Kamal Nath calls for just outcome of WTO

London, May 4: Championing the agenda of UPA government for an inclusive development, Commerce and Industry Minister Kamal Nath has called for a more balanced, just and development-oriented outcome of the World Trade Organisation (WTO) which redresses structural flaws in global trade instead of perpetuating them.

Reiterating that India's commitment to both inclusive growth and liberalisation remains undiminished, the Minister, in his address at the Oxford University yesterday, said '' there is no dichotomy between these,'' adding the challange of governance lies in reconciling them.

Describing a world that consumes 20 times more oil, 50 times more energy and a 100 times more electricity than the developing countries as the '' virtual world '', Mr Nath said the challenge before WTO negotiators was how and when the virtual world would converge with the real world whose realities do not filter through many screens of the virtual world comprising of laptop, television and mobile phone.

Calling for redressal of flaws and inequities in the current global trading system, he said India's position in the WTO negotiations should be seen in the perspective of its multi-dimensional realities. He said just because Indian industry has started acquiring foreign companies does not mean the country has achieved first world status.'' Sixty per cent of India's people are still dependent upon agriculture for their livelihoods. Indian agriculture is characterised by small holdings of less than five acres. Ninty per cent of landowners are also tiller,'' he said.

The Minister said '' Indian agriculture is predominantly subsistence agriculture, not corporate-for-profit agriculture.'' Yet, he said, '' Indian farmer is willing to compete with the American farmer. But he can not compete with the U S Treasury.'' Mr Nath said '' We can not allow what has happened to West Africa, to happen to our farmers,'' adding whole populations of some nations in West Africa have been reduced to abject poverty through '' unfair trade.''

On a world without tariffs, the Minister said tariffs are legitimate economic instruments, whereas subsidies are not and asked ''how fair is it to 'trade-off' legitimate instruments against illegitimate ones ?'' He said '' we must not lose sight of the fact that unrestrained tariff liberalisation can have disasterous effects on a country's industrial economy.'' Describing the Doha round of WTO negotiations as Development Round, Mr Nath said delivery on development should be based on fairness and equity and justice, adding healthy economics itself demands it.

UNI