India, Brazil, SAfrica distressed at Doha impasse

India, Brazil and South Africa (IBSA) has underscored the need for resisting protectionism in the current economic scenario.

"Global economic conditions are challenging, this is almost fourth year of recession. The only way is to engage more and work for a multilateral trade regime," Indian Commerce and Industry Minister Anand Sharma told reporters in Davos on Saturday.

At the IBSA meeting, on the sidelines of the World Economic Forum (WEF) annual event, the trade ministers said that developed countries had caused distortions by high-level of protection in the form of tariffs and subsidies in agriculture.

These distortions "continue to undermine the development prospects of developing countries, especially the least developed among them," an IBSA declaration said.

It said, "The ministers expressed deep disappointment at the current impasse in the Doha Development Agenda (DDA) negotiations..."

The IBSA ministers met ahead of the informal meeting of important WTO members, including India, US and South Africa.

Besides Sharma, Brazilian Foreign Minister Antonio Patriota and Rob Davis of South Africa were present.

The meeting hosted by the Swiss authorities was also attended by Director General of the World Trade Organisation (WTO) Pascal Lamy.

US Representative Ron Kirk said "We need to have a new start and have a beginning towards putting something concrete on the table.... I am hopeful."

Kirk's remarks are important given the impression among the developing countries in the midst of slowdown and the US elections; America does not seem to be keen on pushing for opening up of its economy.

About the discussion, Sharma said it was very frank and healthy. "One thing that came out of the meeting with absolute clarity is that all the ministers and political leaders are collectively committed to keep the flame burning.

"Even small measures would move in the direction of the final agreement. Many bilateral and regional agreements are there and we are also pushing some of them but there are some issues which has to be through the WTO," he said.

Meanwhile, during a panel discussion, WTO Director General Pascal Lamy said most of the problems related to the WTO negotiations are political in nature.

"The bilaterals (agreements) have mostly been between large players. The rules-making functions of the WTO are not working totally, but that does not meant that bilaterals have an advantage over multilaterals... In bilaterals, you can pick and choose the partners," he pointed out.

Speaking on the occasion, European Trade Commissioner Karel De Gucht said that the problem is certainly political within WTO.

"Doha round began ten years ago. The emerging economies have largely emerged since then. Not just China, even India and Brazil have emerged as major players on global platform," he added.