India has supported a crucial proposal made by the African Group at the WTO for recalibration of multilateral rules, such as those on subsidies and investments, to allow developing countries to have the policy space to pursue green industrialisation. 

A comprehensive work plan on the proposal, that was also supported by Russia, China, Brazil, Indonesia, the LDC group and the Pacific Group, will be presented by the African Group in July.

“New Delhi not only supported the African Group’s proposal but also initiated discussions on the role of technology transfer for environmental solutions,” a Geneva-based trade official pointed out. The discussions took place at the WTO Committee on Trade in Environment meet last week.

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Vicissitudes of global trade

With the EU already throwing challenges for developing countries with its Carbon Border Adjustment Mechanism (CBAM) and Deforestation Regulations (DR), the proposals hold additional significance.

Green-tech policies

Developed nations have already used “discriminatory” green technology policies such as subsidies, local content requirements, and state aid to enhance their competitiveness, the ACP group noted in support of the African Group proposal. 

“The African Group’s paper, first circulated in May, had noted that several members wanted a rebalancing of existing trade rules. The rules that needed changes per the proposal include Agreement on Subsidies and Countervailing Measures (ASCM), Trade-Related Investment Measures (TRIMs), and Trade Related Aspects of Intellectual Property Rights (TRIPS). The list of demand also included technology transfer as developing members are constrained from industrial upgrading,” the official said.

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Several developed countries, however, were not supportive of the proposal. “Some developed nations said that the discussions on the matter should take into account how full and effective implementation of WTO commitment had helped members become part of global supply chains. This enabled developing countries to leapfrog polluting technologies and adopt cleaner alternatives,” the official said.

Members also considered China’s proposal on “advancing multilateral discussions on Trade-Related Climate Measures” and India’s request to initiate discussions on the role of technology transfer for environmental solutions.

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