For those of our members within X2 Logistics Networks who are keep up to date on world trade developments, you might already be aware of the failed global trade deal that was awaiting ratification by WTO members. Unfortunately for those that were hoping for such a deal to go through, hopes were dashed as 31 July rolled by and the ratification of the agreement failed due to India choosing to not ratify the agreement.India chose to not ratify the agreement because they preferred to have had another agreement set in place before the global customs deal. This agreement envisioned by the Indian government that would allow for developing states to subsidize and stockpile foods.
Analysts who have been looking at the Indian decision to veto believe that it is, in a sense, the end of an era for the WTO. Some believe now that the time of trying to create grand global consensus for the promotion of trade is over. The Bali Package was expected to be rubber stamped and the WTO would achieve something on a scale that it had been unable to do in past years. Now analysts expect the WTO to break into smaller factions of like-minded states who will take it upon themselves to do what is necessary for regional or specialized trade to grow between their countries. Some members have already discussed a plan to push the Bali Package forward but exclude India from being included in the agreement.
We will have to see what trade representatives at the WTO do and how they see best fit to proceed. Will we see an â€œall but Indiaâ€ option or will small regional or specialty groups emerge to create their own agreements and push forward and wait for the rest of the world catch up? Brazil and China have already decided to implement at least some aspects of the Bali package. Maybe India will be left in the cold by its decision to be the sole vetoing state.
Our special networking event is about smart freight forwarders coming together to grow and develop business within the group by providing an opportunity for all members to gather in one place to form and extend personal relationships.