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WTO Calls Review Meet, India Opposes E-comm in Agenda

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Experts say the Aid for Trade meeting in July may be a back door attempt by other nations to push e-commerce
The World Trade Organisation has called a review meeting to promote connectivity through digital trade in developing countries, particularly least developed countries, amid strong opposition by India owing to apprehensions among experts that this may be a back door attempt to push e-commerce. The aim of the evaluation, which will take place, in July is development of e-commerce, infrastructure investment, services markets and investment in climate reforms.
 
Moreover, the global review of Aid for Trade is influential in galvanising support and directing strategies to help developing countries derive the maximum development benefit from trade.
 
“The strategy is to sell e-commerce to the African nations and get their critical support. If Africa comes in support, then the ecommerce deal is done. It will be pushed as being development friendly,“ said a Delhibased trade expert, requesting anonymity.
 
In 2015, the Aid for Trade meeting was based on reducing trade costs which culminated in the trade facilitation agreement for goods.Unlike trade facilitation, though, there is no mandate for e-commerce to be taken up in the agenda, and hence India is opposed to its inclusion.
 
India is not in favour of deliberating ecommerce in the WTO because the sector is sensitive to opening of foreign direct investment and the same has been opposed by small retailers. Besides, India wants to conclude the pending food security related issues before allowing any fresh issues to be taken up in the trade body.
 
The review meeting is also likely to touch upon how foreign direct investment can lead to inclusive growth in Asia and reduced trade costs in Africa.
 
Investment is another contentious issue since India has always maintained that investment and investment facilitation are matters of domestic policy and outside the purview of the multilateral forum as it restricts the right of countries to regulate investment.
 
Both trade facilitation and investment are part of the issues emanating from the WTO ministerial conference held in Singapore in 1996 that were opposed by most developing countries till a few years ago. “Though India has never engaged actively in this meeting, one must remember that it is a flagship event of WTO and sets the stage for African countries' stance,“ the expert said.
 
African group's support is crucial because it recently junked India's proposal on trade facilitation in services to ease services trade and movement of professionals across borders citing high compliance cost.
 
Five proposals on investment and investment facilitation have been submitted to WTO. Brazil and Argentina submitted a joint paper, China made its own proposal, and one paper was from MIKTA group comprising Mexico, Indonesia, Korea, Turkey and Australia.
 
Eight countries, including Pakistan, made a submission to WTO under the name Friends of Investment Facilitation for Development. Russia also floated a paper on this matter.
 
Apprehensions about a multilateral system for investment facilitation exist because it is seen to open a window for investor protection, something that the Russian proposal mentioned. 
 
The Economic Times New Delhi, 22nd May 2017

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