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Advantage India

Advantage India

Author: Balbir K Punj
Publication: The Pioneer
Date: July 22, 2000

In a mood saturated with self-flagellation, it is not surprising that the country has missed the significance of the India-European Union summit held in Lisbon, Portugal, recently.

Apart from several political initiatives India wrested at Lisbon, the event also underlined the fact that the country has emerged as an important player in the global arena, and the world at large has accepted this reality, howsoever, reluctantly.

Till now the EU has been holding regular meetings at the highest level with only five countries, which are outside its own fold of 15 nations.  Obviously the choice of countries for top level discussions is dictated by their geo-economic importance in the world and their relevance to the EU as a whole and to the member-countries individually as well.  These were Japan and China in Asia, apart from the US, Russia and Canada.  It's for the first time that India was invited to the event.  And New Delhi has been decided as a venue for the next summit.  Going by the speeches made at Lisbon, and the text of the joint declaration issued at the end of the parleys, it is obvious that India has been able to convincingly put across its views on several crucial political issues.

Contrast it with the atmosphere, which was sought to be created in the country and abroad in the wake of Pokhran two year back.  The pack of secular intellectuals led by the Left and their cohorts in the media had termed the BJP-led Government as xenophobic and had predicted India s isolation in the world community following nuclear explosions.  The prophets of doom had painted the town red with the premise that the peaceful world community would now quarantine India, a country governed by an irresponsible warmonger BJP-led Government.

In line with this ill-informed and motivated criticism at home, the EU declaration, issued two years ago began on this harsh note: The European Union reiterates its condemnation of the nuclear tests carried out by India and Pakistan.  These tests pose a grave threat to international peace and security, and seriously damage global efforts to prevent the proliferation of weapons of mass destruction and to bring about nuclear disarmament.  This statement was preceded and followed by sanctions on India by the US and several other developed countries, much to the satisfaction of professional doomsters at home.

Not only this.  At that point of time, India and Pakistan were treated at par and both the countries were seen as posing a grave threat to international peace and security.  Obviously, in the last two years, following Pokhran, India s profile has changed for the better and this is reflected in EU s appreciation of India s stand on various issues.  Along with the rest of the world, the EU has also become aware of the danger that Pakistan poses to the global peace through export of terrorism and by maintaining nurseries that breed jihadis to spread mayhem in the non-Islamic world.  Through the joint declaration, which was made at the conclusion of the summit at Lisbon, the EU has joined hands with India, against both terrorism and drug trade.

The declaration said: We share the conviction that terrorism remains a major threat to regional and international peace and security, and constitutes a serious violation of the rights of innocent individuals and of the integrity of states.  We reaffirm our unreserved condemnation of terrorism in all its forms, wherever it occurs and whatever its motives and origin.  We will strengthen our cooperation in preventing and combating terrorism.  We will bolster joint efforts to counter terrorism and meet all other challenges arising from it both in the regional and international context.  We agree therefore to strive for a Comprehensive Convention on International Terrorism.

On the drug menace, the declaration added: We note with deep concern the increase in drug trafficking as a global problem, which constitutes a major threat to health and reinforces international crime and terrorism.  We agree on the need to strengthen co-operation to combat drug trafficking and drug abuse.

Though Pakistan is not named, there are no prizes for guessing which country the joint declaration had in mind while talking about the twin problems of terrorism and drug.  The fact that both these activities are managed by ISI in the region is now an open secret.

India also held on to its ground on the crucial issue of the need for a new round of WTO multilateral trade negotiations with a broader agenda.  The developed countries (both the US and the EU) have been striving for including in WTO agenda the social issues of labour and environment.  In their words, they want the agenda to be enlarged not as a matter of protection, but as a matter of social justice and sustainability.

Shorn of hype and niceties, the developed countries are indeed asking for only protection in the name of social issues.  The truth is that they are dishonest about the concept of free trade and are reluctant to practice what they preach in sphere of new international economic order.  They plead for free global trade, but want to rob the developing countries of the advantage of cheap labour by bringing in extraneous issues.  The developed countries desperately crave for free access to the Third World markets while seeking to protect their own economies in the name of social issues.  The EU had reiterated its position in unambiguous words when it had held summit talks with the US in May end and with Canada on June 26 just two days prior to India-EU summit.  The EC wanted India to endorse this line at the summit.  To convass for India s support, Mr Pascal Lamy, the Trade Commissioner of EC, spent almost a week (2-8 March, 2000) calling on the top brass in New Delhi.  But, obviously, his labour seems to have gone waste.

The joint declaration did not endorse the EC (and developed countries ) stand on the issue.  Instead it recognised that there were differences on the subject.

The EU-India interaction at the top level has also to be seen in the changing global scenario following the collapse of the Soviet Union.  From a bi-polar world, we have moved to a multi-polar one.  Hopefully this dialogue will set pace for increased trade between the two sides and correct the imbalance in their economic ties.  While EU is India s largest trading partner accounting for about 25 per cent of our global trade, India, in contrast, is only the 17th largest trading partner of EU accounting for a market share of mere 1.5 per cent.

Several Indian goods face market access problem and Non-Tariff Barriers in EU market.  EU has also instituted a large number of Anti-Dumping and Anti-Subsidy investigations against products of Indian origin in the sectors of textiles, steel and pharmaceuticals.  India, along with China and South Korea, is one of the highly targeted country for such EC actions.  Presently, eight products are under Anti-Dumping Definitive Duties (AD) and five products are under Definitive Anti-Subsidy Duties (AS).  Besides, six cases of AD/AS investigations are on against Indian products.  It is estimated that Indian exports worth US$ 350 million are affected by such AD/AS investigation actions.

During the current summit India was able to wrest some concessions in textiles and sugar.  But they were meagre.  A host of trade issues are still to be sorted out.  But then there is room for optimism, for strong economic ties normally follow smart political initiatives.

(The writer, a well known journalist, is a BJP member of the Rajya Sabha.)
 


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