In a discussion 'The Future of Global Trade,' compered by former Congressman James Bacchus, who is also an erstwhile chairman of the Appelate Body of the World Trade Organisation, at the 33rd anniversary summit of the USIBC, Schwab said, "India may punch above its weight when it comes to influence in global trade politics, but in many ways punches under its weight, when it comes to actual global engagement in trade."
She said, using US-India trade as an example, "We may be India's largest trading partner, but India is today only our 17th largest trading partner and in the company of Ireland, and Belgium and Singapore and Malaysia - countries with populations of four to roughly 25 million people."
"India and the United States should have significantly more interaction in terms of trade and investment," she added.
Schwab, also frowned upon India's taking the leadership in terms of some antiquated 'developing country solidarity' in being a road-block to the successful completion of the Doha Round of global trade negotiations and argued that India should instead "articulate its self-interest in seeing other advanced developing countries opening new markets in the Doha Round."
She explained that "India has a long and proud and powerful tradition as a leader in North-South based issues," but argued that "the fundamental difference between the Doha Round and previous trade rounds is that this is not a North-South
negotiation."
Schwab said, "This is a round where we need to see and are seeing in many ways a fundamental shift in alliances. These are not alliances based on levels of development, these are not alliances based on geography, these are alliances based on shared economic interests."
"And, if you look at the biggest beneficiaries of the global trading systems and the biggest potential winners, they are many developing countries that have been pro-active and pro-trade in the Doha Round," she added, from countries like Chile, Mexico in "our hemisphere," and countries like Singapore and Malaysia in Asia.
Schwab bemoaned that however, "there are countries that are united because of their 'developing country solidarity' where when you actually look at the economic and commercial interests of these countries, they are not the same. And, therefore, there are countries in these blocs that are sacrificing economic and commercial self-interest for nominal developing country solidarity."
She said that while there is not a single country- not the United States, not India, that is in a position to save the Doha Round, for which there is no single solution, on the other hand, "all it takes is a handful of countries, because of the way the WTO operates, to break the Doha Round to a crashing halt."
