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The Australian-led B20, which is advising the Group of 20 world ’s leading economies on business inititiaves, has urged member countries not to give up on the Bali trade package.
India has effectively vetoed the World Trade organisation’s Bali trade facilitation declaration, which involves a wide range of initiatives to reduce customs red tape.
WTO decisions are made on a consensus basis and India – supported by its pro-communist allies Cuba, Venezuela and Ecuador – have refused to endorse the Bali declaration, made last December by all 159 members.
It sets caps on how much a country can stockpile and subsidise food – India says the agreement is insufficient for its needs. The Bali package was intended to be put into the WTO rulebook on July 31.
Economists say the streamlining and harmonisation of customs practices will save more than $US1 trillion eventually.
B20 Australia – an advisory forum of business leaders led by Wesfarmers’ Richard Goyder – says it’s “extremely” disappointed in the Indian move and has pledge to continue to push the case for trade facilitation.
“We think there’s significant benefits to all countries, particularly developing economies, in freeing up trade facilitation as agreed in Bali,” he says.
“We think it’s disappointing and we would encourage everyone to see if they can get this to happen. It’s important on these trade things to get everyone in because everyone will benefit.”
Research for the B20 suggested the successful and rapid implementation of the Bali agreement could contribute at least 1% to global GDP over the next five years.
Australia is chairing the G20 this year. It will meet in Brisbane in October.