India, Japan to join forces on WTO issues

By Our Special Correspondent

NEW DELHI, MAY 5. India and Japan, while reiterating their commitment to a rule-based multilateral trading system, have stressed that confidence building measures should precede attempts to resume the World Trade Organisation (WTO) ministerial conference. In the talks held between the Union Commerce and Industry Minister, Mr. Murasoli Maran, and the Japanese Minister for International Trade and Industry, Mr. Takashi Fukaya, here today, Mr. Maran stressed that the system should substantively address the concerns of developing countries.

Both sides recognised the need for continuing with the mandated negotiations and reviews. They were of the view that there was need to improve the existing rules, especially anti-dumping, to make them meaningful particularly for the developing countries. It was agreed to continue further discussions and keep in close touch on WTO issues to strengthen coordination and cooperation particularly with reference to strengthening the multilateral trading system and capacity building for developing countries and improving the existing rules.

The two sides also shared the view that the WTO members should not resort to social issues such as labour standards for protectionist purposes. Mr. Maran specifically emphasised that the issue of labour standards at the international level would be appropriately addressed only in the International Labour Organisation (ILO) and not in the WTO.

Responding to the Japanese stand that rules on investment and competition policy could contribute to the world economic growth, Mr. Maran said a Multilateral Investment Agreement was not needed for increasing investment flows, which depended primarily on two factors - adequate return on investment and security or protection of the investment.

Bilateral investment protection and promotion agreements, he felt, were sufficient to give the required protection to investors and ensure investment flows.

Regarding agriculture, while Japan emphasised on the ``mulitfunctionality'' of agriculture, the Indian side stressed that sufficient flexibility and autonomy should be available under the WTO Agreement on Agriculture to large agrarian economies like India for them to be able to look after their concerns of food security and rural employment. Mr. Maran noted that food security was of prime concern to India.

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