|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1125.46 |
RMB/Ton |
-0.28% |
8/4/2015 |
|
VSF |
2125.51 |
RMB/Ton |
0% |
8/4/2015 |
|
ASF |
2471.99 |
RMB/Ton |
0% |
8/4/2015 |
|
Polyester POY |
1077.23 |
RMB/Ton |
-0.74% |
8/4/2015 |
|
Nylon FDY |
2813.65 |
RMB/Ton |
0% |
8/4/2015 |
|
40D Spandex |
5948.86 |
RMB/Ton |
0% |
8/4/2015 |
|
Nylon DTY |
5940.82 |
RMB/Ton |
0% |
8/4/2015 |
|
Viscose Long Filament |
1358.59 |
RMB/Ton |
-0.59% |
8/4/2015 |
|
Polyester DTY |
2620.71 |
RMB/Ton |
0% |
8/4/2015 |
|
Nylon POY |
2664.93 |
RMB/Ton |
0% |
8/4/2015 |
|
Acrylic Top 3D |
1302.32 |
RMB/Ton |
-1.22% |
8/4/2015 |
|
Polyester FDY |
3022.66 |
RMB/Ton |
-1.05% |
8/4/2015 |
|
30S Spun Rayon Yarn |
2717.18 |
RMB/Ton |
0% |
8/4/2015 |
|
32S Polyester Yarn |
1800.74 |
RMB/Ton |
0% |
8/4/2015 |
|
45S T/C Yarn |
2877.96 |
RMB/Ton |
0% |
8/4/2015 |
|
45S Polyester Yarn |
2861.88 |
RMB/Ton |
0% |
8/4/2015 |
|
T/C Yarn 65/35 32S |
2620.71 |
RMB/Ton |
0% |
8/4/2015 |
|
40S Rayon Yarn |
1977.59 |
RMB/Ton |
0% |
8/4/2015 |
|
T/R Yarn 65/35 32S |
2427.78 |
RMB/Ton |
0% |
8/4/2015 |
|
10S Denim Fabric |
1.13 |
RMB/Meter |
0% |
8/4/2015 |
|
32S Twill Fabric |
0.95 |
RMB/Meter |
0% |
8/4/2015 |
|
40S Combed Poplin |
1.05 |
RMB/Meter |
0% |
8/4/2015 |
|
30S Rayon Fabric |
0.76 |
RMB/Meter |
0% |
8/4/2015 |
|
45S T/C Fabric |
0.77 |
RMB/Meter |
0% |
8/4/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16078 USD dtd. 4/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
After an 18-month prolonged wait, the US government on Tuesday finally extended the generalised system of preferences (GSP) for Indian exporters retrospectively from August 2013, enabling duty-free entry of 3,500 product lines. The move is expected to benefit exporters of textiles, engineering, gems and jewellery, and chemical products, among others, as their biggest market is the US. The USGSP, which expired in July 2013, has been extended with retrospective effect from August 2013 till December 2017. In the GSP a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to American markets. This is given in the form of reduced or zero rates of customs duties. It was introduced by the US in 1976. During the United Progressive Alliance regime, then Commerce Minister Anand Sharma had taken up the matter strongly. This was the longest delay by the US in renewing the GSP.
DUTY-FREE ENTRY
The move is expected to increase the quantum of exports into the US markets. Exporters are also hopeful that with an increased demand in those markers, exporters can enjoy double benefits. "This is going to boost exports to the US markets. Demand is going up there and exporters will benefit from such a move. This has been one of our long-pending demands. We can expect merchandise exports to see a turnaround as our competitiveness will now increase," said Ajay Sahai, chief executive officer, Federation of Indian Export Organisations.
SOURCE: The Business Standard
Expressing disappointment over RBI keeping its policy rate unchanged, the Tirupur Exporters Association (TEA) today requested the government to announce a three per cent interest subvention scheme for garment sector. "At this juncture, we strongly request the central government to announce three per cent interest subvention scheme on rupee packing credit to employment-intensive garment sector immediately with retrospective effect from April 1, 2015, for growth of exports," TEA president A Shaktivel said in a statement here. Reserve Bank Governor Raghuram Rajan said that the headline inflation is at an elevated level and banks are yet to pass on full benefits of previous rate cuts. "We were expecting some reduction in repo rate in the third bi-monthly monetary policy of 2015-16, but unfortunately it has not happened," he said. Rajan kept the repo rate, at which RBI lends to banks, unchanged at 7.25 per cent and the cash reserve ratio, the proportion of deposits banks have to park with the central bank, at 4 per cent.
SOURCE: The Economic Times
The State government proposes to establish a high-tech Textile Training Centre in the Kalaburagi district of Karnataka, Minister for Textiles, Ports and district in-charge Baburao Chinchansur has said. He was talking to presspersons after visiting Bandalli village in Yadgir district on Tuesday, where the proposed training centre would be come up at a cost of Rs. 10 crore on five acres of land. Mr. Chinchansur said eligible candidates would be trained for jobs in textile parks that were expected to come up at Kadechur and Badiyal Industrial hubs. D. Raju, Commissioner of Textile Development, was among those present.
SOURCE: The Hindu
KN Balagopal, CPI(M) deputy leader in Rajya Sabha, who was a member in the Select Committee of the Upper House on the GST Bill and has filed a dissent note, feels that GST will take away the rights of States to decide taxes according to their socio-economic situations. He warns that the Bill, if passed, may create a Greece-like situation in India, too. Edited excerpts from an interview with BusinessLine :
You had filed a dissent note to the report on the GST Bill. What are your main concerns?
Several provisions in the GST Bill will have to be reconsidered, particularly in the light of the situation in Greece. Like in Greece, finance capital wants India to follow its diktat, without looking at the ground realities. If implemented, GST will take away the rights of States to plan their revenues. Finance Ministries, both in the States and at the Centre, will end up as distributing agencies with no power to take policy decisions. Budgets will be mere papers and the GST council, controlled by the Centre, will be all-powerful. Even though the Bill will help in expanding the tax net, curbing tax evasion and increasing revenues from tax, the sacrifice of financial autonomy and State-specific financial planning by governments will be negatively affected if it becomes law. And if States’ concerns are not taken seriously, GST will end up benefiting big business houses.
The Congress says they will rally other Opposition parties in opposing the GST. What is your stand?
Our stand is completely different from Congress’s, which is against 1 per cent additional tax for producing States. They are for including alcohol, petroleum and even tobacco in the GST list. If we take the case of tobacco, even during the pre-British period, princely States had different tax rates for tobacco. Tax on such a product should be calculated taking into account the rate of consumption and its effect on people etc. A unilateral approach will do no good for the country and for the federal structure.
So, how do you plan to oppose the legislation?
If you look at the Select Committee report and the recent debates on the Bill, one can see that the Congress and the BJP are on the same page. Left parties and regional parties, such as AIADMK, have given their dissent to certain provisions of the Bill. We will reach out to more regional parties, citing the possible dangers from this Bill.
SOURCE: The Hindu Business Line
A 14-member high-profile business delegation from Oman will visit India next week to develop new business opportunities and strengthen existing trade and investment ties between the two countries. The delegation is scheduled to visit New Delhi on August 10 and will be led by Salem Ben Nasser Al Ismaily, Chairman of Ithraa, Oman's inward investment and export promotion agency. The delegation will also visit Mumbai, a city with considerable growth potential for Omani companies, as part of its effort to focus on improving trade, boosting collaboration and export. "India is one of the fastest growing economies in the world with growth levels reaching between 5-6 per cent," Al Ismaily said. "The market varies widely across its many different regions and states. India may be a complex and challenging market but it is one that should be taken seriously by Omani companies that are seeking to expand and go international," he said. The Ithraa-led delegation will host a business seminar in New Delhi as well as business to business meetings with Indian importers, agents and manufacturers in an effort to develop new business ties in food processing, petrochemicals and plastics. The business opportunities have now stretched beyond the traditional business centers to the emerging cities such as Chennai, Nagpur, Ahmedabad, Chandigarh, Pune and Jaipur, Al Ismaily said. As a follow-up to the delegation's visit, Ithraa has already made plans to host an investment forum with Indian businesses in Muscat on October 12-13 this year. The Oman-India Investment Forum aims to raise awareness of investment opportunities in Oman and provide an opportunity for business leaders from both the nations to make important connections.
SOURCE: The Economic Times
Net profit for the first fiscal quarter ended June 30, 2015 at producer of value added dyed yarns and home textiles, Sutlej Textiles and Industries Ltd dipped 16.68 per cent year over year. In a BSE filing, Sutlej Textiles said that its net fell 16.68 per cent to Rs 29.78 crore in the first quarter of fiscal 2016 as against Rs 35.74 crore in the three months to June 30, 2014. Net profit margins were also down 83 bps to 6.43 per cent in the reporting quarter compared to 7.26 per cent in the first quarter of fiscal 2015. Revenue at the synthetic & cotton mélange yarn manufacturer too declined to Rs 463.31 crore, down 5.84 per cent vis-a-vis Rs 492.06 in the prior fiscal first quarter.
Sutlej Textiles reported an EBITDA at Rs 68.75 crore in the reporting quarter which was down marginally from Rs 68.89 crore it posted in the corresponding period of fiscal 2015. “For the first quarter of fiscal 2016, EBITDA margin climbed 84 bps to 14.84 per cent compared to 14.00 per cent in the same quarter of previous fiscal,” it added. Profit before depreciation and tax (PBDT) for the quarter under review was flat at Rs 55.42 crore, while PBDT margin rose 70 bps to 11.96 per cent from a fiscal ago quarter. Chairman CS Nopany said, “Our performance during the quarter is reflective of the challenging business environment currently prevailing in the sector.” “Multiple headwinds led to a lag in revenue momentum however, improved contribution from higher margin products resulted in sustaining operating profitability, he too added. “The newer capacities for producing value added cotton mélange and cotton blended dyed yarn added last year have started functioning at optimal levels,” Nopany informed.
Sutlej Textiles informed that it achieved higher output of high margin value added cotton mélange and cotton blended dyed yarn and also that higher output of value added products will strengthen its margins and profitability. The transaction of acquiring Birla Textile Mills on slump sale basis has been approved by the Competition Commission of India (CCI) and it expects the transaction to be concluded by September 30, 2015. Birla Textile has capacity of 83,376 spindles and manufactures cotton, synthetic & blended yarn in grey & dyed and with this acquisition, Sutlej's spinning capacities will reach 377,112 spindles post-acquisition. Sutlej Textiles has commenced project work on a brownfield project of expanding capacity of value added by installing 35,280 spindles at its Bhawani Mandi, Rajasthan facility at a project cost of Rs 270 crore.
SOURCE: Fibre2fashion
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 49.97 per barrel (bbl) on 04.08.2015. This was lower than the price of US$ 50.63 per bbl on previous publishing day of 03.08.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3194.58 per bbl on 04.08.2015 as compared to Rs 3238.29 per bbl on 03.08.2015. Rupee closed stronger at Rs 63.93 per US$ on 04.08.2015 as against Rs 63.96 per US$ on 03.08.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 04, 2015 (Previous trading day i.e. 03.08.2015) |
Pricing Fortnight for 01.08.2015 (July 14 to July 29, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
49.97 (50.63) |
55.15 |
|
(Rs/bbl |
3194.58 (3238.29) |
3511.95 |
|
|
Exchange Rate |
(Rs/$) |
63.93 (63.96) |
63.68 |
SOURCE: PIB
After 13 rounds of talks since 2012, Vietnam and the European Union have concluded their negotiation on a free trade agreement which was expected to raise the country's exports to the market by 30-40 percent, Saigon Times Online reported. A ceremony was slated on Tuesday in Hanoi to announce the milestone, it said. Although the pact, which covers a variety of sectors like trade in goods, trade in services, intellectual property and public spending, benefits both the partners, Vietnam will be the bigger beneficiary, according to a study by the European Trade Policy and Investment Support Project. Thanks to low trade barriers, Vietnam's exports to EU will see a two-fold increase annually, instead of 15-20 percent like now. Textile, footwear and food processing are among sectors which will enjoy the largest gains. Moreover, the agreement will also help expand the local service sector, the whole economy's efficiency, and the country's efforts to reduce poverty, the website quoted the study as saying. EU became Vietnam's second largest trade partner in 2013 when the country's exports to the market hit 25 billion euro (US$27.4 billion) in values, while imports from EU accounted for 29 percent of its total imports, according to figures from Eurocham. Their trade value raised 9 percent year on year to more than $36.8 billion last year. With 27 state members, EU is also a major investor in Vietnam with more than 2,030 projects effective till now, mostly in industry, construction and services. Their registered capital totaled over $36 billion.
SOURCE: Thanhnien News
The 400-million-strong U.S. market, the one that almost every country wants to export their goods to, plays such a crucial role in today’s world due not only to its size, but also to the technologies and working styles the American economy possesses, pundits said at the "20 Years of Vietnam-U.S. Relationship: A View from the Trade Perspective" workshop in Ho Chi Minh City on July 31. More importantly, the two economies, located on opposite sides of the Pacific Ocean, may go hand in hand along with the ten remaining economies when the Trans-Pacific Partnership (TPP) trade agreement is signed.
The TPP is a proposed regional free trade pact aimed at eliminating tariffs and lowering non-tariff barriers that is being negotiated by 12 countries throughout the Asia-Pacific region. The countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam, which collectively contribute almost half of global output and over 40 percent of world trade.
Wide open doors for trade, investment
Economic and trade relations between Vietnam and the U.S. will reach a new stage of development in many fields when the TPP is realized, the experts said. Rena Bitter, U.S. Consul General in Ho Chi Minh City, said that 20 years ago no one would have thought about what the two countries have achieved economically today. In 1995, trade between the two countries was about $500 million, while the 2014 figure was around $36.3 billion, a 73-fold rise. The 2014 value represented a 20 percent year-on-year surge. The trade numbers will continue to soar, possibly at a faster pace, when the TPP is concluded, as it will create a new area covering 40 percent of global trade, Consul General Bitter added. After 20 years of normalized relations between Vietnam and the U.S., currently the highlight which is most-mentioned is probably the TPP, said Tran Tuan Anh, Deputy Minister of Industry and Trade and deputy chief of the Central Economic Commission.
The TPP is the prototype of a diversified and deepening cooperative relationship toward a market economy and free trade, Anh said. With the TPP, Vietnam-U.S. economic relations will be raised to a new level, he added. Luong Van Tu, former chairman of the Vietnam-American Joint Trade and Economic Committee, said the two countries laid the stepping stone for trade relations with a bilateral trade agreement which cut nearly 300 import tariff lines in 2000. Three years later the two nations signed new bilateral trade pacts to pave the way for Vietnam to enter the World Trade Organization, with 10,000 import duty lines to be cut, including that levied on garment and textile products.
If the TPP pact is signed and implemented, Vietnam’s exports to the U.S. will likely rise to $50-60 billion annually, Tu added. Improvement has not only been seen in trade, but also in the investment inflow to Vietnam, which surged from $126 million in 2000 to $11 billion in 2013, he added. If the TPP is adopted, the key export sectors of Vietnam, such as garment-textile, footwear, furniture and electronics, will all benefit when tariff barriers for those items are reduced to zero percent. In some industries, Vietnamese shipments to the U.S. are just behind China, so when the TPP is clinched, Vietnamese enterprises will have the opportunity to improve the competitiveness of their goods there.
Bigger market share
Le Quoc An, chairman of the advisory board of the Vietnam Textile and Apparel Association, said besides the benefits from tax reduction, worth around $1.7 billion annually, the market share of Vietnamese garment and textile items in the U.S., which currently stands at 10 percent, may have a chance to double in the next decade. In the last ten years, Vietnamese garment and textile products exported to the U.S. have grown 398 percent in value and enjoyed an average growth rate of 15 percent per year. Last year, export turnover topped $10 billion, second only to China. In 2014, China's textile and apparel shipments to the U.S. amounted to $42 billion, making up a 37 percent market share. So when the TPP is signed, the gap between Vietnam and China in the U.S. market will be narrowed. But what is more important, according to An, is the improvement of the capability of Vietnamese garment and textile producers in the world’s value-added chain. About fifty percent of the value added Vietnam earned while exporting $24 billion dollars worth of textiles and clothes globally last year came from the U.S. market, he elaborated. As most Vietnamese exporters have begun to work directly with American retailers or through only one or two intermediaries, the value added for the local garment and textile industry has increasingly improved, An said. Many important human resources working in the textile industry have been trained in the U.S., which is among the largest benefits Vietnam has reaped when doing business with them, An added. Regarding education and training, in 1995 only 800 Vietnamese students studied or conducted research in the U.S. Today that number has surged to over 17,000, helping Vietnamese rank eighth among the community of foreign students studying in the North American country, said Tran Tuan Anh, Deputy Minister of Industry and Trade.
SOURCE: The Tuoitrenews
All Pakistan Textile Mills Association (APTMA) Chairman S M Tanveer has deferred the August 7 strike announced by the textile industry for a month after Finance Minister Ishaq Dar gave his assurance to resolve the industry’s issues by August 31. Tanveer, during a press conference on Tuesday, said the general body of the association had given him the mandate for putting off the strike. “We will call another general body meeting on September 4 to decide whether to hold the strike for one day or an indefinite period in case the government fails to resolve the issues,” he said. Tanveer said he had complete confidence in the pro-industry approach of the current government and the decision of deferring the strike has been reached on the request of the finance minister who has constituted four committees to resolve the issues. “These four committees have been constituted to tackle issues related to the Ministry of Commerce, Water and Power, Oil and Gas and the Federal Board of Revenue (FBR),” he further informed. He said the association had already given a detailed presentation on the problems to Commerce Minister Khurram Dastgir and the Senate Standing Committee on textile. “There is a consensus from all participants that it is due to the government’s wrong policies that the textile industry is on the verge of a complete shutdown,” he added. “The government has burdened the industry with Rs 38 billion in Gas Infrastructure Development Cess (GIDC), Rs78 billion in electricity surcharge and Rs65 billion in innovative taxes,” he said, adding that the total impact of this burden came around Rs157 billion per annum, which is equivalent to 12 percent of the sales of the industry. Comparing Pakistan’s exports with neighbouring countries, he said textile exports in Vietnam had increased 230%, in Bangladesh 160%, in China 94% and in India 94% during 2006 and 2013. “On the other hand, Pakistan registered a meagre growth of 22% during the same period, which is even less than the world average of 44%,” he remarked. He said the viability of the industry and employment of around 15 million workers was at stake because of the undue burden on the sector.
SOURCE: The Tribune
The Nigerian Investment Promotion Commission (NIPC) said it will to work closely with National Cotton, Textile and Garment (CTG) Policy Committee to promote Made-in-Nigeria products. “This will also encourage the resuscitation and restoration of Nigerian textiles industries in the country,” NIPC informed in a press release. Uju Aisha Hassan Baba, executive secretary of NIPC said, “NIPC is not only promoting foreign direct investment (FDI), but also encouraging local investment, as they too contribute to the growth of the economy”. She remarked that NIPC will partner with the CTG Committee to realise most of its initiatives to encourage and promote indigenous products, as that will spur the creation of wealth and generate employment. She added that NIPC is aware that there are wealthy Nigerians, who if encouraged, will invest in their home economy rather than keeping their money outside the country. She stressed that NIPC will strive in its marketing drive to seek investors who will partner with Nigerian investors to resuscitate the ailing textiles industries in the country.
Baba also disclosed that NIPC is already partnering with the state governors to promote agriculture in order to grow products like cotton, which is the main raw material for textile and garment products. “NIPC has put in many strategies in place to realise its mandate of attracting and promoting investments into the economy,” she informed. The patron of Made-in-Nigeria products, William Iheanacho Otabil stated that the CTG policy which was announced last year was envisioned to create a competitive cotton, textile and garment sub-sector. “The vision was to make it capable of stimulating and supporting sustainable value addition along the entire textile value chain,” Otabil too added. He announced that as part of their initiative to propagate Made-in-Nigeria products, they will host Buy-Naija Dress Day, Buy-Naija Military Dress and buy-Naija School Dress, all aimed at patronising Nigerian textiles.
SOURCE: Fibre2fashion
A researcher and faculty member at the Islamic Azad University of Arak in Iran has come up with a new way to dye polyester fabrics more efficiently, according to an agency report. Funded by Iran National Science Foundation (INSF), Dr. Sheila Shahidi's approach aimed at tackling the problems in traditional dyeing methods, such as weak dyeability, high-temperature, excessive use of water, and discharge of several chemical additives. In the study, polyester fabrics were modified by dielectric barrier discharge (DBD) and then dyed with different classes of natural (henna, madder, lotus, and matricaria) and synthetic (acidic, basic, and disperse) dyes. The approach introduced in this work comprises the formation of functional groups on the surfaces of the polyester fabrics by using atmospheric pressure plasma. The results show that DBD modification on the surface of fabrics improved their dyeability with the extent of improvement higher in natural dyes than in synthetic ones. Moreover, without using water and chemical additives, atmospheric pressure plasma makes the process of dyeing eco- friendly.
SOURCE: Fibre2fashion
The testing, inspection, and certification (TIC) market is expected to reach USD 7,221.01 Million by 2020, growing at a CAGR of 4.6% between 2015 and 2020. Textile Testing Market players such as SGS Group (Switzerland), Intertek Group plc (U.K.), and TUV SUD (Germany) have been focusing on geographical expansion, so as to broaden their portfolio and geographical presence. For Instance in February 2015, the SGS Group (Switzerland) opened a new softlines testing laboratory in Tianjin (China). The new lab offers testing services for various types of textiles, apparel, and leather products.
Increasing export of textiles from developing regions and growth of the technical textile market are some of the factors driving the testing, inspection, and certification (TIC) market. Small to medium sized TIC companies face challenges in terms of receiving accreditation as it requires heavy investment. However, various government organizations are providing incentives in the form of funds and relaxation of accreditations for the SMEs in the TIC textile market, as the latter are required to make huge investments to get accredited by accreditation bodies such as International Organisation for Standardization (ISO) and American Society for Testing for Materials (ASTM).
The global testing, inspection, and certification (TIC) market has been segmented into North America, Europe, APAC, and RoW. The studied market in North America has been further segmented into the U.S. Canada, and Mexico. The European Textile Testing Market has been segmented into Germany, Switzerland, U.K., Turkey, and others. Countries such as China, Japan, India, Bangladesh, and others are included in the APAC region. The said market in ROW has been further segmented into the Middle East, South America, Africa, and others. Europe was the leading region in terms of the market share in 2014, due to the presence of prominent market players such as SGS Group (Switzerland), Bureau Veritas Group (Belgium), Intertek Group PLC (U.K.), TUV Rheinland Group (Germany), and others.
Some of the key players in the Textile Testing Market include AsiaInspection (Hong Kong), BSI Group (U.K.), Bureau Veritas Group (Belgium), CTI (Centre Testing International) (China), Hohenstein (Germany), Intertek Group PLC (U.K.), SAI Global Ltd. (Australia), SGS Group (Switzerland), Testex AG (Switzerland), TUV Rheinland Group (Germany), TUV SUD Group (Germany), Eurofins Scientific (Luxembourg).
SOURCE: The PR NEWS Wire
The last quarter of 2001 saw two dramatic events that had a transformational impact on the global community: first the terrorist attacks on the US in September followed by the launch of the Doha Development Round through the WTO's 4th Ministerial Conference in Qatar in November. A couple of months prior to the commencement of the conference, Muraosoli Maran, then the Indian commerce minister, commissioned a book to be released prior to the meeting. The objective was to capture the sentiments and, more importantly, the fears of the developing and under-developed countries, as seen through the member states of SAARC. Bibek Debroy and I edited the volume, which, thereafter, went into multiple editions.
After the manuscript was complete, Bibek and I argued about the title. All the chapters in the book were highly critical of the WTO and the arm-twisting of the developed countries - especially the US and EU, as also the autocratic manner in which the WTO, under its then director general, Mike Moore, was functioning. I had argued that there was a clear political agenda, driven primarily by the US, as to why the Doha Round was being dubbed the 'Development Round'. None of the developing countries, for instance, were demanders of a Development Round. It was a proposal from the developed countries, especially the US. In my view, post-9/11 and the WTO negotiations were intrinsically linked. Washington needed friends because chasing Al Qaida through overt and covert operations would necessarily require friendly and cooperative governments in the developing world. It was my assessment that proposing a development round was to win friends and influence governments in poor countries. This was nothing short of deception at the highest level. After all, a genuine development round meant that trade would lie at the heart of the development agenda with the developed world unilaterally opening-up to products from poorer countries. This was least likely to happen. I believed then, and I maintain now, that the WTO is a rich man's club and that Doha was a fraud foisted on the developing world as it was always intended to collapse. My suggestion to Bibek, consequently, was to title the book: Savaging the WTO. With supreme diplomatic finesse, Bibek persuaded me to agree to something milder and the book was finally published under the title: Salvaging the WTO Future - Doha and Beyond. Maran released the book on the eve of his departure for Doha and was forthcoming in expressing his apprehensions on the proposed Round.
After almost 15 years, the Development Round negotiations are yet to be concluded. Nobel Prize winning economist Joseph Stiglitz had argued that "the so-called free trade talks should be in public and not corporate interest" if they are to be genuinely development oriented; instead, in his view, the talks would perpetuate a managed trade regime and a negotiation process that is undemocratic and non-transparent. The mandated deadline of July 31 to agree on a clearly defined work programme on the remaining Doha issues, especially because they have been so polarizing, has gone without substantive progress. India, too, has already given indication that it will not ratify the trade facilitation pact for want of any visible progress in negotiations on finding a permanent solution on food security for public stockholding purposes. At a time when farmers' suicides continue unabated, the government recognizes that it is first accountable to its own people and not to an amorphous multilateral trading system that is visibly biased in favour of developed countries. For the WTO Secretariat, the talks are a make-or-break scenario that clearly reflects the widening chasm between rich and poor countries. Indeed, even the most diehard negotiator would concede that talks on the Doha Development Round are on the verge of collapse.
The US does not see any significant gains through a successful round. Consequently, it is focussing on regional agreements. Europe is crisis-ridden to offer any major concessions. The Chinese economy is under severe strain with signs of a slowdown. A well-crafted deception, forged in the aftermath of 9/11, has played itself through successfully. Development was never the end objective. Perhaps it is time to ask if WTO, controlled as it is by the corporate sector and developed countries, can legitimately be the policeman, guardian and rulemaker of the international trading system. If not, the obituary for the Doha Development Round might well turn out to be the obituary for the WTO as well.
SOURCE: The Economic Times
