WTO deadlock hampers global trade

Concerned over the slow progress in WTO talks, the Economic Survey on Monday called for "dedicated efforts" from all member nations to expand multilateral trade and check the adverse impact of supply-side shocks, especially from high crude oil prices, on global economic outlook.

"The lack of sustained progress on Doha Development Agenda continues to impede rapid expansion of global trade," the Survey for 2005-06, tabled in Parliament today, said.

The survey, however, noted that the Doha round of talks received a fillip with a "positive outcome" at the Hong Kong Ministerial.

Economic Survey 2005-06

Developing economies like India have managed some concessions in the form of market access for industrial goods and greater facility for protecting livelihood of farmers.

Observing that some concerns, particularly high crude oil prices, shroud global economic outlook in medium term, the survey said that limiting the impact of supply-side shocks required dedicated efforts for expanding global trade agenda. "Energy price-induced inflationary expectations can also raise global interest rates, and affect global capital flows, particularly to emerging markets," it cautioned.

Besides multilateral trade, India's strategy to engage in regional trading pacts is also bearing fruit, the survey said. While the share of 11 major trading partners has remained same at 48 per cent over the past decade, the share of Asian countries has increased in recent years.

China, UAE and Singapore have emerged as India's second, third and fourth largest trading partners in 2005, even as the US remained at the number one position. The combined share of China and Hong Kong at 9.4 per cent was close to 10 per cent.