WTO: India supports African Group’s demand for policy space to pursue green industrialization

India has supported an important proposal made by the African Group at the WTO to recalibrate multilateral rules, such as on subsidies and investments, to provide policy space for developing countries to pursue green industrialization.

A comprehensive action plan on the proposal, which was also endorsed by Russia, China, Brazil, Indonesia, the LDC group and the Pacific Group, will be presented by the African Group in July.

“New Delhi not only supported the African group’s proposal but also initiated discussions on the role of technology transfer for environmental solutions,” a Geneva-based trade official said. The issue was discussed at the WTO committee meeting on environmental trade last week.

These proposals take on additional significance as the EU already presents challenges for developing countries with its Carbon Border Adjustment Mechanism (CBAM) and Deforestation Regulations (DR).

Green-tech policies

The ACP Group, in support of the African Group’s proposal, said developed countries already use “discriminatory” green technology policies such as subsidies, local content requirements and state aid to increase their competitiveness.

“The African Group paper, first circulated in May, noted that many members wanted a rebalancing of existing trade rules. According to the proposal, the rules that require changes include the Agreement on Subsidies and Countervailing Measures (ASCM), Trade-Related Investment Measures (TRIM), and Trade-Related Aspects of Intellectual Property Rights (TRIPS). The list of demands also includes technology transfer as developing members are hindered from industrial upgrading,” the official said.

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However, many developed countries were not supportive of this proposal. “Some developed countries said that discussions on this matter should take into account how full and effective implementation of WTO commitments has helped members become part of global supply chains. This enabled developing countries to move ahead of polluting technologies and adopt cleaner alternatives,” the official said.

Members also considered China’s proposal on “advancing multilateral discussions on trade-related climate measures” and India’s request to initiate discussions on the role of technology transfer for environmental solutions.