Staff Reporter | 31 Jul, 2008
The breakdown of trade liberalisation talks at the World Trade Organization (WTO) mini-ministerial at Geneva could lead to protectionist tendencies across the globe, exporters fear.
Developed countries might react to the failure of talks by imposing new trade barriers, they said in a statement issued by the Federation of Indian Export Organisations (FIEO) in New Delhi on Wednesday.
The services sector could be affected due to new curbs, FIEO president G K Gupta said.
Failure to achieve a breakthrough in the Doha round could also force many WTO members to focus on regional trading pacts, he told mediapersons in the national capital. Protectionist behavior could hit global economy and cause unemployment is the apprehension of exporters.
“While India should retaliate against such measures, it is not clear if the government will take a tough stand since it involved political equations as well,” G K Gupta said.
The FIEO president congratulated commerce & industry minister Kamal Nath for protecting the interests of farmers. There can be no compromise on livelihood security, he said.
