India, China to take on West at WTO

The WTO talks — aimed to boost world trade and reduce poverty — are currently facing an impasse over developed countries’ stand to give high subsidies to their farmers and over lack of market access for Western companies in the poor countries.

The impasse must be broken as there is lot at stake for developing nations like India and China,” Nath said. In the WTO talks, it is countries like India and Brazil which have led the developing nations in various groupings so that their interests are protected. China, on the other hand, has been a silent spectator . The WTO is a forum where 150-member countries are negotiating how to bring down trade barriers and boost their economies.

The current ‘development round’ of talks are meant to help poor countries but both European and Americans have refused to bring down subsidies as high as $2 billion a day to their own farmers.

“We’ve decided to strengthen coordination so that our rights are protected,” Xilai told The Indian Express soon after Chinese President Hu Jintao said India and China should jointly uphold the legitimate rights and interests of developing countries in WTO talks.

By taking a joint stand, both India and China stand to benefit as it would be difficult for rich nations to negotiate with two of world’s biggest economies. Over a third of the world’s population lives in India and China, making these two countries the world’s biggest consumer markets.

China, which joined WTO in 2001, has gained immensely by globally integrating its economy. Its exports and imports have now crossed $1.42 trillion a year.

India and China have said the outcome of the talks must expand trade opportunities for all, must achieve development and safeguard livelihood. Both countries, Nath, are also looking at the option of free trade agreement, depending on a feasibility study.