About CUTS-CITEE
Established in 1983, Consumer Unity & Trust Society (CUTS) has been involved in several areas of public interest, working simultaneously at the grassroots, national, regional and international levels, with the mission Consumer sovereignty in the framework of social justice and equality, within and across borders.
In 1991, CUTS ventured into the area of trade and development due to a lack of capacity among consumer groups in the South. There were two main reasons for CUTS to engage in international work on international trade and development issues. First, the demand emanating from various constituencies in the developing world to analyse, inform and educate them, and often advocate on their behalf. Secondly, the understanding within the organisation, that in an increasingly globalising world, as many of the problems have their source at the international level, the solutions too would lie there, or at least a better understanding will help resolve problems locally.
With this as backdrop, the CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE) was established in 1996, to carry out high level political economic analyses on trade and development issues, advocate at the appropriate fora and strengthen capacities of the civil society in developing countries.
Since its inception, the work programme of CUTS-CITEE has three distinct and interwoven strands:
- Creating and building long-term capacity to address issues of and the complex linkages between trade, investment, environment and development from a Southern perspective through policy research, advocacy, networking, cooperation, and information dissemination and outreach.
- Analysing actions of international/inter-governmental institutions and national governments in this arena so as to enhance their responsiveness and acountability to the people and civil society at large.
- Providing the upward and downward linkages with grassroots organisations to convey their views and concerns to policy makers at national and international levels, and vice versa.
Background
Given the above-stated strands, the Centre has been conducting research, dialogues, advocacy, networking, information dissemination and outreach etc.
During 1996-97, the Centre had organised four policy dialogues in India to discuss the emerging issues before the World Trade Organisation (WTO). Two of these were organised just before the first WTO Ministerial Conference at Singapore, December 1996 and one policy dialogue following this meeting. Recommendations for organising these dialogues emerged from a Roundtable Conference, held in Nagarkot, Nepal in May 1996.
In all, there were 87 participants in these dialogues, out of which 36 were civil society representatives. People from the government, media, business organisations and research institutions also participated in these dialogues.
The objective was: “To develop a better understanding on the existing and emerging issues at the World Trade Organisation, their impact on India and evolve a consensus on India’s approach through a structured dialogue among policy makers, civil society representatives, experts and mediapersons.” The aim was to enable India to adopt a proactive stand at the international trade fora in the future, and also address the crucial need for strengthening of domestic policy to meet the challenges of globalisation and liberalisation.
The outcome of the policy dialogues was a set of recommendations on general and specific issues, i.e. action points for advocacy. In all there were 42 recommendations, which were classified into the following sections:
- General issues
- Market access and trade liberalisation
- TRIPs, biological diversity and biotechnology
- Trade, investment and competition
- Trade and Environment
- Trade and labour standards.
In December 1997, the document, ‘Agenda for India at the WTO – Need to be Proactive,’ taking into account the above-mentioned recommendations, was prepared and distributed as widely as possible. Since then the Centre has been doing advocacy with policy makers, trade experts, business organisations and mediapersons to take on board appropriate strategies to make those recommendations into realities.
More than three years have passed and now its time to revisit those recommendations, in order to get an idea of the Centre’s advocacy efforts. The following sections analyse the recommendations, the action points, outcome and leftover, and have also been graded as follows: A+ Highly successful
A Successful
A- Moderately successful
B+ Above average
B Average
B- Below average
This exercise found that out of 42 recommendations, 13 cases we were considered ‘highly successful’ while 12 cases were ‘successful’. In four cases, we were ‘moderately successful. In six cases, the success was either ‘above average’ or ‘average’. In only one case, the success was ‘below average’.
Recommendations |
Action Point/Target |
Outcome |
What is yet to be Done? |
Grade |
India has to evolve a proactive agenda with political economic arguments on existing issues at the WTO |
Evolve specifically designed strategy by involving all concerned actors through a series of dialogue Ministry of Commerce |
Several stakeholder meetings have been conducted |
More dialogues are to be organised to evolve a proactive agenda |
A– |
A National Trade Policy Council should be established. Working/Expert Groups on issues should be set up, which may co-opt experts in the field. |
Establish a National Trade Policy Council Ministry of Commerce |
National Advisory Committee on International Trade has been formed and meetings were regularly conducted Specific Working Groups have also been formed and meetings held |
To involve other ministries in this Committee |
A+ |
Impress upon the polity the need to implement our commitments under the WTO while fully utilising the flexibilities provided in the Agreements to safeguard and promote India’s interests |
Build positive public opinion with well-argued position papers, seminars and strategically placed articles in leading English and local language newspapers Business chambers, NGOs |
Politicians have been informed through · regular debates conducted by business chambers, NGOs and the government · seminars, and · articles |
Convince politicians to take interest and approach trade issues in pro-active manner |
A |
Take stock of existing issues at the WTO and what needs to be done |
Take structural initiative by involving various ministries, business and NGOs Ministry of Commerce |
Various initiatives have been taken by involving all actors |
More interactive efforts are needed |
A |
Conduct research on the impact of existing and emerging issues at the WTO to enhance India’s preparedness |
Prepare research papers on specific issues and maintain contact points in concerned ministries Ministry of Commerce, research institutes, NGOs |
Research papers were prepared, distributed and dialogues were organised regularly |
Follow-up research and structured advocacy are to be conducted regularly |
A+ |
Clarity in defining India’s strategic economic interests and better articulation of long-term goals |
Develop a Vision 2020 document and conduct debates through a structured interactive strategy Ministry of Commerce |
Vision 2020 has been prepared |
To evolve a structured interactive strategy |
B+ |
Better coordination of different ministries on inter-linked issues |
Establish an Inter-ministerial Committee of Secretaries Ministry of Commerce |
Inter-ministerial Committee of Secretaries has been formed and meetings were regularly conducted |
To generate required interest in other ministries on trade issues |
A+ |
Use bargaining chips in the international political arena and build sector-specific alliances |
Identify specific areas for bargaining for better terms under the existing WTO acquis Ministry of Commerce |
Specific areas and bargaining chips have been identified |
More efforts are needed in taking them forward |
B |
Involve United Nations Conference on Trade and Development in policy formulation at the WTO |
Take lead on the issue of strengthening UNCTAD in a proactive manner Ministry of Commerce, Ministry of Foreign Affairs |
Taken various steps, including conducting issue-specific seminars to strengthen UNCTAD’s role in trade policy matter |
More issue-specific seminars need to be conducted and results to be taken forward |
A– |
Help least developed countries with better market access for their products |
Provide zero tariff concessions to LDCs Ministry of Commerce |
Efforts are going on this regard, particularly for South Asian countries |
Concessions are to be extended to African LDCs and results to be monitored |
A |
Help business to understand WTO issues better |
Prepare WTO guides for business Research institute, NGOs |
Several guides have been prepared (CII-Business Guide on WTO, CUTS-LSE Training of Business Leaders, WTO Audit of Indian Industries) and distributed widely |
Need to reach out to the business community at large and at various levels, especially small and medium enterprises |
A+ |
Concerted efforts to build capacities of business chambers, academia, NGOs and mediapersons |
Discuss the issue in the policy making bodies of the Government Ministry of Commerce |
Capacity building efforts are on and in a coordinated manner |
Much more interaction among different actors are needed |
A |
Train mediapersons on trade issues for unbiased and well-informed knowledge |
Expose and conduct media workshops, including inviting them in seminars etc Research institutes, NGOs, business chambers, Ministry of Commerce |
Mediapersons have been trained on trade policy issues by CUTS, government and others on a regular basis, which is visible in national newspapers |
Provide more exposure to Indian language journalists so that they write in an objective manner |
A |
Operationalise specific recommendations |
Prepare a detailed action plan for circulation to all actors Ministry of Commerce |
Plan of action has been prepared and discussed widely |
Need to implement the plan of action and monitor it regularly so that necessary revision can be done at appropriate time |
A |
Enhance the national economic research budget with contribution from government and business |
Address the Planning Commission and business chambers on creating higher outlays for research Ministry of Commerce, NGOs |
Planning Commission has created a corpus fund of Rs.100 crore (US$ 22 million) for conducting research |
More in-depth, field-based research needs to be conducted |
A+ |
MARKET ACCESS AND TRADE LIBERALISATION
Recommendations |
Action Point/Target |
Outcome |
What is yet to be Done? |
Grade |
Pressurise industrialised countries to initiate structural adjustments, particularly in textiles and agriculture, to open up markets as mandated by the WTO |
Conduct political analyses through structured consultations with all actors and adopt appropriate advocacy strategies Ministry of Commerce |
Political analyses have been done |
Advocacy needs to be more focussed |
A |
Replace anti-dumping measures from the provisions of WTO by appropriate competition legislation |
Take appropriate steps on the issue and exploit the divisions in the industrialised countries Ministry of Commerce |
Steps have been identified |
Advocacy strategy to be evolved for seeking allies at the different levels |
A |
Seek further liberalisation of agricultural trade |
Take appropriate steps in consultation with the Cairns Group of Countries Ministry of Commerce |
Consultation is going including the use of bargaining chips to get better market access |
More focussed approach is needed |
A+ |
Study the effects of tariff escalation on development and environment |
Use the study as a basis for taking market access initiatives in the future negotiations at the WTO Research institutes, NGOs, Ministry of Commerce |
Studies have been done and used by the Government of India to advocate at the WTO for the rectification of tariff structures for different commodity groups |
Results of the studies need to taken forward at appropriate levels |
A+ |
Maintain a constant vigil on the emerging non-tariff barriers and strategise for the future |
Identify and analyse major trade barriers hindering market access and trade liberalisation Ministry of Commerce, Business, Research institutes, NGOs |
Studies on non-tariff barriers affecting India’s exports have been and are being conducted by CUTS and other agencies and appropriate strategies are taken |
Strategies are to be implemented at the political level by seeking allies |
A+ |
TRIPs, BIOLOGICAL DIVERSITY AND BIOTECHNOLOGY
Recommendations |
Action Point/Target |
Outcome |
What is yet to be Done? |
Grade |
WTO-compatible amendments to the Patent Act with appropriate safeguards |
Organise debates on the issue before amending the Patent Act Ministry of Commerce |
Public debates have been organised before placing the amended Patent Bill before the Parliament |
Awareness generation at various levels on intellectual property rights and their implications for the economy |
A+ |
Enact a sui generis legislation to protect plant varieties |
Coordinate the formulation of such a legislation Ministry of Commerce, Ministry of Agriculture, NGOs, Research institutes |
The formulation of such a bill is under progress as public debates continues |
Advocacy for taking into account public interest issues while preparing the bill |
B |
Strengthen competition legislation to cope with monopolistic situation arising out of patent exploitation |
Take appropriate actions at various levels Ministry of Finance (Department of Company Affairs) |
A new Competition Bill has been prepared, which has not taken into account the concerns raised |
Need to sensitise and educate policy makers on linkages between IPRs and competition |
B |
Need for a public debate on the definition of micro-organisms |
Organise the debate and study the linkages between the Convention on Biological Diversity and TRIPs Research institute, NGOs, Ministry of Science and Technology (Department of Biotechnology) |
Public debates are in the process |
Focussed studies need to be completed and taken forward at the appropriate levels |
B+ |
Simplify and strengthen the national patents system |
Analyse the drawbacks and take appropriate actions Ministry of Industry |
Drawbacks have been analysed and the amended law has taken them into account |
Monitor the implementation of the new law |
B+ |
Greater public vigilance on patent applications |
Develop appropriate mechanisms while involving NGOs in the process Ministry of Industry, NGOs |
Mechanisms have been developed |
Ensure NGO involvement in the process |
B+ |
Prepare well-argued position papers for the review of TRIPs |
Commission such papers for advancing the issues Ministry of Commerce, Research institutes, NGOs |
Position papers have been prepared |
Concerted efforts are needed to take the arguments forward |
B+ |
Analyse and assess domestic legislation which have an impact upon biological diversity |
Draw up a strategy for analyses and public debates Research institutes, NGOs |
Strategic analysis has been made, and public debates have been organised |
A need for a more focussed effort |
A |
TRADE, INVESTMENT AND COMPETITION
Recommendations |
Action Point/Target |
Outcome |
What is yet to be Done? |
Grade |
Discuss implications of international investment agreements |
Conduct in-depth research Ministry of Commerce, research institutes, NGOs |
Some research has been conducted and the results were discussed |
In-depth research and advocacy are required |
A |
Strengthen domestic policies and legislation governing investment, competition and consumer welfare |
Amend/enact legislation and organise public debates Ministry of Commerce |
Enactment of the new competition legislation is on the cards and consumer protection legislation is being amended |
More efforts are needed to take into account investment and consumer welfare issues |
B |
Explore the development of international competition policy to safeguard the interests of developing countries |
Needs to initiate and support discussions on this issue at the WTO Working Group on Trade and Competition Policy Ministry of Commerce |
Taking part in the discussions at the WTO Working Group |
Need to be pro-active in raising development dimensions vis-à-vis competition and highlight developing countries’ concerns |
A– |
Revive the discussions on the UN Code of Conduct on Transnational Corporations |
Demand revival of the discussions and seek allies in other developing countries |
Not much efforts have been made |
Advocate at the appropriate level to revive the Code |
B– |
Explore intra-OECD positions on multilateral agreement on investment and discuss them tactically with the OECD members |
Alert Indian missions to meet the appropriate persons in the Economic Ministries of OECD Governments to gain a better understanding Ministry of Commerce |
Multilateral Agreement on Investment (MAI) at the OECD level was aborted |
Issue is not yet dead and diluted version is coming up at the WTO, thus preparation is necessary |
A+ |
Prepare an alternative vision of a MAI and gain support through advocacy |
Commission research on the issue and organise public debates Ministry of Commerce, research institutes, NGOs |
Prepared and distributed materials while organising a series of public debates globally |
Generate awareness about the alternate version of MAI while continuing advocacy |
A+ |
TRADE AND ENVIRONMENT
Recommendations |
Action Point/Target |
Outcome |
What is yet to be Done? |
Grade |
Hold consultations with stakeholders to take stock and evolve an appropriate response |
Take positive steps and organise regular meetings to design an appropriate action plan Ministry of Commerce, Ministry of Environment & Forests |
Consultations have been held, and an action plan has been designed |
Advance the action plan at the political level while seeking allies |
A+ |
Garner support for excluding globally beneficial, environment-friendly technologies from intellectual property rights |
Analyse the issues in a coordinated manner, identify allies and design appropriate advocacy strategies Ministry Environment & Forests, NGOs |
Some analysis have been done |
Analysis needs to be done for designing and implementing advocacy strategy |
B |
Adopt national environmental standards to minimise adverse effects of environment-related trade measures |
Ensure proper participation in the standards setting process Ministry of Environment & Forests |
Participation of consumer organisations in the standard setting process has been ensured |
Concerted efforts are needed to make national standards compatible with the international standards |
A– |
Advocate for the adoption of unambiguous rules and notifications relating to trade in domestically prohibited goods |
Conduct research and outreach on the issue and seek allies at the international level Ministry of Commerce, NGOs |
Research is going on |
Appropriate advocacy strategy is to be designed for political push while also seeking allies |
B |
Recommendations |
Action Point/Target |
Outcome |
What is yet to be Done? |
Grade |
Guard against linkage between trade and labour standards |
Assert that labour standards should not be linked with trade Ministry of Commerce, NGOs |
Vocal against linking labour standards with international trade and clearly articulated India’s position |
Continue dialogues and advocacy on issues of linkage between trade and labour standards and find out a globally acceptable solution |
A+ |
Take steps to effectively implement labour welfare legislation |
Make holistic efforts to improve labour welfare in the country Ministry of Labour |
Labour Commission has recommended appropriate steps that the Government has accepted |
More reforms are required, thus advocacy efforts should continue |
A |
Prepare for multilateral initiatives in case social clause is discussed at the WTO |
Conduct research and identify appropriate advocacy options Ministry of Commerce, NGOs, business chambers |
Several research projects have been conducted and advocacy is in process |
Discuss various options at the national level, by involving all relevant stakeholders, including NGOs |
A |
Prepare appropriate communication strategies to place the counterfactuals in the right context |
Analyse and collate the counterfactuals and design communications strategies Ministry of Commerce, Ministry of Labour, NGOs, business chambers |
Counterfactuals are being prepared |
Need to develop a strategy to improve communication with governments, trade unions, NGOs, academics, and media persons |
B+ |
Contact CITEE
CUTS Centre For International Trade, Economics & Environment (CITEE) D–217, Bhaskar Marg, Bani Park,
Jaipur 302 016, India,
Ph: +91(0)141-22207 482
Fax: 91.141.2282485
Email: cuts@sancharnet.in,citee@cuts.org