CUTS-CITEE

The eradication of poverty is a shared responsibility of the international community. In spite of rapid economic growth in many parts of the world, half of the world’s population is poor. Therefore, a new global strategy clearly needs to be initiated with more resources, a sharper focus and a stronger commitment. The international community has to undertake the task of reforming the global environment for accelerating poverty reduction. Developing countries, weighed down by external debt, starved of capital and technology, blocked from rich-country markets and faced with declining official development assistance, cannot be expected to go into battle without reinforcements (UNDP Poverty Report 2000).

There are several ways in tackling poverty. Trade expansion is one among them. Trade can affect income opportunities of the poor in a number of ways. It results in higher economic growth, which may not be sufficient for poverty eradication but definitely an essential one. It allows people to use their productive potential, assists in economic growth, curtails arbitrary policy interventions and helps to insulate against shocks.

With the setting up of the World Trade Organisation (WTO) in 1995, it was hoped that international trade would become more free and fair. Further, developing countries would get the opportunities to reverse the long continuing adverse terms of trade for their exports. But the WTO in its brief span of operation has not been able to provide a freer and fairer trade regime to the satisfaction of all. The developing country members are still unable to access, the way they expected the markets of developed countries as they are faced with not only tricky tariff structures but also a variety of non-tariff barriers.

The developing country members have been insisting for the re-examination of implementation problems associated with the existing agreements before enlarging the ambit of the WTO. The very purpose of a development round should be to correct the imbalance in the existing agreements and also make efforts to provide a helping hand to the poor countries. Poverty reduction is the main aspect of economic development through trade route. Better market access should be the core of this development strategy.

The Doha (Qatar) ministerial conference will provide the poor countries with considerable challenges but also significant opportunities. In the end, the issue of market access and capacity building are two important goals for the developing countries. The onus lies on the developed countries to make them partners in development through trade and fully integrating them into the global economy on equal terms.

Editor

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DEBATE

On India’s Stand at Doha

India today, with one-sixth of humanity, accounts for less than one percent of world trade. Should India not passionately embrace the free trading regime being ushered in by the World Trade Organisation, or should India continue to oppose a new round?

Biswajit Dhar, Senior Fellow, Research and Information System for Non-alligned and Other Developing Countries, New Delhi, Veena Jha, Consultant, United Nations Development Programme, New Delhi and Pradeep S. Mehta, Secretary General, Consumer Unity & Trust Society, Jaipur debated on the following issues:

1. Should India re-think its present position at the WTO?

2. How important are implementation issues?

3. Does India stand to lose out on the chance to influence proceedings if she sticks to her present stance?

The debate appeared The Economic Times, New Delhi on 11^th September 2001. For details, please see www.cuts-international.org/article-debate.htm

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ANALYSIS

Country Positions on WTO Issues

Unlike the third ministerial conference of the WTO held at Seattle in November 1999, where trade ministers of the member countries failed to agree on the agenda, this time member countries are making efforts not to push for issues which might jeopardise the success of the fourth ministerial conference to be held in Doha, Qatar in November 2001.

At Seattle the trading giants such as the EU and the US not only disagreed on many issues, but also there were fundamental difference between the rich and poor countries on putting the vexed issues of linkages between trade and labour standards into the WTO acquis. Furthermore, rich countries wanted to launch a new round of negotiations at Seattle, whereas the poor proposed to take up the implementation issues arising from the Uruguay Round agreements before negotiating on fresh areas for liberalisation.

Two years down the line, the WTO members agreed to sit together in a ministerial meeting, but yet to decide on the final agenda. Apart from items in the built-in-agenda, there have been suggestions for incorporating various new issues. Unlike the Seattle ministerial where the linkages were the focal point of debate, one moot issue for the Doha meeting seems to be whether or not to launch a new round of trade negotiations with new issues as proposed by many countries, which include investment, competition policy and transparency in government procurement.

It is also important to note the changes taking place in country positions vis-à-vis various issues. An analysis of country positions has been made, which shows some interesting patterns. Details are available at www.cuts-international.org/cuts-advocacy-countryposition-latest.htm

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EVENT REPORTS

Globalisation: Where do we stand?

On 27^th June 2001, CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE) organised a panel discussion at New Delhi by involving well-known protagonists and antagonists on issues of globalisation. The panel comprised of trade union leaders, academics, media personalities and decision-makers. Some well-known critics of globalisation had agreed to come, but they did not show up. The purpose of the meeting was to discuss myths and realities, which are floating around the issues relating to globalisation.

Muni Lall, the Minister of State for Labour and Employment, India, in his inaugural speech, said that the ongoing economic reform process in the country is irreversible. He iterated that the Government would continue to support it to ensure that the benefits of globalisation reach to the poorest of the poor. According to him, the Government is doing its best to support domestic industry to become globally competitive. “But it should be clearly understood that we can no longer afford to give undue protection to inefficient and mismanaged enterprises,” said the Minister.

Other prominent panellists were Sharad Joshi, Chairman, Task force on Agriculture, Government of India, Suman Bery, Director General, National Council of Applied Economic Research (NCAER), New Delhi and Jagdish Shettigar, Member, Prime Minster’s Economic Advisory Council. For details, please see www.cuts-international.org/psm-member.htm

Cabinet Nod on New Competition Bill in India Welcomed

Though the clearance of the new Competition Policy Bill of India by the Union Cabinet is a welcome step, much work has to be done to inform the public and lawmakers on the issue for a healthy debate as well as further improvements. That was the central message, which emerged at a Symposium titled “Existing & Proposed Competition Law of India,” organised on 27^th June, 2001. The event was held at New Delhi and in association with the National Council of Applied Economic Research.

It was felt that at the conceptual level presently there is no standardised relationship between competition policy, competition law and competition authority in India. “The Monopolies and Restrictive Trade Practices (MRTP) Act, the predecessor, was not at all dealing with competition issues since 1991,” commented Naresh Mathur, a Supreme Court lawyer. To call it a competition authority, would be a misnomer, he added. While rejecting the existing regime in the liberalising and globalising economy, several lacunae were pointed out in the draft Bill that was made public a few months ago.

The Symposium was a part of a project on comparative study of competition regimes of India, Pakistan, Sri Lanka, Kenya, Tanzania, South Africa and Zambia, being supported by the Department for International Development, UK and implemented by CUTS-CITEE. Please see www.cuts-international.org/psm-member.htm#Cabinet Nod on Competition Bill Welcomed for further details.

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PUBLICATIONS

REPORT

State of the Indian Consumer – Analyses of the United Nations Guidelines on Consumer Protection, 1985 in India

In the year 1985, the United Nations adopted a set of Guidelines for Consumer Protection, which was revised in 1999. The Guidelines addresses the interests and needs of consumers and provide a framework for the governments, particularly those of developing and newly independent countries, to use for elaborating and strengthening consumer protection policies and legislation. The Guidelines has outlined eight areas for developing policies for consumer protection.

The report highlights the present status with respect to eight consumer rights, as envisioned in the UN Guidelines, in the Indian context. The stocktaking exercise also helps in the preparation of a draft National Consumer Policy and suggests measures to be taken for the implementation of the same. The report will also help other countries, particularly the developing ones, in protecting and promoting consumer rights. ( ISBN: 81-87222-21-2; Rs.200/ US$25)

BRIEFING PAPER

US Politics and Free Trade: Trade Policy Options for Africa

The paper explores policy and political contexts for African nations to consider as they contemplate the significance of the announcement of the first high level US-Africa AGOA Ministerial in October 2001.

The AGOA (African Growth and Opportunity Act) is a framework for shaping future US-Africa economic relations and the paper examines the relationship between the domestic US politics and the US trade policy that African policy makers must contend with. (CUTS-ARC Policy Briefs, No.1/2001)

DISCUSSION PAPER

Domestically Prohibited Goods, Trade in Toxic Waste and Technology Transfer: Issues and Developments

The study highlights concerns about the industrialised countries exporting domestically prohibited goods (DPGs), toxic wastes and dirty technologies to the developing countries that are not capable of disposing off these substances safely and protecting their people from health and environmental hazards.

Policies of the industrialised world and of transnational corporations are analysed by looking into the progress on the implementation of the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal, among others. A number of recommendations are provided. (ISBN: 81-87222-40-9; Rs.200/US$25)

MONOGRAPH

Globalisation and India – Myths and Realities

The process of globalisation is popularly described as a gradual removal of barriers to trade and investment between nations. It aims to achieve economic efficiency through competitiveness.

Globalisation is not a new phenomenon since the process has been happening for ages. The issue has to be studied in the context of its time and impact. Perhaps, it is impossible to label globalisation as either good or bad, since there is no easy readymade answer.

This monograph is an attempt to examine the myths and realities so as to address some common fallacies of globalisation and raise people’ awareness on the potential benefits globalisation has to offer. (ISBN: 81-87222-44-1; Rs.30/US$5)

NEWSLETTERS

Economiquity

A quarterly newsletter of the CUTS Centre for International Trade, Economics & Environment, covering issues of economic policy, trade and development, environment and economics, trade and intellectual proterty rights etc.

To know more on trade disputes, linkages between trade and non-trade concerns and a gamut of relevant news items, please subscribe. (Rs.50/US$15 per annum)

ReguLetter

A quarterly newsletter of CUTS-CITEE covering developments relating to competition policy and economic regulations around the world.

Its main purpose is to provide a media, in particular to the civil society, to understand the issues clearly and promote a healthy competition culture in the world. (Rs.50/US$15 per annum)

For order and subscription, please write to cuts@cuts.org

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EVENT ANNOUNCEMENTS

Linkages: How do we bridge the gap?

London, 10 October 2001 and Washington, 19 October 2001

CUTS-CITEE is organsing two meetings on linkages. The first one, to be held in London on 10^th October 2001, will be organised in association with the London School of Economics & Political Science. The second one, to be held in Washington DC on 19^th October 2001, will be organised in association with the Brookings Institution. The audience will consist of representatives from governments, industry, NGOs and academia, from developing and industrialised countries.

The purpose of the meetings is to conduct dialogue for a new approach on the new trade arena (environment and labour standards) on the eve of the 4^th WTO ministerial conference to be held in Doha, Qatar in November 2001. For details, please visit http://cuts-international.org/forthcoming-events.htm

Competition Policy and Consumer Interest in the Global Economy

Geneva, 12-13 October 2001

As governments open up domestic economies to private sector participation and foreign trade, competition law and policy are increasingly regarded as necessary to reap the maximum benefits in the global economy. At the same time, there is by no means consensus on the beneficial effects of competition law, and a multilateral agreement is opposed by many developing countries.

The objectives of the Symposium are to:

1. Bring together policy makers, practitioners and civil society representatives reflecting a range of opinions to encourage discussion and debate;

2. Inform the debate through the use of case studies; and

3. Identify and assess the arguments put forward on each side and prepare an advocacy document for wider distribution based on this.

For details, please visit http://cuts-international.org/forthcoming-events.htm

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