India, China influencing global trade patterns: WTO

Tags: News
Emerging economies like India, China and Brazil are no longer policy takers but are significantly influencing the pattern and scope of international trade, according to WTO director general Pascal Lamy.

These emerging powers — China, India, Brazil, Mexico, Indonesia, Malaysia, South Africa — and many others are no longer policy takers.

These countries now increasingly influence the pattern and scope of international trade, creating new supply and demand pulls and flexing their influence in international organisations, he said recently at the Richard Snape Lecture.

Lamy said, “This is no longer the world of the twentieth century dominated by the US pillar on one side and the European pillar on the other. We are in a twenty-first century multi-polar world.”

The WTO chief said emergence of some developing countries as key players and as real contributors to global dialogue on trade and economics is a fundamental feature of this new geo-political reality.

He said the global network of imports and exports is no longer just the North-South paradigm of the past century.

Increasingly we are seeing developing countries as producers and as markets for each other and this is one of the growing patterns of the new landscape of trade, he added.

The WTO chief said that the in the past 20 years, merchandise trade between developing countries has expanded much faster than the North-South trade.

A recent report by UNCTAD notes that in 2010 South-South exports made up 23 per cent of world trade compared with just 13 per cent in 2000.

Developing countries are now the largest market for other developing countries. While this is encouraging, the contribution of developing regions to South-South trade is highly skewed, he said.

Asian countries make up more than 80 per cent of South-South trade, with the shares of Africa and Latin America being just 6 per cent and 10 per cent respectively in 2010.

Lamy said that economic ties between Africa and China and Africa and India are growing considerably.

Trade between China and Africa will likely hit upwards of $200 billion in 2012, up 25 per cent year on year. If this trend continues, reports are that Africa could surpass the EU and the US to become China’s largest trade partner in three to five years, he added.

EDITORIAL OF THE DAY

  • India’s political space acts as a safety valve for maverick politicians and frustrated electorate

    While it is easy to be cynical about Indian democracy and its ways, the fact is that the vast political space that the system provides for in this cou

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Taslima Nasreen

Bangladesh no country for atheists

It’s a matter of pride to be a freethinker, atheist ...

Purnendu Ghosh

Silence makes you aware of yourself

Often, we don’t feel the necessity of making contact with ...

Shona Adhikari

Artistic focus on women's empowerment

The focus on the girl child remains an important one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture