ROLE OF SOUTH IN WTO PROCESSPLUS

INDIA & FREE TRADE

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OVERVIEW OF PRESENTATIONAbout SOUTH & NORTH.

Results of the study.

Role of NGOs & Organizations.

Future strategies.

Indian & FREE TRADE.

About SAFTA.

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Key questions

What is the changing role of south in this competitive era of Globalization?

What is the reason behind INDIA signing free trade agreements?

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sources• Khor, Martin (2002b). “RETHINKING GLOBALIZATION”.

• Madeley John (2003b) “A PEOPLE’S WORLD”

• http://www.twnside.org.sg/

• http://exim.indiamart.com/

• All articles from Third World Network…………

• http://www.imf.org/external/np/exr/facts/groups.htm

• http://www.bilaterals.org/rubrique.php3?id_rubrique=85

• http://www.solidar.org/

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SOUTH CONSTITUTES

They constitute developing nations and it includes LFIs and MFIs.

LFI’s constitute most of the African nations.

MFI’s constitute Thailand, Malaysia, Indonesia.

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ITS WEAKNESSES

Lack of domestic economic capacity and weak social infrastructure owing to colonial experience.

Lack of knowledge on the various aspects encompassing the WTO, IMF, WORLD BANK conditionality.

Bounded by “STRUCTURAL ADJUSTMENT

POLICIES”.

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Evils like dictatorships, abuse of power and economic mismanagement.

High indebtedness, dependence on bilateral aid donors and multilateral loan organizations.

Drastic decrease in the powers of United Nations and its affiliated organizations.

Lack of coordination among NGOs, Govts, Academians etc.

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RESULTS OF THE STUDY

The applied tariff rates for 12 of the 14 developing countries were 22 per cent whereas the permissible rate was 90 per cent and this is owing to loan conditionalities.

The average annual value of food imports in 1995-98 exceeded the 1990-94 level in all 14 countries, ranging from 30 per cent in Senegal to 168 per cent in India. The food import bill more than doubled for two countries (India and Brazil) and increased by 50-100 per cent for another five (Bangladesh, Morocco, Pakistan, Peru and Thailand).

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Decline in agricultural exports due to weak supply response, market barriers and competition from subsidized exports.

In Guyana, there were import surges for many main foodstuffs that had been produced domestically in the 1980s under a protective regime and this led to the displacement of the farmers and agricultural laborers.

There was a general trend towards the consolidation of farms as competitive pressures began to build up and this has led to the displacement and marginalization of farm laborers. The study noted especially the case of Brazil, where consolidation taken place in the dairy, maize and soybean sectors has affected traditional cooperatives and marginalized small farmers.

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NORTH and its strengths

All the developed nations; however USA has more say in the affairs.

Their well staffed departments dealing with international trade and finance

University academics and private and quasi-government think tanks helping to obtain information and map policies and strategies.

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MNCs dictate policies.The developed countries also

have institutions and mechanisms helping to coordinate their policies and positions.

Eg: G-7, European commission, OECD

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Role of NGO’s & Organizations

The Third World Network: It is based in Penang, Malaysia. It has offices in Delhi, India; Montevideo, Uruguay (for South America); Geneva; and Accra, Ghana etc.

ICFTU: It is a world trade union body representing 145 million workers through its 234 affiliated organizations in 154 countries and territories.

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OXFAMSOLIDAR: It is a European

network of social and economic justice, an non-governmental organizations (NGOs) working in development and humanitarian aid, social policy, social service provision and life-long learning.

Action aid, Christian aid etc.

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SADC: South African development community came into existence in 1996 and contributed significantly in uniting the developing nations in ARFICA.

CARICOM: The Caribbean Community and Common Market (CARICOM) was established by the Treaty of Chaguaramas, which was signed by Barbados, Jamaica, Guyana and Trinidad & Tobago and came into effect on August 1, 1973.

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Further SAARC, MERCOSUR, ASEAN, G-28, ACP (African, Caribbean Pacific) countries etc came into existence to leverage on the power of collaboration and to effectively fight the double standards adopted by the rich nations especially USA.

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FUTURE STRATEGIES

There must be enhancement in the cooperation and the thorough dialogue process among south.

They should also strengthen South-South cooperation. Trade must increase to reduce dependence on north.

Pressurize north to adhere to their commitments. (Reduce subsidies by 2013)

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The amber box subsidies should be reduced substantially.

The blue box subsidies should be re-categorized as amber box subsidies and subjected to reduction disciplines.

Reexamination of the green box subsidies can be made to tighten the criteria.

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A special safeguard mechanism (SSM) and the designation of special products (SPs) should be established for developing countries, to enable them to deal effectively with the incidence and problems of import surges.

Democracy must be encouraged to take reigns in war ravaged nations.

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INDIA & FREE TRADE

Free trade agreements (FTAs) are generally made between two countries and it refers to

International trade of goods and services without tariffs or other trade barriers

The free movement of labor and capital between countries

The absence of trade distorting policies (such as taxes, subsidies, regulations or laws) that gives domestic firms, households or factors of production an advantage over foreign ones.

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REASONS FOR FTAs

. To attain the cherished goal of increasing its share in the international trade to 1.5% by 2009 from .9% as of know. India entered into free trade agreements with THAILAND, SRILANKA, ASEAN, SINGAPORE etc

To reduce dependence on developed nations

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INDIA & SRILANKAThe agreement was signed on 28 Dec

1998 in NEW DELHI and it came into full implementation from 1st march 2000.

India agreed to phase out tariffs on Sri Lankan goods within 3 years, while Sri Lanka agreed to remove tariffs on Indian goods over 8 years.

India’s total trade India’s exports to srilanka are valued at more than $1.5 b and it enjoys trade surplus with SRILANKA.

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INDIA & THAILAND

India and Thailand signed FTA on October 09, 2003 and the agreement commenced from 1st January 2004.

A systematic reduction in tariffs to 50% for the year 2004-05, 75% for the year 2005-06 and 100% after 2006 was planned.

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The trade rose to US$430 million in 2005, from US$216.7 million in 2004, with Thailand Analysts forecast a $62 m Indian trade deficit for 2006/07, whereas the deficit in 2005/06 was $51.6 m.

Exports of Chinese goods through THAILAND

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INDIA & SINGAPORE

Comprehensive Economic Cooperation Agreement (CECA) was entered between India and Singapore in 2002.

The total trade between India and Singapore is currently estimated at $10 b and it is expected to touch $50 by 2010.

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SAFTA

South Asia Free Trade Agreement was agreed to among the seven South Asia countries that form the South Asian Association for Regional Cooperation (SAARC): Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

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Issues are

Rigid stand of Pakistan.

Afghanistan is planning to join SAFTA.

Trade among SAARC countries is just $6 B.

Agreement will come into effect by 2016.

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Further, India is contemplating to enter into free trade agreement with Brunei, Indonesia, Malaysia by 2011 and with Philippines, Cambodia, Laos, Myanmar etc by 2016.

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