INDIA’s TRADE Beyond WTO:
WTO (world trade organization) has 159 members from all over the world. In brief WTO handles all the regulation of trading between its member countries. And EMs (emerging markets) are one of the biggest contributors in global trade.
Global trade is quite complex as it include border disputes between countries, currency conversion and many more asymptotic factors. As its one of the function WTO tries to minimize the dispute and finds trade settlement between countries. Synergizing global trade and nurturing it is upmost goal of WTO. On 7th December 2013 there was a WTO conference on cross border commerce at Bali. This is the first time since 1995 over 190 ministers agrees on something. Core of this meeting is called as trade facilitation which called as “cutting the red tape” which includes reducing the costs and delays involved in international trade.
According to Washington bank global trade will be around $1 trillion and will add up to 20 million jobs. What’s for India into this agreement? . Apart From jobs and import-export trade Indian exporter can look forward for easier deals in European market..It also includes the speedy clearance, low tariff charges between countries and for poor economies it will be easy to penetrate into US market. WTO also approves “peace cause” ,which comprises that no member country can initiate the dispute against any other member country which have breach the subsidy limit under Food security program , which can lead to increase in starvation percentage in that country. Because of these clauses India is backing WTO BALI conference.
Dependence on only one thing is always dangerous so we should look for new ties.WTO only has 160 members but in whole word there are 250+ members. To reducing CAD and stabilizing our Indian economy we should explore new market. According to Department of commerce we import highest from US around $20 billion and highest import from china around $ 28 billion But if we could diversify these data around global then most of our problem regarding import and export will get nullify.
Outside WTO there are trade organizations like TTIP (Transatlantic Trade and Investment Partnership) which includes Whole EU and US. There is also an proposed TPP (trans pacific partnership) which includes countries like Canada ,Malaysia etc,.
We can also penetrate into Africa region which is reach in commodities like Oil, diamond and all forest raw We can look towards poor economies for our importing need and developing economies for our exporting need.