While speaking at India-Turkey Business forum 2018 which was organised by Federation of Indian Chambers of Commerce and Industry (FICCI), Union Minister of Commerce and Industry Suresh Prabhu said, "I am happy to say that India will be 5 trillion dollar economy in coming 7-8 years and already we have complete road-map for it. Yesterday, we launched major program for making 1 trillion dollar of manufacturing in India that will happen in next 6-7 years; comprehensive plan has been prepared."

In a landmark agreement, the World Trade Organisation (WTO) consisting of 159 member countries reached its first trade deal since its inception in 1995, marking a major victory for India as it was able to get its way on ensuring food security and minimum support price for its farmers.

The deal includes a trade facilitation agreement which aims at simplifying customs procedures and reducing transaction costs for goods and services. This pact is estimated to add $ 1 trillion to global trade and add 21 million jobs across the world.

The breakthrough at the Bali ministerial meeting of the WTO was reached after intense negotiations. At one point, given India’s strident stand on not compromising on the issue of food security, it looked like the talks would collapse.

India has ensured that countries will be allowed to provide subsidy on food crops without any threat of punitive action.

Commerce and Industry Minister Anand Sharma, who led India at the talks, described the decision as historic.for India. "India has played a major role in the revival and re-energising the Doha Round of talks. The Bali declaration is a positive step," Sharma was quoted as saying. The Food Security Act of India had cast a legal obligation on the government to assure the poor of supply of food grain and it was fighting to ensure that these obligations do not violate WTO rules.

As notified by India to the WTO, India’s support for rice and wheat is well within its 10 per cent limits on subsidy. However, in the absence of the protection that has now been agreed, there was imminent danger of breaching it in the near future.

Procurement at administered prices and the public distribution system are the main pillars of the National Food Security Act. In the absence of this decision, it is likely that India will breach its within the next few years.

The agreement today has ensured that millions of poor farmers will feel secure that the Minimum Support Price (MSP) being given by the government will not be called into question internationally and possible challenges under the WTO. This will be in place till such time a permanent solution is found by the WTO membership which alters the rules of business governing agricultural trade. According to the Indian delegation, it is for the first time in the history of WTO as an institution that an important issue relating to food security has been squarely addressed.

It is an acknowledgement of the felt need to rewrite the rules of agricultural trade and provide a balance for the developing countries.

The WTO text which has been agreed upon by the larger membership today marks a fair balance reflecting the aspirations of both the developed and developing countries. The Indian side okayed the trade facilitation agreement after seeing a balance in the agriculture package.

During the negotiations, India had remained firm and unwavering in its stand over the last three days which saw a softening of positions by key developed countries. It built a strong coalition of support with countries of Africa, Latin America and Asia. India also stood up for the cause of the Least Developed Countries (LDC).

On the trade facilitation agreement, it is felt that it will improve competitiveness of Indian industry both in domestic trade and international trade.

Industry has welcomed the trade deal reached at the Bali Ministerial Conference of the WTO. FICCI President Naina Lal Kidwai said, “We congratulate our minister for successfully protecting India's and developing countries' legitimate concerns on food security while enabling the trade facilitation advantages to come through”.

Hailing the trade facilitation agreement reached by WTO members after hectic parleys, India Inc and exporters on Saturday said these will help developing countries like India to reduce transaction cost and improve competitiveness of domestic industry.

“The WTO Agreement on trade facilitation will make life much easier for Indian exporters since the pact will ensure uniform, transparent and efficient transactions at the customs and port operations across the world,” Chairman of engineering exporters’ body EEPC India, Anupam Shah, said, adding, “Our efficiency and transaction costs will improve by leaps and bounds, once the agreement comes into operation.”

After four days of marathon negotiations at Indonesian island city of Bali, Trade Ministers from 159 countries agreed on the Bali Ministerial Declaration, which comprises texts on trade facilitation, food security and development and LDC issues.

“While agreement on food security will ensure a fair deal for the subsistence farmers and the vulnerable sections in the developing countries, the deal on trade facilitation will improve efficiency at the international trade borders and reduce the transaction costs, particularly for the Indian exporters,” Assocham Secretary General D S Rawat said.

“We welcome the declaration on trade facilitation, which will not only boost transparency and predictability but also help in reducing transaction costs for businesses across the globe,” Deep Kapuria, who led CII’s business delegation to the WTO Conference, said.

“We are very happy with the agreement on trade facilitation that would help in reducing transaction costs, cutting red tape, improving transparency besides simplifying and streamlining customs and port procedures,” FICCI President Naina Lal Kidwai said.

In recent years, India has undertaken reforms to simplify and modernise its trade procedures. As a developing country, India will be entitled to adequate transition time for implementing the Trade Facilitation Agreement.

A global trade deal at World Trade Organization's ministerial meeting in Bali next week faces fresh roadblocks as member countries, including India, have hardened their positions on key issues of trade facilitation and farm subsidies.

The Cabinet is likely to take a call on Thursday on India's stand at the meet.

The Doha round of global trade talks, which began in 2001, were stalled due to sharp differences between developing and developed countries due to lack of consensus on farm subsidies and tariff reduction. Several experts see the ninth ministerial round at Bali next week as the last attempt to renew the global trade agreement agenda by focusing on trade facilitation, which is estimated to increase global trade by $1 trillion.

However, countries, including India, have raised resistance to the 'transit clause', leading to breakdown of talks aimed at sealing the first global trade deal since the WTO came into existence in 1995. Several developed and developing countries are against the inclusion of electricity grids and petroleum pipelines in the definition of traffic in 'transit'. India, for instance, will have to allow any member country under this definition to use the country's infrastructure for supplying petroleum and electricity to a third country.

The trade facilitation deal, aimed at smoothening of crossborder trade by removing red tape, improving infrastructure and harmonising customs procedures has therefore hit an impasse.

"The red lines are clear which haven't been resolved at the negotiation level and will be transmitted to the ministers. We can still have a deal on food security and package for the least developed countries. However, it is the trade facilitation which may be a stumbling block," said Biswajit Dhar, director general, Research and Information System for Developing Countries. India has got its way on most demands including flexibility on issues such as expediting shipments.

The clause has been changed to include only air cargo and perishables at the shortest time possible, against expediting all shipments within three hours. But as WTO director general Roberto Azevedo warned at the pre-Bali meeting on Tuesday, "At this point in time we cannot tell the world that we have delivered. Failure in Bali will have grave consequences for the multilateral trading system."

India is also opposed to the 'peace clause' that aims to provide protection against penalties for breaching agricultural subsidy limit of 10% of the total production for four years. The riders in the clause such as stiff disclosure norms and no guarantee on a permanent solution to food security issue have met with stiff resistance in the country.

Even as the government indicated initial acceptance to the four-year peace clause, a compromise formula to the food security agenda, it hardened its stance after farmer lobbies and opposition parties voiced their resistance. India had been strongly negotiating the food security proposal of the 46 developing countries that aims to remove procurement from poor farmers to support them or to fight hunger from the WTO-prohibited subsidies.

"We want the peace clause to come with the condition that a permanent solution to the food security agenda will be found. The current draft is ambiguous on that front," a commerce department official said. The peace clause is not in India's interest, the leader of opposition in Rajya Sabha, BJP's Arun Jaitley said on Wednesday. "Our food security programmes would still be exposed during this period to punitive action under the Agreement for Subsidies and Countervailing measures. This may force India to substantially limit the food security programme immediately."

Industry lobby FICCI's president Naina Lal Kidwai, however, stressed on the need to work towards a deal. "It is important that we do not lose this opportunity to break the stalemate in Doha talks and that we are successful in building on the progress achieved so far in the areas of trade facilitation, agriculture including public stockholding for food security and development issues," Kidwai said.

India seems ready to settle for a short-term solution to the problem surrounding its food security legislation that breaches the permissible subsidy levels set by the World Trade Organisation (WTO). The country may agree to a ‘peace clause’ which provides a temporary reprieve from penalties in the event that the subsidy level is breached.

In what will be a further softening of stance, India may also agree to the demand of developed countries for a pact to facilitate movement of goods across borders.

But Commerce Minister Anand Sharma does not see these concessions as a dilution of India’s earlier stand. It is about finding a middle ground that is acceptable to all, he said.

At a joint press conference with WTO Director-General Roberto Azevedo here on Monday, Sharma said, “You don’t do negotiations with a tight list and say this is the final list. I don’t want any ambiguity on food security. Its legitimacy has been appreciated, and the negotiators will find an acceptable solution to that.”

At the WTO, the developed countries are willing to offer a ‘peace clause’ that will allow developing nations, such as India, legal protection against action by other members for breaching food subsidy limits prescribed under the agriculture pact. This would be offered for a two/three-year period within which time the members hope to find a long-term solution to the issue.

WTO members are trying to arrive at an agreement on a small package of issues, which includes Trade Facilitation and Food Security, at the forthcoming Ministerial meeting in Bali, Indonesia.

“There is appreciation of the legitimacy of food security concerns in India and other developing countries. Work is going on intensely to find a solution, which will probably include a ‘peace clause’. Conversation for a long-term solution will happen very meaningfully after Bali,” said the WTO Director-General, who is in India to seek the country’s support for making the Ministerial a success.

Sharma said that India too favours a Trade Facilitation pact as long as it is balanced and serves the interests of both developed and developing countries.

Azevedo, who also addressed industrialists at meets organised by the CII and the FICCI, said that the Bali Ministerial was not the end of the road for the Doha Round. “It is one first step towards an agenda that we have to define for the WTO that delivers on areas of interest in developing and developed countries alike,” he said.

Asserting that India would soon be breaching its Aggregate Measurement of Support (AMS) commitments to WTO (World Trade Organization) due to its new food security programme, the newly-elected Director-General, Roberto Azevedo, on Monday, sought a positive solution to the issue before the Bali Ministerial to be held in December as some countries had expressed concern over the procurement and distribution of highly subsidised foodgrains.

Speaking separately at events organised by Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI), Mr. Azevedo said India had asked the WTO to work out a solution as it was keen to win legitimacy for its ambitious food security law that promised highly subsidised foodgrains to rural and urban poor. “We have agreed in Geneva on a certain issue, and are working on a ‘peace clause’ to find a permanent solution to the issue. India will soon be breaching its AMS commitments in the WTO. So, they are asking for some kind of action in Geneva that could allow those programme to continue to work unaffected till a final solution is found,’’ the WTO Director General said.

He said the Bali Ministerial meet would look at how this permanent solution would come. The Peace Clause in Article 13 of the agreement on agriculture (AOA) has been there for nine years. India is open to accepting a Peace Clause as an interim mechanism till an acceptable final solution is arrived at. India is also ready to commit that procured foodgrains would not be released for international trade and the management of public stocks would be done in a transparent manner, the official said.

The UPA II government is at present implementing the Food Security Act which entitles 82 crore people to 5 kg of foodgrains per person in a month at the rate of Rs.1-3 a kg. The country needs 62 million tonnes of foodgrains in a year to implement the law. “The initial proposal on food security, which was tabled by G-33, was immediately rejected by many countries for different reasons. However, we have made lot of progress since that point of time. From upfront rejection, we now are building environment for very constructive engagement that will try to address this issue in a positive manner,’’ Mr. Azevedo said.

Mr. Azevedo underlined the need for national governments to show flexibility to evolve a consensus on a multilateral trade package that was meaningful and doable.

“Time is running out, and it is imperative that Trade Ministers actively engage with one another in the weeks ahead to find a common ground, failing which plurilateral, multilateral and bilateral agreements will proliferate and many countries will be denied the benefits of a rule-based approach to trade liberalisation. The markets will then open on non-MFN basis, and the ticket to admission into these agreements will be far more expensive than a WTO-led multilateral trading system,’’ he added.

Even as negotiations are on in Geneva on the draft agreements to be presented to trade ministers of World Trade Organisation (WTO) member nations, the Director-General of WTO, Mr Roberto Azevêdo, today underlined the need for national governments to show flexibility and reasonability to evolve a consensus on a multilateral trade package that is "meaningful and doable".

Addressing a seminar on "WTO, Multilateral Trading System and Bali Ministerial: Where Do We Stand & The Way Forward" organised by Ficci and Centre for WTO Studies, Mr Azevêdo said time is running out and it is imperative that trade ministers actively engage with one another in the weeks ahead to find a common ground, failing which multilateral and bilateral agreements will proliferate and many countries will be denied of the benefits of a rule-based approach to trade liberalisation.

“The markets will then open on non-MFN basis and the ticket to admission into these agreements will be far more expensive than a WTO-led multilateral trading system,” he said.

“Although Bali is a priority, it is not the end of the road. We are talking about taking the first step. At Bali, what we want is a long-term strategy,” he said.

India will have to furnish details about its ambitious food subsidy programme and how it plans to balance it with the export of foodgrains if it wants an agreement in the Bali ministerial in December.

According to officials, developed countries have sought details about the National Food Security Ordinance and its impact on India’s stock requirement even as the French think-tank CIRAD has favoured India and argued for the need to correct WTO rules for public stocks else it will lead to unfairness and bad incentives.

“It should not be a problem for India to give these details as the agreement will be based on these. The developed countries want to know the modalities of the scheme and if it will impact exports and how the balance between the piled-up stock, exports and subsidies is to be maintained,” said an official.

India on its part said that some the subsidies that are given as part of the procurement for public stockholding from poor and marginal farmers should not be regarded as a ‘prohibited subsidy’ or ‘amber box’ subsidy by the WTO. Presently, these are prohibited under WTO norms.

In WTO terminology, subsidies are identified by “boxes” that are given the colours of traffic lights: green (permitted), amber (slow down or to be reduced) and red (forbidden).

“Ironically, the US’ food stamp programme, which is pegged at $60-70 billion every year, is already in the WTO green box. The current rules are unfair as they say that India can’t continue with its minimum support programme and they go against India’s interest,” said Abhijit Das, head and professor, centre for WTO Studies, Indian Institute of Foreign Trade.

The issue is likely to be raised by commerce and industry minister Anand Sharma with director-general of WTO Roberto Azevêdo on the latter’s maiden visit on October 7. Azevêdo is coming to garner support to get an agreement on three critical issues of the Doha Development Agenda (DDA) — trade facilitation, agriculture and development/LDC issues.

This is Azevêdo’s first visit to India since he took over as WTO DG from Pascal Lamy in early September. Since the ninth WTO ministerial conference in Bali is just eight weeks away, the WTO DG’s visit is significant and crucial given India’s important role in the multilateral trade negotiations.

On September 30, Azevêdo told WTO ambassadors at the Trade Negotiations Committee meeting that: “Political engagement of capitals is becoming increasingly critical. I am also asking your ministers to consider the bigger picture – the fate of our negotiating arm and with it, the DDA. But more importantly, as I have repeatedly stressed, at stake is the credibility of the multilateral trading system itself”.

On his visit, besides meeting Sharma, the DG will also interact with industry chambers.

FICCI and Centre for WTO Studies are jointly organising a seminar on ‘WTO, Multilateral Trading System and Bali Ministerial: Where Do We Stand & The Way Forward’.

WTO members initiated negotiations on Trade Facilitation (TF) in 2004. The ongoing WTO negotiations on TF seek to develop a set of multilateral trade rules that aim to simplify, modernise and harmonise trade procedures with a view to ensuring smooth movement of import, export and transit goods across the international borders.

“The developed countries are collectively trying to clean up the proposals of their interest, while maintaining frivolous objections to the proposals tabled by developing countries. They are reluctant to accept the trade facilitation proposals tabled by developing countries and LDCs,” added a commerce ministry official.

For instance, they want India’s proposal on Customs Cooperation to be accepted on a ‘best endeavour’ basis, while their proposals are to be accepted by developing countries on a binding and justiciable basis,” said a commerce ministry official.

India, along with other emerging and developing countries are against a deal on trade facilitation, which is being pushed by rich countries that seeks to cut transaction cost along international borders for smoother flows of goods, until and unless they agree to conclude the discussion on the food security proposal.

New World Trade Organization (WTO) chief Roberto Azevedo will meet Commerce and Industry Minister Anand Sharma on Monday to discuss issues such as trade facilitation pact ahead of the global trade body's meet in Bali, sources said. Azevedo will also meet members of Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry.

New WTO chief Roberto Azevedo will meet Union commerce and industry minister Anand Sharma tomorrow to discuss issues such as trade facilitation pact ahead of the global trade body's meet in Bali, sources said.

Mr Azevedo will also meet members of industry body CII and FICCI.

“The new WTO director-general and Mr Sharma will discuss issues such as trade facilitation agreement (TFA), food security and a package for least developed countries,” a senior official in the commerce ministry said.

India has said that it would proceed on any agenda of Doha Round only when developed countries, including the USA, agree to a deal on food subsidies.

The ninth WTO Ministerial Conference will be held in Bali from 3-6 December. The Ministerial Conference is the highest decision-making body of the 158-member WTO which meets at least once every two years.

During his maiden visit here, Mr Azevedo will apprise Indian industry of the state of play in the ongoing negotiations to clinch a global trade deal.

Mr Azevedo took over as WTO DG from Mr Pascal Lamy in September.

On the other hand, developed countries want India and other developing economies to agree on trade facilitation agreement (TFA).

So far under the Doha round of global trade talks, which started in November 2001, TFA has emerged to be the only such area where there is some hope of a consensus.

The TFA aims to reduce red tape on international borders and enhance customs cooperation leading to smoother flow of consignments and significantly reduce transaction cost of exporters.

On food security issue, a French think-tank CIRAD has advocated to correct WTO rules for public stocks.

Developed countries, especially the US, are seeking more market opening commitments from emerging economies like China and India, something that has stalled the Doha round of global trade talks under the World Trade Organization (WTO). In an interview with Nayanima Basu, on the sidelines of a Ficci seminar, Harsha Vardhana Singh, deputy director general, WTO, said he was hopeful of the issue getting solved by 2014, during the next minister-level meeting. Edited excerpts:

You said in your address to Ficci today the Doha round of talks was in a stalemate, as the US wanted more obligations from countries like China and India. Could you elaborate on this?

It is not just the US. The developed world feels, in which the US is a prominent part, emerging economies should take more responsibilities. So, when you look at it from the emerging economies’ angle, these feel the level of poverty to be addressed and the development initiatives that are needed in their respective countries, it would not be reasonable for others to seek substantially higher levels of obligations than what these are offering and there is a gap in the perception.

Do you see this gap closing anytime soon during the upcoming ministerial meeting in 2014 and 2015, by which time you said you were hopeful of the Doha talks coming to a conclusion?

I hope so. But we need to see how the global system develops, how much of a political sensitivity, for reaching conclusions in a multilateral system, is of use and is beneficial to all of us. Right now, we are seeing market-restricting measures, which shows an increasing emphasis on domestic concerns without adequate recognition to the positive role played by a multilateral framework in this context. And, as I said, this multilateral agreement under WTO is important to address major problems today and is important for the future, too.

Now that the US is heading for another Presidential election, how difficult will it be to bring countries back on the negotiating table and complete the Doha round in a serious and credible manner?

They are there. There is seriousness expressed. The fact that progress is getting achieved in some areas shows the members’ seriousness. But there are other issues to be addressed. Of course, a period before the election makes it somewhat politically uncertain on exactly the position that country will be taking. But, yes, there are discussions and progress. However, it is not spreading across the board.

How is the WTO viewing the recent spate of disputes taking place between the US, and India and China? Is it a fallout of what is happening at the Doha round of talks?

WTO has a credible method of readdressing these sorts of disputes, which reduces tensions. Bringing disputes to WTO are a normal part of the system. It is not as if we have got extremely high-level of disputes which have suddenly peaked. It is not that. These are normal ups and downs. There are different factors that give rise to such disputes. The important part is that there is a disciplined mechanism to settle these and avoid tensions.

Is there an attempt to bring in new issues like climate change clandestinely into the Doha Development Agenda, and do away with the older mandate?

Well, whatever is discussed in the negotiations is privy to those parties and I do not sit in those meetings. But at present, basically the discussion is on getting whatever we can or whatever the members can from the Doha mandate, as it exists and to the extent if there is any discussion of any type would be on a different platform. But within the Doha round the focus right now is to try and see whatever can be achieved in whichever sequence. The focus till now is that, but of course members keep discussing other issues which I am not privy to.

What is the progress on some of the main sticking points of the Doha talks like, reduction in agricultural subsidies and cotton?

We have moved a lot on domestic support for agriculture. But it gets linked with the single-undertaking. On cotton discussions have been going on. Last month the Cotton-4 ministers had visited US and it is now linked with the US’ Farm Bill. In my understanding, to the extent market access issues are addressed, we should be reaching a conclusion in these other aspects. So, it is mainly the market access.

What is WTO doing in this era of increasing protectionism stance being taken by countries to address domestic concerns in the face of a financial crisis?

Three per cent of the world trade today depends on the restrictive measures taken. Concerns are being raised at the highest level in the WTO. Countries are taking note of this and they are taking a look at the factual basis and trying to see how it relates to coverage of various kinds of restraint. Countries are taking these market restrictive measures without looking at the overall perspective. So, they need to analyse the cumulative effect of this and should they be more careful.

The 155-member countries of WTO should agree to a scaled down version of the much delayed global trade pact due to continuing differences between the developed and developing nations, a top official suggested on Thursday.

"People have realised that it is not possible to have a single undertaking agreement on Doha Round currently, that is what ministers have agreed...," Harsh V Singh, WTO Deputy Director told a FICCI meet here.

It may be recalled the Doha Round of negotiations for a global trade pact launched in 2001 could not be concluded because of clash of interest between the rich countries and developing nations on issues like agriculture and market opening.

According to Singh, the emerging economies do not agree with what other members expect out of them.

"Over time, we have to see how the gap is closed and to that extent we can even have this in different aspects of the Doha Round coming in partial conclusions.

Member countries are not yet close to resolving their differences and concluding the over-a-decade-long Doha Round negotiations for a global trade deal, a top World Trade Organisation (WTO) official has said.

Efforts to close the gap are progressing only ‘bit-by-bit’, the WTO Deputy Director-General, Dr Harsha V. Singh, told reporters on Wednesday on the sidelines of a FICCI event. He said a pick up in the global economy could be conducive for further progress in ‘larger bits’.

Asked about a new deadline for the conclusion of the Round, Dr Singh said there would be a Ministerial meeting next year to review the progress. As agreed by member countries, there would be a Ministerial meeting every two years, which means the next one would be in 2015, he added.

Earlier, Dr Singh said “hopefully after the forthcoming US elections, the member countries would be able to address several issues more satisfactorily”. He also cautioned that increasing protectionist measures by countries, as shown by a recent WTO report, were affecting world trade.

On the stalemate, Dr Singh said the US had been insisting that economies such as China and India that have recorded huge growth should be ready to shoulder larger obligations (opening their markets).

However, China and India felt that though they had been growing, there was still a large share of population that was poor and needed a safety net. Therefore, these countries felt it was not fair to ask them to take additional responsibilities at this point, he said.

The US and the European Union have been asking emerging market economies to commit to greater reduction in tariffs of industrial products, while developing countries want the rich nations to drastically reduce their ‘trade distorting’ agricultural subsidies.

Noting that many countries were entering into free trade agreements, Dr Singh said they would soon realise the need for harmonisation of standards and find that a multilateral agreement under WTO was best suited for them.

India today sought investments from Brazil, mainly in the infrastructure sector for which it needs $1 trillion over the next five years, as the two countries set bilateral trade target of $15 billion by 2015.

Commerce and Industry Minister Anand Sharma, on a 4-day visit to Brazil, said businessmen of both the countries can cooperate in sectors like agriculture, textiles, IT, infrastructure and pharmaceuticals.

"Huge opportunities are available in both the countries. Currently the bilateral trade is at $10 billion. Both the sides have fixed the target of $15 billion by 2015. Trade is increasing but huge potential is there to further boost it," Sharma said here at a function.

He sought investments from Brazil in setting up of the National Manufacturing and Investment Zones (NMIZs).

The government is taking several steps to increase the share of the manufacturing sector in the GDP to at least 25% by 2020 from 16 per cent at present. For this, a new National Manufacturing Policy (NMP) was announced recently, which envisages setting up of NMIZs.

They will be mega industrial zones with world-class supporting infrastructure. The government is offering a host of incentives and a liberalised labour and environment norms to promote these zones.

Sharma, who is leading a FICCI business delegation here, said that entrepreneurs of India and Barzil can also come together in other areas of infrastructure like ports, airports and railways.

"India is expected to absorb about $1 trillion investments in the infrastructure sector in the next five years. Brazilian companies should participate in it," he said.

Besides, industry chambers, the minister met his Brazilian counterpart Fernando Pimentel in Brasilia and discussed ways to increase economic cooperation.

FICCI President R V Kanoria said education is one of the important sectors for both the countries for increasing engagement.

"Several Indian companies can help in this sector. We have expertise in distant education field. Our present trade is concentrated in oil and its by-products. The potential between the two countries allows us to expand and diversify our trade," Kanoria added.

At present, few Indian companies like Renuka Sugars are operating in Brazil, while some Brazilian firms are operating in India in sectors such as biofuels.

Brazilian industry also sought investments from India in infrastructure sector in the wake of Olympics game being hosted by Brazil in 2016.

Commerce and Industry Minister Anand Sharma today said India has not violated any provision of multi-lateral trade agreement by issuing compulsory licence (CL) for patented anti-cancer drug — Nexavar — to be produced and sold at a much cheaper cost in the country.

"We have not violated of any WTO agreement...This (invoking CL) is very much in conformity with the international agreement under the WTO," Sharma said here while addressing industry leaders of pharmaceutical sectors.

Sharma is leading a FICCI business delegation, mainly consisting of players from pharmaceuticals industry, to Brazil.

In March, Hyderabad-based Natco Pharma was allowed to manufacture and sell cancer-treatment drug Nexavar at a price over 30 times lower than charged by patent-holder Bayer Corporation, under compulsory licensing (CL).

The German firm has already filed an appeal against the Indian Patents Office's order with the Intellectual Property Appellate Board.

As per the WTO agreement, a CL can be invoked by a government, allowing someone else to produce a patented product or process without the consent of the patent owner in public interest.

India's intellectual property rights regime is fully TRIPS-compliant, the minister said, adding that the developed nations have invoked CL more than developing economies.

"In case of India, this was the process of adjudication. It was not an executive invocation," he added.

He said around the same time when India had issued the CL for anti-cancer drug, the US government, through an executive order, placed an order with Indian company for anti-cancer drug.

Natco was allowed to sell the drug at a price not exceeding Rs 8,880 for a pack of 120 tablets required for a month's treatment compared to a whopping Rs 2.80 lakh a month charged by Bayer for its patented Nexavar drug.

Seeking greater cooperation in pharmaceutical sector, the minister informed the industry leaders that India is the third largest medicines producer in the world and produces 20% of world's generic drugs.

According to sources, the minister took up several problems of Indian pharmaceutical sector during his meeting with Brazilian Minister of Development, Industry and Foreign Trade Fernando Pimentel.

"The minister raised the issue of requirement of multiple testing despite having approvals from agencies like USFDA, delayed registration of products in Brazil, delay in port clearances and fast tracking of issuing of import licenses," sources said.

On the occasion, industry leaders too raised their problems and concerns which they are facing here.

India today sought investments from Brazil, mainly in the infrastructure sector for which it needs $1 trillion over the next five years, as the two countries set bilateral trade target of $15 billion by 2015.

The Commerce and Industry Minister Mr Anand Sharma, on a 4-day visit to Brazil, said businessmen of both the countries can cooperate in sectors like agriculture, textiles, IT, infrastructure and pharmaceuticals.

“Huge opportunities are available in both the countries. Currently the bilateral trade is at $10 billion. Both the sides have fixed the target of $15 billion by 2015. Trade is increasing but huge potential is there to further boost it,” Mr Sharma said here at a function.

He sought investments from Brazil in setting up of the National Manufacturing and Investment Zones (NMIZs).

The government is taking several steps to increase the share of the manufacturing sector in the GDP to at least 25 per cent by 2020 from 16 per cent at present. For this, a new National Manufacturing Policy (NMP) was announced recently, which envisages setting up of NMIZs.

They will be mega industrial zones with world-class supporting infrastructure. The government is offering a host of incentives and a liberalised labour and environment norms to promote these zones.

Mr Sharma, who is leading a FICCI business delegation here, said that entrepreneurs of India and Barzil can also come together in other areas of infrastructure like ports, airports and railways.

“India is expected to absorb about $1 trillion investments in the infrastructure sector in the next five years. Brazilian companies should participate in it,” he said.

Besides, industry chambers, the minister met his Brazilian counterpart Mr Fernando Pimentel in Brasilia and discussed ways to increase economic cooperation.

The FICCI President Mr R V Kanoria said education is one of the important sectors for both the countries for increasing engagement.

“Several Indian companies can help in this sector. We have expertise in distant education field. Our present trade is concentrated in oil and its by-products. The potential between the two countries allows us to expand and diversify our trade,” Mr Kanoria added.

At present, few Indian companies like Renuka Sugars are operating in Brazil, while some Brazilian firms are operating in India in sectors such as biofuels.

Brazilian industry also sought investments from India in infrastructure sector in the wake of Olympics game being hosted by Brazil in 2016.

India today sought investments from Brazil, mainly in the infrastructure sector for which it needs USD 1 trillion over the next five years, as the two countries set bilateral trade target of USD 15 billion by 2015.

Commerce and Industry Minister Anand Sharma, on a 4-day visit to Brazil, said businessmen of both the countries can cooperate in sectors like agriculture, textiles, IT, infrastructure and pharmaceuticals.

"Huge opportunities are available in both the countries.Currently the bilateral trade is at USD 10 billion. Both the sides have fixed the target of USD 15 billion by 2015. Trade is increasing but huge potential is there to further boost it," Sharma said here at a function.

He sought investments from Brazil in setting up of the National Manufacturing and Investment Zones (NMIZs).

The government is taking several steps to increase the share of the manufacturing sector in the GDP to at least 25% by 2020 from 16% at present. For this, a new National Manufacturing Policy (NMP) was announced recently, which envisages setting up of NMIZs.

They will be mega industrial zones with world-class supporting infrastructure. The government is offering a host of incentives and a liberalised labour and environment norms to promote these zones.

Sharma, who is leading a FICCI business delegation here, said that entrepreneurs of India and Barzil can also come together in other areas of infrastructure like ports, airports and railways.

"India is expected to absorb about USD 1 trillion investments in the infrastructure sector in the next five years. Brazilian companies should participate in it," he said.

Besides, industry chambers, the minister met his Brazilian counterpart Fernando Pimentel in Brasilia and discussed ways to increase economic cooperation.

FICCI President R V Kanoria said education is one of the important sectors for both the countries for increasing engagement.

"Several Indian companies can help in this sector. We have expertise in distant education field. Our present trade is concentrated in oil and its by-products. The potential between the two countries allows us to expand and diversify our trade," Kanoria added.

At present, few Indian companies like Renuka Sugars are operating in Brazil, while some Brazilian firms are operating in India in sectors such as biofuels.

Brazilian industry also sought investments from India in infrastructure sector in the wake of Olympics game being hosted by Brazil in 2016.

India today said it will take at least two more years for completion of the Doha Round of talks on a global trade deal, as it will take time for things to settle down in the US after elections are held next year.

“The US goes into the election mode (in 2012) and then (we can) look at 2013, as by the time the (US) administration comes into office... thereafter putting people in place and getting negotiations restarted, if by the end of 2013, (we) have a deal, you will be pretty lucky. My guess is you are looking closer to 2014,” commerce secretary Rahul Khullar said at a FICCI function here.

Last week, the World Trade Organization (WTO) ended its crucial biennial Ministerial Conference without making any headway on the way forward for the Doha Round of talks.

The Doha Round, which began in 2001, has missed several deadlines due to the entrenched positions taken by developed and developing nations on issues like tariffs on agricultural goods and free market access.

He said until the developed countries gets out of the global economic crisis, conclusion of the round is not possible. “It was pretty clear from mid-2009 that until the great recession played itself out, there was going to be no appetite in the developed world for taking on any trade agreement... because they are completely overtaken by the domestic fallout of the disaster that are happening to their economics,” he said. Due to falling economic growth and rising unemployment in the developed countries, “Nobody cares what is happening in Geneva or Doha,” he added.

Commerce secretary Rahul Khullar said on Tuesday that it will take at least two more years for completion of the Doha Round. He said consensus on the WTO deal may only be reached by the end of 2013 or early 2014 after the US Presidential elections. “My guess is you are looking closer to 2014 for a consensus,” Khullar said at a FICCI function.

Last week, the WTO ended its crucial biennial ministerial conference without making any headway on the way forward for the Doha Round of talks. The Doha Round, which began in 2001, has missed several deadlines due to the entrenched positions taken by developed and developing nations on issues like tariffs on agricultural goods and free market access.

Khullar added that the economic crisis in the developed countries is contributing to a delay in getting a conclusion.

Stating that he did not see an end to the decade-old Doha Round of negotiations for a global trade deal, Commerce Secretary Rahul Khullar on Tuesday said he did not see the deal materialising before 2014.

Blaming the developed nations for not doing enough for taking forward the concessions package for the least developed countries (LDCs), Mr. Khullar said that he envisaged a long drawn battle of disputes between various countries due to loopholes in WTO rules and warned that India should brace up for contesting these disputes.

Speaking at the function organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on WTO issue, Mr. Khullar said it would take at least two more years for the negotiators to reach a settlement and cited various reasons for his view point.

“The U.S. goes into the election mode in 2012 and then we can look at 2013. By the time the US Administration comes into office and thereafter putting people in place and getting negotiations restarted. If by the end of 2013, we have a deal, you will be pretty damn lucky. My guess is you are looking closer to 2014,” he said.

The World Trade Organisation (WTO) biennial Ministerial Conference ended last week without making any headway forward or direction for the Doha Round of talks.

The Commerce Secretary said until the developed countries got out of the global economic crisis, conclusion of the round was not possible. “It was pretty clear from mid-2009 that until the great recession played itself out, there was going to be no appetite in the developed world for taking on any trade agreement because they are completely overtaken by the domestic fallout of the disaster that are happening to their economics. Due to falling economic growth and rising unemployment in the developed countries, nobody cares what is happening in Geneva or Doha,” he said.

In fact, what has happened during the last few years is that due to the deadlock in the Doha Round, a large number of countries, including India, have preferred to take the free trade agreement (FTA) or bilateral trade agreement route for enhancing economic engagement. “Issues that would come to the forefront in the next 3-5 years include energy and food security as well as labour and environmental standards,” he added.

Referring to the issue of Doha Round having failed to finalise a package for LDCs, Mr. Khullar said the developed world had a lot to answer for that and not the developing nations.

“When in a community of 157 members, you cannot even agree to help those at the bottom, there is something really wrong. We did our bit. But ask yourself how many of you developed countries have done it transparently tariff line by tariff line, apart from empty words,” he said.

The decade-old Doha Round negotiations for greater liberalisation of world trade are likely to be concluded only closer to 2014, the Commerce Secretary, Dr Rahul Khullar, said on Tuesday. He blamed the developed countries for not taking forward the proposal for a package of duty concessions for the benefit of the Least Developed Countries (LDCs).

Speaking at a FICCI function, Dr Khullar predicted that the near future would see new challenges including many trade disputes due to the grey areas in the WTO rules and said India needs to be prepared for such disputes.

As the Doha Round is deadlocked there would soon be a surge in bilateral trade pacts, he said, adding that other issues that would come to the forefront in the next 3 to 5 years include energy and food security as well as labour and environmental standards.

On the reasons for the delay in the completion of Doha Round talks, the Commerce Secretary said, “In 2012, the US goes into the election mode, and then (we can) look at 2013, as by the time the (new US) administration comes into office... thereafter putting people in place and getting negotiations restarted if by the end of 2013 we have a deal you will be pretty damn lucky. My guess is you are looking closer to 2014 (for the conclusion of the Doha Round talks).”

Despite efforts to revive the Doha Round “some countries are blocking, evading and just not willing to engage,” he said.

He added, “It was pretty clear from mid-2009 that until the great recession played itself out, there was going to be no appetite in the developed world for taking on any trade agreement because they are completely overtaken by the domestic fallout of the disaster that is happening to their economies including falling growth rates and rising unemployment.”

The World Trade Organisation’s Ministerial Conference held last week could not break the Doha Round impasse. The Round, which had started in 2001, has already missed many deadlines due to the persisting differences between the developed and developing countries on the extent of liberalisation of world trade.

On the Doha Round failing to come out with a package for LDCs, Dr Khullar said: “the developed world has a lot to answer for that and not the developing nations. When in a comity of 157 members, you cannot even agree to help those at the bottom of the pyramid, there is something really wrong.”

Pointing out that India has already extended a duty free tariff preference scheme for all LDCs, he said, “We did our bit. But ask yourself how many of you (developed countries) have done it transparently tariff line by tariff line, apart from empty words.”

He also said there will soon be huge pressure on the developing nations including India to cut tariffs.

India today said it will take at least two more years for completion of the Doha Round of talks on a global trade deal, as it will take time for things to settle down in the US after elections are held next year.

"The US goes into the election mode (in 2012) and then (we can) look at 2013, as by the time the (US) administration comes into office... Thereafter putting people in place and getting negotiations restarted, if by the end of 2013, (we) have a deal, you will be pretty damn lucky. My guess is you are looking closer to 2014," Commerce Secretary Rahul Khullar said at a FICCI function here.

Last week, the World Trade Organisation (WTO) ended its crucial biennial Ministerial Conference without making any headway on the way forward for the Doha Round of talks.

The Doha Round, which began in 2001, has missed several deadlines due to the entrenched positions taken by developed and developing nations on issues like tariffs on agricultural goods and free market access.

He said until the developed countries gets out of the global economic crisis, conclusion of the round is not possible.

"It was pretty clear from mid-2009 that until the great recession played itself out, there was going to be no appetite in the developed world for taking on any trade agreement... because they are completely overtaken by the domestic fallout of the disaster that are happening to their economics," he said.

Due to falling economic growth and rising unemployment in the developed countries, "Nobody cares what is happening in Geneva or Doha," he added.

WTO summit will see whether decade-long negotiations would go forward or be brought to an end.

Next week’s meeting of trade ministers from all the 157 member-countries of the World Trade Organisation (WTO) is an important one. This year is the tenth anniversary of the Doha Round of global trade talks. And, G-20 leaders have (during the November 3-4 Cannes summit) already hinted the Round should be quashed.

Thus, it remains to be seen whether the December 15-17 ministerial at the WTO headquarters in Geneva would finally sound the end for the Round or whether a map ahead is charted.

Trade experts believe killing the round would be detrimental for countries like India, China and Brazil, which still have some gains to achieve. Quashing the round would also deal a big blow to the least developed countries, which would benefit more from a multilateral trade agreement that would help them export more by gaining access into richer markets.

According to WTO director-general Pascal Lamy, the coming ministerial would act as a platform where every member would pledge achieving “real progress” by 2012. Lamy, during his report on the Doha Round to the WTO’s General Council, said the meet should have delegates ready to show political will in breaking the impasse in talks.

However, the latest G20 summit in France saw leaders clarifying that the current round of global trade talks that started in Doha in 2001 “cannot continue using current methods”, as these had “failed to bring the Doha cycle to a conclusion over the last 10 years”. They are, they said, ready to give it a new approach to strengthen the multilateral trading system and make progress in the areas “of interest to the poorest countries”, according to a communiqué on trade issued at the end of the summit.

The document adds that the G20 would be launching work on new regulations regarding the questions raised by the crisis. Also, these would go beyond what was mandated in the Doha Development Agenda.

Abhijit Das of the Indian Institute of Foreign Trade (IIFT) says only WTO can address and resolve some of the core concerns of emerging economies, including reduction in developed country farm subsidies. “It would be in the interest of the emerging economies to preserve the primacy of WTO,” he said.

Das, who heads the Centre for WTO Studies in the IIFT, says the G20 leaders’ statement should be seen as a strong push to negotiators for being more constructive in concluding the Doha Round.

Officials in the ministry of commerce and industry say the ministerial will see countries trying to work out some sort of a beneficial package for poor countries. In April, the WTO had circulated a set of negotiating texts on all the areas, which was denounced by the developing countries. Hence, the negotiations had been taking place on the basis of the texts circulated in 2008, to US resistance.

The Doha talks, says a senior official from the ministry who is involved in the negotiations, can come to a meaningful conclusion only when countries start scaling back their ambitions and adhere to only what was agreed to in 2001, that had development as the core objective for poorer countries. “For God’s sake, it was a development round — and not where countries would indulge their mercantilist ambitions,” he told Business Standard .

Now, as the US is heading for yet another presidential election, in 2012, Doha will, doubtless, remain on the back-burner for some time.

“Any failure of the multilateral process will not only impact developing countries, but hurt the credibility of an institution, the WTO,” says T S Vishwanath, principal adviser, trade policy, at APJ-SLG Law Offices. Lamy, who had been spearheading the talks as the DG of WTO for the last six years, had been asserting for the last couple of years that 80 per cent of the job is done.

The negotiating process, according to Biswajit Dhar, director-general of RIS, the New Delhi-based think tank, says the Doha talks have became hostage to dominant interest groups in the major economies.

As for the Indian industry, it has taken a wait-and-watch approach. FICCI secretary-general Rajiv Kumar says “The next task will be to draw the work plan for 2012 towards the conclusion of the Doha Round, with a balanced outcome in accordance with its development-led mandate.”

The Round has been the longest of all multilateral trade negotiations. Prior to this, the Uruguay Round went on for eight years under the General Agreement on Tariffs and Trade.

A quick political consensus on the key issues is crucial if the Doha round of the global trade pact for opening up markets in goods and services is to be sealed by the end of 2011, the new deadline set at the recent G20 meet, World Trade Organisation director general Pascal Lamy has said. We need political consensus (on the deal) in the next six months as a lot of technical work needs to be done after that,” Lamy said addressing a FICCI conference on a multilateral approach to today’s challenges .’’

He warned that if the Doha round were to fail, it would weaken the only institution that governs the rules of world trade.

The Doha round of multilateral trade talks that began in November 2001 has missed several deadlines due to differences between developed and developing countries on the extent of market access the latter need to give and protection measures they are to be allowed to shield poor farmers and vulnerable industry.

The prospects of the round have come under a cloud in the backdrop of major countries resorting to protectionism to help domestic industry deal with the economic slowdown.

“It is in these times that proponents of unilateralist, populist policies which discriminate against foreign workers and goods become more vocal,” Mr Lamy said.

But the lessons of history show us that it is coordinated action through international cooperation that maximises benefits for citizens of the world, he said.

On a more optimistic note, Mr Lamy said that the recent G20 and APEC leaders’ summits in Seoul and Yokohama recognised the importance of open trade for global recovery.

They sent strong signals of political resolve to conclude the Doha development round by next year.

“We know that in negotiations all members keep some cards in their pocket. Now we have to see if they agree that time has come to empty their pockets,” he said.

Stressing on the benefits of global trade, Mr Lamy cited a recent joint report prepared by the OECD, the ILO, the World Bank and the WTO that cites cross-country evidence suggesting that a 10% increase in total trade openness is found to reduce unemployment by about 1%.

The Doha round, once concluded, is expected to result in increased trade in goods and services worth $282 billion annually, according to the WTO.

In a strong statement, WTO director general Pascal Lamy on Friday said if the Doha round in the WTO fails, it would be a big blow to the global trade body that oversees multiple trade related matters.. “It (failure of Doha Round) would weaken the only institution which governs the rules of world trade and has the ability to adjudicate in the event of disputes between countries,” Lamy said at a conference on WTO organised by FICCI in New Delhi.

On a more optimistic note however, Lamy added that at the recently-concluded G20 summit in Seoul, world leaders had given “strong signals of political” resolve to break the logjam. “They sent strong signals of political resolve to conclude the Doha Development Round. Leaders recognised the 2011 window of opportunity to achieve this goal,” he said.

Lamy also acknowledged the contribution of Prime Minister Manmohan Singh and commerce minister Anand Sharma for re-invigorating the dialogue process. In September 2009, India hosted a mini-ministerial in the capital to re-start the talks on the resolving the Doha round. “WTO members are now working to translate this political will into the negotiations in Geneva...This process must now intensify in order to “walk the talk.”

Lashing out against protectionist measures, he said that such measures were counter productive to trade and any resolution for the coming out of the slowdown. “Addressing them through trade restricting measures will not work. Worse, it will trigger tit-for-tat protectionism,” Lamy said. He explained that economic crises do create problems at home and give rise to proponents of “unilateralist” and “populist” measures thereby discriminating against foreign workers.

“Some may call us naïve, or even idealists. But the lessons of history are there: they show us that it is coordinated action through international cooperation that maximises benefits for citizens of the world,” he said.

Commerce secretary Rahul Khullar said that over the last few years, there was very little progress at the WTO in terms of a breakthrough. He said that it was "time to call a spade a spade." Lamy also called upon commerce minister Anand Sharma later in the day.

India has formally sought ‘observer status’ in the on-going discussions between a handful of countries such as the US, EU, South Korea and Japan at the World Trade Organisation (WTO) on opening up government supply contracts to foreign suppliers.

This will allow India to closely watch the negotiations without any obligation to open its government purchase of goods and services to foreign suppliers, helping it gain firsthand knowledge of the procurement practices of other countries.

This will help Indian officials bargain better in its on-going bilateral trade negotiations with countries such as Japan and EU. Countries including Japan, US and the UK are keen to see India open up government procurement worth $80 billion every year and are putting pressure to include it in the agenda of bilateral trade agreements being negotiated with India.

India does not want to take any immediate steps for opening up the sector, but only understand how the process works, a government official, who did not wish to be named, told ET.

“A formal request for gaining observer status in the plurilateral negotiations on the government procurement agreement (GPA) has been placed by India to the WTO committee on government procurement which will be considered in its next meeting,” the official said. Joining the GPA negotiations as an ‘observer’ is a smart strategy to better understand the procurement practices of GPA member countries, believes Manab Majumdar, assistant secretary general, FICCI.

Worldwide public procurement market of goods and services is estimated between $1.5 and $1.8 trillion. “Being an observer does not imply that we are or shall be party to the agreement per se, and have to undertake the obligation of opening up our government contracts to foreign firms,” Majumdar added.

The GPA negotiations at the WTO involves only 14 countries at the moment. Once an agreement is reached between them, the liberalised government procurement regime will be applicable only between the participating members. This is an exception, as the rest of the negotiations at the WTO in the areas of goods and services is taking place on a multilateral basis which means that the opening up of markets by a particular country would be for all WTO member countries.

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