being expressed now are unfounded,” said the official, who was busy preparing for the sixth round of India-EU bilateral talks beginning Tuesday.
This, however, could be an over-simplistic view. There is clearly a need for greater involvement of all stakeholders in the negotiation process. The high-level trade group which had drawn the broad contours of the agreement was not representative enough.
The EU is India’s largest trading partner, accounting for a fifth of India’s total trade and also one of the largest sources of foreign investment in India. As opposed to this, India currently accounts for less than 2% of the EU’s total trade.
Clearly, as things stand now, India has much to lose (or gain) from the agreement as compared to the EU. Note that the agreement would cover a gamut of areas—trade in goods and services, IPRs, cross-border investments, competition policy, government procurement etc. So India’s policymakers ought to be more chary of the proposed pact than their European counterparts. There is a need for more transparency as well as greater involvement of all stakeholders in the negotiations.
Going by the high-level group’s report, India might need to go WTO-plus in the area of trade in goods, with no commensurate reciprocal gestures from the EU side. The agreement would, as things stand now, allow India to keep just 10% of the tariff lines—which include both agricultural and industrial goods—outside its scope.
It may be noted that India has been resisting the multilateral (WTO) trade liberalisation deal even as it did not have to cut tariffs on 5%f agricultural tariff lines and only make less-than-average reductions in another 7%, and looked close to getting the freedom to keep 5% of industrial tariff lines outside tariff reduction formula. Besides, India has already got preferential (zero) access to EU in case of several tariff lines under the GSP system, which reduces the scope for India to gain in terms of reduction in tariff barriers by the EU.

Capacity building in trade policy for Indian diplomats

The Foreign Service Institute in New Delhi is where Indian diplomats learn about trade policy. Here is the Business Standard story:

Where diplomats learn to talk bread

KS Manjunath / New Delhi February 23, 2009, 0:22 IST

Diplomacy in a globalised world increasingly is about mastering the Heckscher-Ohlin theorem, trade policy, absolute and comparative advantage, and economics of scale. With its year-round programmes, the Foreign Service Institute (FSI) in the capital is the place where an Indian Foreign Service (IFS) probationer with a background in veterinary science is taught the finer aspects of economic diplomacy.

The institute’s international economics and economic diplomacy module is designed not just for the heterogeneous annual batch of probationers. Every year, there are three to four courses for Assistants and three courses for Section Officers, who are taught to handle trade enquiries and disputes, conduct surveys to gather data and arrange buyer-seller meets. And Director-rank officers have a mid-career distance training programme on WTO negotiations and the Indian economy.

But the lion’s share of coursework is for probationers. They get the basics of our trade policy, finer points of economic ties with regional trading partners and big global players, and India’s institutional set-up for export promotion.

The FSI has linkages with IIM-Bangalore, the ministry of commerce, RBI, Exim Bank, Sebi, and various chambers of commerce and some industries. The course is under constant review, says FSI Dean, Ajai Choudhry.

Further, over the years the institute has conducted 47 courses for foreign diplomats, teaching them regional economic issues and on international financial institutes such as the IMF and WB. With such programmes for foreign diplomats, India is not just educating them but also generating goodwill, notes the Dean.

Options for protection against imports: mandatory import licences versus safeguards

Here is a curiously interesting report from the Economic Times … the Indian Committee of Secretaries has advice for the Ministry of Commerce:

Apply WTO-approved curbs to ban imports, advises CoS
28 Feb 2009, 0102 hrs IST, Amiti Sen, ET Bureau

NEW DELHI: The commerce department, which restricted the import of a number of items from China this fiscal by allowing only actual users to import them through special licences issued by the government, may no longer be able to take the measure on its own.

The committee of secretaries (CoS), headed by the Cabinet secretary, is of the view that such restrictions could lead to violation of multilateral trading norms established by the World Trade Organization (WTO) and should be used sparingly. It suggested that the decision to impose such restrictions, when absolutely necessary, should be taken by the CoS, a government official said.

The commerce department should, instead, use the WTO-approved special safeguard mechanism (SSM)—where special import duties are imposed to prevent import surges—to help industry against cheap imports, the CoS proposed in a recent meeting.

The commerce department, in November last year, had put a number of items on the restricted list of imports like hot-rolled steel and radial tyres which are being mostly imported from China. Import of all items on restricted list is allowed only by actual users through import licences issued by the government.

The import of restricted products is, thus, totally in control of the government — a situation WTO may not tolerate. “If we are taken to WTO by an exporting country and found guilty of violating WTO rules, retaliatory sanctions can be imposed against our exports,” an official said.

The use of special safeguard mechanism, however, is allowed by WTO as it leads to imposition of additional import duties on products once it is conclusively proved there has been a surge in the import of an identified product leading to domestic market disruption and injury to the industry.

New Delhi has already imposed safeguard duties on four items, all chemicals. The directorate general of safeguards, set up under the department of revenue, carries out investigations following complaints made by the domestic industry against increased imports of a particular commodity.

Once it is satisfied that there has been a sharp increase in the import of a product and has led to losses for the domestic industry, it imposes 200-day temporary import duties on the product. The safeguard duty could be in place for up to three years if the domestic industry continues to be threatened by imports.

With the slowdown leading to contraction in global demand, the government is focusing on protecting the domestic industry against cheap imports.

Thoughts … turf wars?

Also, the Committee of Secretaries view might give ideas to Chinese trade officials about a potential WTO violation here on Indian restrictions on imports of hot-rolled steel and radial tyres. 

And with the global economic crisis and the slow-down in India, there seems to be general protectionist sentiment all-around. In an election year, the Indian government has not much option but to protect domestic industry and very little appetite for signing new FTAs and lowering any tariffs. See earlier post

Agricultural trade policy making in India

Business Line published an article recently that discusses ministerial turf battles in the way trade policy is made in India. Here is the article in full with items of interest highlighted for those interested in trade policy formulation issues:

Harish Damodaran

New Delhi, Jan. 15 The Centre has rejected the proposal to accord statutory status to the Commission for Agricultural Costs and Prices (CACP) while also extending its mandate to provide advice on tariff policy and other trade-related matters.

The Cabinet Committee on Economic Affairs (CCEA), which met here on Thursday, did not accept the recommendation by an Expert Committee under Prof Y.K. Alagh to confer statutory status to the CACP.

The proposal, had it gone through, would have made it mandatory for the Centre to fix the minimum support prices (MSP) for various crops at levels recommended by the CACP. The underlying idea here was to insulate fixation of MSPs from political pressures and subject these, instead, to rational economic principles.

But the Expert Committee’s suggestion was rejected by the Cabinet, ostensibly at the instance of the Union Agriculture Ministry. The latter held that the CACP recommends MSPs well before the start of the cropping season, whereas the crop gets harvested much later.

‘No flexibility’

If the Centre was bound by the MSPs recommended by the CACP, there would be no flexibility to respond to changing market conditions and fix procurement prices accordingly. In such a situation, it was felt that the CACP’s present status as a purely ‘recommendatory body’ be maintained, official sources told Business Line.

The CCEA also rejected the Expert Committee’s proposal to extend the CACP’s terms of reference so as to include, “To advice from time to time on the tariff structure and other measures relating to imports and exports of agricultural commodities and their processed products”.

This would, in effect, have made it mandatory for the Centre to consider the CACP’s views regarding increases or decreases in import tariffs for any agri-commodity and measures to restrict or ban export/import of particular products.

“The opposition in this case came mainly from the Commerce Ministry, which expressed reservations on any role for the CACP to advice on trade and tariff matters, so as to integrate these with MSP policy,” the sources said.

“The Commerce people felt the CACP cannot be authorised to advice on what the tariff levels for individual commodities should be, so as to maintain the MSPs recommended by it. This may result in trade distortions which go against the basic economic principles of free trade,” they pointed out.

The Commerce Ministry, on the contrary, held that the CACP incorporate a member representing the Ministry. This would, in turn, ensure that the CACP would recommend MSPs and related actions that “do not come in conflict with broad trade objectives” and “are compatible with the World Trade Organisation and other bilateral and multilateral arrangements,” the sources added.

The CCEA also rejected the Expert Committee’s suggestion to expand the coverage of MSP and the official cost of Cultivation Scheme to horticulture crops, i.e. fruits and vegetables.

Methodological issues

The Prof Alagh-headed Committee was constituted by the Agriculture Ministry on May 7, 2003 to study various methodological issues in fixing MSPs of crops. Its terms of reference also included examining the existing mandate of the CACP and whether or not to reposition its role so as to provide greater teeth to its recommendations.

The Committee submitted its report on May 31, 2005, which was then forwarded to other Ministries (Finance, Commerce, Food, Planning Commission) for seeking their views before being placed for the Union Cabinet’s consideration.

The author of the report in question, Prof Alagh discusses ministerial turf battles and the difficulties of policy coordination because of bureaucrats unwilling to give up power. See his comment in the Financial Express here. An excerpt:

Finally the real differences. Apparently the government, or parts of it, does not want tariffs to be integrated with price policy in agriculture. It therefore does not agree with the Alagh Committee’s real concern that integrated policy should be followed to give incentives for a competitive agriculture. The report takes crops, works out the efficient farmer set and shows how within tariff bounds, with some monetary policy built in (the Venugopal Reddy simulation), it is possible to hold the farmer’s hand for the transitional period in which he moves over to a lower cost per unit of output, not land, or in which global trade is modernised following Kamal Nath. The report describes this in terms of ‘efficiency pricing’ or other variants of long-range marginal cost pricing, fully aware that it is not talking of industry. Anybody who reasons against this needs to do serious home work.

There seem to be sections of government that don’t want this. We don’t know why. Turf battles could be one reason. Policy coordination is always easy in a textbook and a report but normal persons don’t like to give up power. Only the exceptional become more powerful by shedding power and coordinating for the larger good. Another reason could be the fear of rule based systems for these can dilute the power play in weak coalition regimes. There is a trend in not having a chapter on perspectives in the Eleventh Plan and not accepting the challenge of creating a medium term environment for competitive agriculture. But then you are in real trouble, for to have MSPs and separately free imports is like pouring water in a leaking bucket. You did this at great cost a few years ago in the grain crisis period. Finally there could be the fear of the unknown.

But we are traveling in uncharted territory. After the dithering of the nineties, we are doing a superb job in the WTO. I am sure whatever the first reaction, having accepted a trade dominated regime, we will finally accept the challenge of the rational transition to it. The friendly ghost of the Alagh Committee will keep on coming back and will be exorcised only when we are fully competitive in our agriculture.

Those interested in going deeper, can find out more about the Commission on Agricultural Costs and Prices (the CACP) here.

India to support Lamy for second term as DG

The Business Standard reports:

India is keeping its options open on supporting a candidate for the post of WTO Director- General, although Commerce Secretary G K Pillai stated that New Delhi would back Pascal Lamy for a second term.     
“Lamy is going to seek re-election…we are likely to support him,” a senior Commerce Ministry official today said but quickly added, “what decision will finally be taken, ask me closer to the time of elections, not now”.     

Update:

According to Reuters:

The current head of the World Trade Organisation (WTO), Pascal Lamy, is the only candidate to be the next director-general, since no one has emerged to challenge him for the job, a WTO spokesman said on Monday.

Call for India-EU FTA to be debated in Indian parliament

The role of the Indian parliament in trade policy making has mostly been marginal. While many countries (both developed and developing) struggle with ensuring democratic control over trade policy making through parliamentary supervision, the issue in the Indian context, needs to be considered in the light of the low quality of parliamentary governance in India in policy making overall. While some (perhaps rightly) argue that more parliamentary supervision in India of trade policy making will make any policy reform impossible and create efficiency concerns, the need for democratic control over trade policy making – a component of governance that affects every citizen, is also an issue that cannot be ignored in the long term.

This call from one of India’s leftist political parties for the India-EU FTA to be debated in Parliament is therefore important. According to the Hindu newspaper:

Ahead of the ninth India-European Union Summit in Marseille, the Communist Party of India (Marxist) on Saturday asked the United Progressive Alliance Government not to make any commitment on the Free Trade Agreement without a debate in Parliament.

As Prime Minster Manmohan Singh leads the Indian delegation for the summit on Monday, the Polit Bureau, in a statement, said it was a matter of concern that while the European Parliament had already discussed the issues related to the proposed FTA, the Indiangovernment was yet to share details of the negotiations with Parliament and people.

…

The draft proposals, existing negotiating positions and studies conducted by the Indian government on the India-EU FTA should be placed and debated in Parliament before it initiated any further step, the statement said.

Kamal Nath recognized as Business Reformer of the Year

The Economic Times Award for Business Reformer of the year has been awarded to Indian Commerce minister Kamal Nath. The Economic Times on why he was selected:

When he speaks, they listen. Be it the WTO talks, the Tata-Corus row or the Mittal-Arcelor controversy, commerce and industry minister Kamal Nath has represented India’s interests with a certain missionary zeal. And today, at the high table of global trade, if India is accepted as the de facto representative of the developing world, it’s largely because of this Doon School alumnus.
The judges felt that Kamal Nath, with his unflagging zeal in taking the Indian message to the rest of the world, is the right person to be named political reformer this year. While many equally deserving candidates were discussed, it was felt that a reformer should also be a person who has reached out to make a global statement. The minister, they felt, has not only defended and promoted Indian policy positions on crucial, and often contentious, global issues like the WTO talks, but has also gained the respect and understanding of his counterparts in the international community.
His very name gets the attention of luminaries like WTO director-general Pascal Lamy, World Bank president Robert Bruce Zoellick and European Union’s trade commissioner Peter Mandelson. Trade ministers of many countries sing paeans of praise to the Indian minister for the force with which he resists pressure from the US and EU at the WTO. Kamal Nath’s negotiating skills and networking abilities were in full display at the Hong Kong ministerial meeting of WTO in 2005 and this year’s mini-ministerial, thwarting efforts to win fresh concessions from the developing world.
At the same time, Kamal Nath spoke out in favour of the Tata Group when its efforts to take over Corus were resisted. Similarly, he backed L N Mittal when the Arcelor deal was opposed by some European governments.
The way he manages a packed schedule and travels across the globe to seek FDI and negotiate trade deals is cause for envy among his Cabinet colleagues, it is said. Well, the results are visible with the conclusion of a free trade agreement with Asean and a comprehensive economic cooperation agreement with Singapore.
At home too, Kamal Nath pursues his responsibilities with zest and has managed to make SEZs a reality despite severe resistance from within the government. The introduction of product patents is seen as another feather in his cap.

For the news report see here

Should there be an Indian Trade Organization?

The Hindu carried a report a few days ago on comments by eminent Indian agricultural scientist Dr. M. S. Swaminathan at a conference. He called for an “Indian Trade Organization” as a “national counterpart to the WTO”. The article does not say more about his ideas and what such an organization would look like or do. India does need trade policy making domestic institutional reform but its structure, functions and organization need to be carefully designed. And the Government has no such revamping plans at the moment. What would be the role of Parliament in such a set-up? Also, would there be a place for a more formalised public-private partnership in trade policy making and in market access enforcement?

For a profile of Dr. M S Swaminathan see here

Also see the M S Swaminathan Research Foundation

Bringing American and Indian business together to discuss "Doha, India and the Issues"

This should be an interesting event:

 

DOHA, INDIA AND THE ISSUES:
An Indian Business View of the Doha Round Issues
with Responses from Key U.S. Sectors

A GBD COLLOQUIUM

Tuesday, February 26, 2008
9:00 – 10:30 A.M.
(Registration opens at 8:30 a.m.)
The St. Regis Hotel (Magnolia Room)
16th & K Streets,
Washington, D.C.

India, like the United States, is a country with big interests in each of the three sectors being negotiated in the Doha Round: it is a powerhouse in services, has 700 million people tied to agriculture, and is increasingly competitive in manufacturing.  India’s ability to make the Doha Round work for India will be important for India and for the global economy and quite possibly decisive for Doha Round.    And now, like every other WTO member, India must move quickly if the Round is to be completed this year.   The views of Indian business on the Round and Indian trade policy will be our focus on February 26….

Speakers

T.S. Vishwanath
Confederation of Indian Industry (CII)

Bob Vastine
Coalition of Service Industries

David Salmonsen
American Farm Bureau Federation

John Meakem
National Electrical Manufacturers Assoc. (NEMA)

Moderator

Susan Esserman
Steptoe & Johnson

 

Here’s more on what the event aims to achieve:

Indian Business Spokesman on the WTO and Trade: 9 A.M. Tomorrow, Feb. 26, at the St. Regis Hotel

    WASHINGTON, Feb. 25 /PRNewswire-USNewswire/ -- CII's T.S. Vishwanath
will lead off the discussion at tomorrow's GBD colloquium on Doha, India,
and the Issues. Mr. Vishwanath, head of international trade policy for the
Confederation of Indian Industry, CII, will talk about the trade policy
objectives of Indian business. The program will also include comments from
three key U.S. sectors: services, agriculture and manufacturing. The Doha
Round, the global trade talks that began in Doha, Qatar, in November 2001,
is now at a critical juncture, and India's assessment of those negotiations
will be critical to the outcome. So too will the assessment of the United
States, and tomorrow's colloquium will include key private sector experts
from both countries.

 

 

India’s Tariff Commission – an overview

Since the World Trade Organization came into existence, India has embarked upon institutional reform as well as policy reform. As part of its response to the WTO, India set up a Tariff Commission in 1997.

According to its website, the Tariff Commission functions as an independent expert body to recommend appropriate tariff levels keeping in mind the larger economic interests of  our country. The Commission also conducts studies on costing and price fixation referred to it by Central and State Ministries and Agencies.

The functions of the Commission include providing advice to governments/state agencies upon request on the following subjects:

• to recommend on matters regarding fixation of tariffs and tariff related issues for goods and services
• To evolve an overall tariff structure and look into the issue of tariff rationalisation
• To study critically market access offers received from trading partners as part of the WTO framework and advise government on opportunities and challenges generated by these offers
• To examine the transition period required for selected industries and recommend the gradual phasing-out of tariffs
• To identify the tariffication process for select economic activities
• Classification of goods, and products along with applicable tariff on such good.

In addition, the Commission can independently undertake the following activities:

• To conduct detailed impact analysis of select sectors (textiles,, agriculture, automobiles, information technology , chemicals, steel and engineering goods) through multi-disciplinary teams ;
• To maintain and monitor inventory of tariff rates at sufficiently detailed level and tariff changes in competing and trade-partner countries  
• To carry out technical studies on the cost of production of goods and services and competitiveness in relation to other countries. 

At present, the Tariff Commission is engaged in the following studies:

• Impact of taxes and duties on competitiveness of the Indian Auto Component Industry as compared to Auto Component industry in China and other South East Asian Countries – referred by Department of Heavy Industry
• Export competitiveness of wagon manufacturing units in India – referred by Ministry of Heavy Industries and Public Enterprises
• Benchmarking of Machine Tools Sector, particularly comparison of M/s HMT Machine Tools Ltdwith leading players in the private sector – referred by Ministry of Heavy Industries and Public Enterprises
• Impact of Free Trade Agreement on Domestic Pharma Industry – referred by Ministry of Chemicals and Petrochemicals
• Study on critical analysis of the Impact of Port Tariff Regulation and the effect of such Regulation on EXIM Trade – Department of Shipping, referred by Ministry of Shipping, Road Transport and Highways
• Assistance that can be given to Indian companies to bid for and win infrastructure and economic/social development projects, contracts being multilaterally funded in Africa – referred by Ministry of External Affairs  
• Preparation of data base of items being frequently imported/exported by the Biotech Companies – referred by Department of Bio-Technology  
• Economics of transportation of POL by various modes for suggesting appropriate and optimal model mix – referred by Ministry of Railways  
• Pricing of Levy Sugar – referred by Department of Food and Consumer Affairs  
• Cost-pricing of complex fertilizers, DAP & MoP – referred by Department of Fertilisers  
• Cost-pricing of B-Twill Jute Bags – referred by Ministry of Textiles  
• The competitiveness of Indian Telecom Manufacturing Sector and demand for telecom equipments, handsets, parts and components – referred by Department of Telecommunication

Studies completed by Tariff Commission in 2007:

• Impact of Indo-Singapore Comprehensive Economic Cooperation Agreement (CECA Assessment)
• Quick study of impact of change in royalty rates on coal & lignite on cement prices

Studies completed by Tariff Commission in 2006:

• India’s need for Critical Raw materials & identification of various sources of such raw materials in Asia, Africa and Latin America
• Study on Rules of Origin
• Transportation Tariff Charged by M/s GAIL for Supply of KG-Basin Gas to Power Producers through its pipeline network
• Mechanism for Coal Pricing
• Determination of producer price of natural gas produced by ONGC and OIL
• Revision of Rates in respect of various types of Condoms

According to the website of the Tariff Commission, its services are accessible to “to all citizens and agencies. Groups and associations, companies and organizations, NGOs etc. They can approach the Commission with issues relating to its terms of reference. Studies are selected on the basis of general public relevance of the issue, the nature of the problem and the Commission’s own action plan.”

In my next post on the Tariff Commission, I will comment upon its structure and functioning from the perspective of domestic insititutional reform for better trade policy making.

 

Kamal Nath on FDI, agri reforms, climate change, child labour and SEZs

In an interview to the Indian Express, Indian minister of commerce Kamal Nath answered questions on issues ranging from FDI to agri reforms to climate change and child labour.

On India’s liberal FDI policies

To put this in perspective, India’s FDI regime is one of the most liberal, if you look at the FDI policies in other Asian countries, even Europe and the U.S. It’s not about what you are allowing; it’s about the conditions set in allowing it. You can’t go into civil aviation in the U.S. — even a few percentage points! In New York, I was asked a question on FDI and I countered: When will you allow FDI in civil aviation? We have one of the most liberal FDI regimes in the world. What we don’t have is FDI in a few sectors like retail and defence. But in telecom we allow up to 74 per cent, which few countries would allow. The U.S. would not allow that. The same people who are preaching to us do not have as liberal FDI norms as we do.

On FDI reforms

In Asian countries, the conditions are — get this and that approval, security clearance from various agencies. If it’s allowed, it’s allowed: there must be no element of frustration. From $ 1 billion to $ 2 billion four years ago, last year we got $ 15.7 billion. But there are clauses in FDI policy that say an investor is allowed to put in 74 per cent, but in five years he must disinvest to 51 per cent! These are retrograde policies. Investors say, ‘What the hell, we don’t want to invest!’ To answer your question, the cabinet is going to correct these anomalies, to open up some sectors that were not allowed, such as titanium, because they were strategic minerals. There’s a huge proposal for a titanium project (the Boeing project).

On FDI in retail, in particular multi-brand retail 

There are issues about FDI in retail, and the question is about big versus small. What is the amount that will not rock the boat for the small retailer? For in India retail is complex and is also the largest employer.

… You have electronics, sports goods, pharmacy, food, stationery. The question is, should we just look at retail or segmentise it? We are looking at Commonwealth Games. Can you tell me a single sports goods shop where you can get all sports goods? Retail in electronics is not the retail that will upset the neighbourhood kirana store. There’s a difference: it has just got stamped that FDI in retail will upset all kirana stores.

On the need for agriculture reforms

Look at the macro situation. There are 650 million people in agriculture, but this agriculture is not commerce but subsistence agriculture: 70-80 per cent of it is on one to one and half hectares, which does not work for tractors or pumps. And what are they growing? Not broccoli, a high-end product, but soyabean. What soyabean will you grow on 1.5 hectare! This is not sustainable. We had one agricultural revolution that turned India’s course and made it self-sufficient in food. We then had the IT revolution. We need a second agricultural revolution to turn agriculture from subsistence to commerce.

… Our emphasis has been on pre-harvest investment. Post-harvest investment in agriculture has been very poor. We are the second-largest producer of fruits and vegetables. But only 2-3 per cent is processed, 37 per cent rots. We got to have more investment in post-harvest agriculture. There’s also the problem of small land holdings. Most schemes for marginal farmers, (created) without looking at the economics of it, have not helped.

On climate change responsibilities

When I was environment minister and we signed the climate change treaty, U.S. was not a part of it. Principle number one: Polluter pays. Then consumption patterns: we are not saying everyone must have one less beer, we are asking them to check wasteful expenditure. Principle number two: common, but differentiated responsibility. We have responsibilities, at the end of the day, you occupy more space, you pay more rent. The question is how much. The U.S. has not even agreed to the Kyoto protocol.

On child labour, Nath’s comments go towards the need for a debate on defining child labour.

Where’s child labour permitted by Indian law? We have firm laws. They go somewhere and take pictures and say this is being made for GAP! And the Dutch thing! Their NGOs, along with some Indian NGO partner, printed a story with false computer pictures. The Dutch buyer said this is bogus. The Dutch NGOs put it up on the Internet and starts slandering. The Indian company went to court and the court issued summons that these are false. When the Dutch minister came, I said we’ll take retaliatory action. Now, they are trying to make peace.

…We have to look at the holistic sense. The chap who is doing handloom work sitting at his place, is he a child labourer? You have to look at the context. So much of our heritage, so much of our skills, are passed down from one generation to the other. The tennis player’s eight-year-old son is being forced to play tennis. Is that child labour?

… Child labour is what happens in factories and construction. Go to Kashmir. Children are doing some of the most intricate work. Handloom work in my own district is done by children sitting at home.

On Special Economic Zones (SEZs) see http://sezindia.nic.in/

You cannot mistake the new investment and employment in SEZs. Around 22,000 crore has been invested in SEZs, they are generating so many jobs. What is an SEZ? An industrial cluster for exports, with hospital, training and community centres etc. Where’s real estate in that? All (talk of real estate issues) is imaginary.

The International Energy Agency deepens engagement with China and India

The current global focus on energy, climate change and their linkages with trade and investment policy will require engagement and informed responses from not only the Indian government, but also from Indian businesses in their growth strategies, both in India and overseas. Similarly, investors in India will be looking for opportunities and risks in these policy sectors in India.

As the action intensifies in the World Trade Organization, other multilateral and intergovernmental fora are also key sites where global policy in these areas is being negotiated.

Apart from the Climate Change talks in Bali, which involve trade and finance ministers for the first time, the International Energy Agency is also deepening engagement with both China and India.

India and China are not members of the IEA, whose current membership is limited to 27  industrialized countries. However, the IEA sees itself as entering a new phase in their work with India and China. An IEA press release gives more details:

06 December 2007 Paris — “As China and India become major players in global energy markets, it makes sense to share views with them on our common energy challenges”, said Nobuo Tanaka, Executive Director of the International Energy Agency (IEA) today in Paris. “For the first time ever, the 27 member countries of the IEA have invited high-level Chinese and Indian delegations to participate in “Committee Week” – several days focusing on key energy issues including emergency response preparedness, the outlook for oil, gas and coal markets, energy technology collaboration and energy efficiency measures. “We hope that this interaction will identify further opportunities for co-operation”, added Mr. Tanaka.
The week’s unprecedented activities included the convening of key IEA committees on emergency preparedness, oil markets, long-term policy co-ordination, energy research and technology, as well as the IEA Governing Board. A strong delegation from the National Development and Reform Commission (NDRC) and national oil companies represented China at the IEA. The Indian delegation included senior officials from the Ministry of Power, the Bureau of Energy Efficiency and the NTPC (formerly known as National Thermal Power Corporation). Representatives from all IEA member countries also participated.
“The presence of delegates from China and India around the table in our discussions this week underscores our mutual commitment to continue to work together and to find ways to ensure clean, reliable affordable energy for the future. This is a global challenge that we must face and overcome together”, said Mr. Tanaka.
The IEA has long recognised the accelerating globalisation of energy markets and the growing importance of rapidly developing economies in the shaping of global markets, energy security and environmental sustainability. This week has marked a step change in the IEA relationship with China and India, encouraging their greater direct involvement in the work of its main policy Committees. Much co-operation has occurred with China and India in improving energy data collection, energy efficiency, energy market reform policies, technology and the development of emergency preparedness and response systems. But the magnitude of the challenges calls for greater effort.
The IEA and China will reinforce their work on emergency planning and crisis management during an IEA Emergency Response Exercise (ERE) which will take place next June in Paris. It is designed to prepare IEA member countries for any oil supply disruption, but its lessons are transferable to countries developing their own emergency response capability – especially China and India. The IEA hosted senior Chinese statisticians in late 2007, to prepare a plan of co-operation on energy statistics, including energy efficiency indicator work, to lay the foundations for better informed energy policy-making. Recently, Chinese energy researchers met their IEA member counterparts – a meeting that significantly increased direct collaboration in energy research, development, demonstration and deployment in fields such as renewables, clean coal and demand-side management. A similar step is envisaged with Indian researchers in April of next year. To meet the challenge of climate change, China and India are invited to join the IEA in new work on Financing Low-Carbon Technologies in Emerging Economies.
The 2007 edition of the World Energy Outlook (WEO) focuses on China and India, identifying them as the world’s fastest growing energy markets, and underscores the importance of sharing our experiences with them and learning from theirs. “China and India are simply too important to ignore”, observed Mr. Tanaka. “It is my hope that the discussions during the past days will be a significant impetus for enhanced engagement with China and India”.

Kamal Nath on India’s Century

India’s trade minister has authored a new book titled “India’s Century : The Age of Entrepreneurship in the World’s Biggest Democracy”. A Govt of India press release informs:

…the book presents an account of India’s emergence, from the backwater of global economy to its frontline, generating aspirations for the future based on the recent outstanding achievements. The book explores and goes on to unwind the secret of India’s present day journey of transformation in to a global economy. The book goes on to explain on how an economic engagement by the leading nations of the world with India can be profitable for everybody in the coming years.
The book has gone beyond the ‘flat world’ view and explore his people’s unique can-do attitude and the entrepreneurial spirit that, in combination with economic liberalism, has put the economy on the fast track. The book, published by McGraw-Hill of New York, is a first hand account of Shri Kamal Nath’s ideas, initiatives and his successfully taking the Indian businesses on to the global platform while at the same time, laying a kind of a roadmap for the Indian entrepreneurs to benefit from emerging trade opportunities.

This title is sure to sell a good number of copies, given that many around the world would want to understand Nath’s worldview. India through Kamal Nath is playing a pivotal role in the ongoing Doha talks. Besides, India is being courted by many as a potential free trade agreement partner.