India gets isolated on WTO: European Union, Australia-led group unite against India

Washington: The US, the 25-country Australia-headed group and the European Union have expressed disappointment over India’s stand on worldwide reform of trade facilitation rules saying “backsliding” on commitments has brought the WTO to the brink of crisis.

At the meeting of the 160-member World Trade Organisation in Geneva on Friday, India demanded a halt to the trade facilitation (TF) timetable till a permanent solution on public stockholding for food security is found. The meeting was to finalise a deal on TF that was agreed at talks in Bali last December in the WTO’s first ever global trade agreement. Without directly identifying India, the United States expressed its deep disappointment over lack of progress on the TF agreement.

“We are deeply disappointed that backsliding on Trade Facilitation has brought the WTO to the brink of crisis,” the US Trade Representative, Mike Froman, said. India’s stand at the WTO was supported by Cuba, Venezuela and Bolivia.

Meanwhile, the Australia-led group said in a statement, “A decision to step away would be in no one’s interest. It would seriously undermine the ability of the WTO to deliver for the future”.

The European Union in another statement said if the TF Protocol is not adopted by July 31 a big prospect to mobilise trade as an instrument for growth and progress would be lost, which in turn would impact the credibility of the WTO.

“Without adoption of the Trade Facilitation Protocol by July 31, a great opportunity to mobilize trade as an instrument for growth and development would be lost, and the credibility of the WTO, which has during the financial crisis proven its value as a firewall against protectionism, would be further damaged.”

The European Union added that it was not willing to renegotiate the “basic elements or timelines.”

Kerry may take it up with India

The issue, if not resolved by early next week, has the potential to cast a shadow on a planned visit to New Delhi by US Secretary of State John Kerry, which begins on July 30, observers say. The Obama administration refused to comment on the possible impact of India’s stand at WTO on the India US relationship. However it is expected to figure prominently during the next week’s India US Strategic Dialogue in New Delhi.