The existing wave of protectionism across the world will not render any solution for any nation, Director General of World Trade Organisation (WTO) Roberto Azevedo said on Wednesday, choosing not to comment on the United States' proposed H-1B visa policy.

Last month, the Donald Trump-led US government proposed to make changes to the H-1B visa programme — mainly used by technology firms — which has contained highly specified jobs for American citizens.

On being asked if India has the option to drag the US at WTO regarding its protectionist visa policy, Azevedo said that countries have the option to either hold consultations amongst themselves or go to WTO’s dispute resolution body.

Azevedo further said that the WTO expects the trade growth figure for 2016 at 1.7 percent, the lowest pace of trade growth since the 2008 financial crisis and growth figure for 2017 is seen 1.8-3.1 percent "We must nonetheless emphasise that turning to protectionism will not solve the problem. On the contrary, it will make it worse...raising trade barriers will hurt us all...including India," said Azevedo, who is on a two-day visit to India. 

Azevedo further said that countries should focus on social policies and protectionist action has to be supplanted by other factors, such as education, and income safety net for individuals.  Azevedo said he also met representatives from various sectors such as online retail, technology and telecom to discuss various issues pertaining to global trade as well as trade facilitation in services.  Trade Facilitation in Services (TFS) aims at easier movement of services, which includes movement of skilled professionals across the border. 

Trade Facilitation in Services

Trade minister Nirmala Sitharaman on Wednesday said that India will soon submit a legally vetted document on the Trade Facilitation in Services. 

“Trade Facilitation (in services) is a great area and has to be taken up at necessary stages. Within a few days, a legally vetted document will be submitted. A team is going from India to Geneva and along with our ambassador there it will take up the matter with various groups....Want the trade facilitation agreement on services to be part of  WTO the ministerial at Buenos Aires (Argentina) ,” Sitharaman said. Sitharaman and Azevedo discussed a number of issues including India’s concerns on food security, trade facilitation in services, agriculture, as well as e-commerce.

Calling TFS is a positive movement, Azevedo said members are waiting for clarifications regarding the issue. "We need to have detailed conversations to move ahead in this area,” he said.

Food Security

Azevedo said that the WTO has the mandate to find a permanent solution to the stockpiling of food by December 2017. A temporary solution had come to place at the Bali Ministerial meet in 2014 that allowed WTO’s Trade Facilitation Agreement in goods.  “I would say that on food stockholding, talks are more at an advanced stage and we have the mandate to conclude the negotiations by the end of the year,”

Azevedo said, adding that the discussion paper on the topic has been presented by G33 countries.  The issue on India’s stockholding of food would now be discussed at the ministerial meet at Argentina in December.

Feb 10, 2017
Source: Money Control - CNBC