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Spectacular success for India at WTO ministerial conference: Piyush Goyal

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"India is 100% satisfied with the outcome of WTO's MC12 conference. India was successful in ensuring the livelihood of its farmers and fishermen," Goyal said.Spectacular success for India at WTO ministerial conference: Piyush Goyal

Commerce and Industry Minister Piyush Goyal on June 17  said that India has achieved spectacular success at World Trade Organization (WTO)'s  12th ministerial conference (MC12) in in Geneva, Switzerland. Goyal had led India's delegation to the four-day global summit which was extended for two additional days after differences among member nations on key issues, led to intense negotiations.

"India is 100% satisfied with the outcome of WTO's MC12 conference. India was successful in ensuring the livelihood of its farmers and fishermen," Goyal said. He further added that India was successful in convincing all nations to ensure a patent waiver for the manufacturing of Covid vaccines.

Goyal was speaking to the press after the once-in-two-year mega meeting of trade ministers from all 162 WTO member nations concluded in the early hours of Friday.

MC12 finally ended with deals on a global intellectual property rights (IPR) waiver for Covid vaccines and fishing subsidies to protect ocean resources. Moneycontrol had reported on Thursday that both deals were expected to finally pass despite intense debate.

While India had pushed for more comprehensive measures in these areas, as well as for talks on agriculture, the final outcome has been backed by New Delhi as promising.

Everyone had written off this conference as a failed endeavour when it had begun. There had no decision, not even an outcome document at WTO since 2015. There were a lot of arguments against multilateralism and that globalization has no promise. This conference has reestablished the position of multilateral institutions by deciding on issues which were pending for decades," Goyal stressed.

Big wins

"The agreement on fisheries is currently limited to illegal, unreported, unregulated fishing. The discussion on extending this to all government subsidies will take place going forward. Currently, there are no restrictions on government subsidies," Goyal said.

Instead, the WTO has cognizance of India's demand that nations that have consistently supported illegal deepsea fishing be regulated, he added.

Goyal also said that there is no negative outcome for India's agriculture sector. India's public stockholding program for foodgrains will also continue unhindered, he added. On the issue of food security, Goyal said talks have progressed to a certain degree.

A proposed global declaration to not curb foodgrain exports to the World Food Programme (WFP), which seeks to fight hunger in places hit by conflicts, disasters, and climate change, passed in a modified form after being blocked by India.

Reduced scope

"The WTO has also decided to craft a significant response to the pandemic," Goyal said referring to the patent waiver for Covid vaccines. MC12 has also finally approved a temporary suspension of certain parts of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

Suspending parts of the TRIPS agreement would allow countries to overcome the legal challenges posed by patents to ensure the timely provisioning of affordable medical products. However, the deal will only to cover vaccines and not related items.

While India had consistently pushed for keeping all therapeutics and diagnostic technologies part of the deal, the final deal will help developing and poor nations to access much needed vaccines Goyal said. "The WTO has approved the solution that came out of consistent discussions between India, South Africa, United States and European Union on the issue," he said.

Going forward

The WTO has also decided to extend yet again the moratorium on taxation on e-commerce transactions.

The WTO members had agreed to not impose customs duties on electronic transmissions since 1998 and the moratorium has been periodically extended at successive ministerial conferences. However, India has increasingly become a strict opponent of the move and initially blocked the continuation of the moratorium at MC12.

New Delhi had stressed that it is willing to tax electronic transactions in the near future, using Section 9(1)(i) of the Income Tax Act. It also wants to retain the policy space to grant preferential treatment of digital products created within India.

"The moratorium was extended but with a deadline. It was decided that there has to be clarity on this issue by March 2024," Goyal argued. The next ministerial conference (MC13) is set to be held then.

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Creditors will now need to file info about defaults as IBBI amends rules

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The amendment also provides for filing copy of GST returns by operational creditors, along with e-way bills as documentary evidence of the debt and default

insolvency

The Insolvency Bankruptcy Board of India (IBBI) on Wednesday amended insolvency regulations, which now require creditors to file information regarding the assets and liabilities of their corporate debtors, along with other relevant financial information while initiating a corporate insolvency process.

The amendment also provides for filing copy of GST returns by operational creditors, along with e-way bills as documentary evidence of the debt and default.

The same information may also be submitted as part of the claim documents submitted to the Insolvency Resolution Professional or the interim resolution professional for easier verification of claims.

The changes in regulation also addresses the issue of treatment of avoidance applications filed with the Adjudicating Authority after closure of the corporate insolvency resolution process (CIRP).

The amendment includes a definition of significant difference in valuations during CIRP and enables the committee of creditors to make a request to the resolution professional regarding the appointment of a third valuer.

Fuel Prices on June 16: Check petrol, diesel rates in Delhi, Mumbai, and other cities

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Petrol in Delhi costs Rs 96.72 a litre while diesel costs Rs 89.62 a litreFuel Prices on June 16: Check petrol, diesel rates in Delhi, Mumbai, and other  cities

Petrol and diesel prices have held steady for over three weeks, according to a price notification by fuel retailers. Fuel prices have remained unchanged ever since the government on May 21 announced an excise duty cut on petrol by a record Rs 8 per litre and on diesel by Rs 6 per litre.

The cut translated into a reduction of Rs 9.5 a litre for petrol in Delhi and Rs 7 a litre for diesel. Petrol in Delhi now costs Rs 96.72 a litre as against Rs 105.41 a litre before, while diesel costs Rs 89.62 a litre as opposed to Rs 96.67 earlier.

In Mumbai, one litre of petrol costs R s 111.35 and diesel Rs 97.28.In Chennai, petrol and diesel prices are Rs 102.63 and Rs 94.24 per litre, respectively. In Kolkata, petrol is Rs 106.03, and diesel is Rs 92.76 per litre.

Oil marketing companies are passing on the excise duty cut to consumers despite incurring a loss of Rs 13.08 a litre on petrol and Rs 24.09 on diesel. India meets 80 percent of its oil needs through imports.

CNG customers in Mumbai will soon get the fuel delivered at their doorsteps with energy distribution startup The Fuel Delivery signing a 'letter of intent' with the Mahanagar Gas Limited to set up mobile CNG stations in the city. The 24×7 service will cater to all CNG-run auto rickshaws, cabs, private and commercial vehicles, school buses and other vehicles that use CNG, The Fuel Delivery said in a statement.

Lanka gets 3,500 mt of gas; new Indian Credit line to help buy fuel for another 4 months

Sri Lanka Prime Minister Ranil Wickremesighe on Tuesday said that a new Credit Line provided by India will support the cash-strapped island nation's fuel purchase for another four months from July even as an LPG shipment of 3,500 mt reached Sri Lanka, reported PTI.

The gas from this shipment will be delivered to premises that obtain stocks in bulk like hospitals, hotels, crematoriums, he was quoted as saying by the News First website, the report added.

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Exports rise 20.55% to $38.94 bn in May; trade deficit at record $24.29 bn

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India's merchandise exports in May rose by 20.55 per cent to $38.94 billion, while the trade deficit ballooned to a record $24.29 billion, according to the government data released

exports

India's merchandise exports in May rose by 20.55 per cent to USD 38.94 billion, while the trade deficit ballooned to a record USD 24.29 billion, according to the government data released on Wednesday.

Imports during May 2022 grew by 62.83 per cent to USD 63.22 billion, the data showed.

The trade deficit stood at USD 6.53 billion in the same month last year.

Cumulative exports in April-May 2022-23 rose by about 25 per cent to USD 78.72 billion.

Imports in April-May 2022-23 increased 45.42 per cent to USD 123.41 billion.

The trade deficit during the first two months of this fiscal widened to USD 44.69 billion against USD 21.82 billion in the year-ago period.

Petroleum and crude oil imports during May 2022 surged 102.72 per cent to USD 19.2 billion.

Coal, coke and briquettes imports jumped to USD 5.5 billion against USD 2 billion in May 2021.

Gold imports increased to USD 6 billion during the month under review from USD 677 million in May 2021.

Engineering goods exports in May increased by 12.65 per cent to USD 9.7 billion, while petroleum products exports grew by 60.87 per cent to USD 8.54 billion.

Gems and jewellery exports stood at USD 3.22 billion in May compared to USD 2.96 billion in the same month last year.

Exports of chemicals rose 17.35 per cent to USD 2.5 billion in May.

Similarly, shipments of pharma and ready-made garments of all textiles grew by 10.28 per cent and 27.85 per cent to USD 2 billion and USD 1.41 billion, respectively.

Export sectors that recorded negative growth in May include iron ore, cashew, handicrafts, plastics, carpet and spices.

The commerce ministry said the estimated value of services import for May is USD 14.43 billion, exhibiting a positive growth of 45.01 per cent compared to USD 9.95 billion in the same month last year.

"The estimated value of services imports for April-May 2022 is USD 28.48 billion exhibiting a positive growth of 45.52 per cent vis-a-vis April-May 2021 (USD 19.57 billion)," it added.

Also Read:- Oil prices fall as expected U.S. interest rate hike looms

Oil prices fall as expected U.S. interest rate hike looms

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Oil prices dipped on Wednesday, owing to concerns about fuel demand and global economic growth ahead of the US Federal Reserve's scheduled rate hike.Oil prices fall as expected U.S. interest rate hike looms

Oil prices fell on Wednesday on concerns about fuel demand and global economic growth before an expected big hike in interest rates by the U.S. Federal Reserve.

Brent crude futures for August were down $1.27, or 1%, at $119.90 a barrel as of 1001 GMT, in volatile trading.

U.S. West Texas Intermediate crude for July fell $1.44, or 1.2%, to $117.49 a barrel.

"Oil markets are seeing uncertainty over what central banks do next and how that impacts oil demand," said UBS analyst Giovanni Staunovo.

Surging inflation has led investors and oil traders to brace for a big move by the Fed this week – a 75-basis-point increase, which would be the largest U.S. interest rate hike in 28 years.

Stronger monetary policy tightening could "pave the way for recession-induced demand destruction," PVM analyst Stephen Brennock said.

The European Central Bank said on Wednesday it would hold a rare, unscheduled meeting on Wednesday to discuss turmoil in the bond markets.

Adding to demand woes, China's latest COVID outbreak has raised fears of a new phase of lockdowns.

Higher oil prices and dimming economic forecasts would weigh on demand prospects, the International Energy Agency said.

But persistent concerns about tight supply meant oil prices were still holding near $120 a barrel.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are struggling to reach their monthly crude production quotas, recently hit by a political crisis that has reduced Libya's output.

"Because OPEC production is still falling noticeably short of the announced level, this would result in a supply deficit of around 1.5 million barrels per day on the oil market in the second half of the year," said Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt.

Oil prices gained some support from tight gasoline supply. U.S. President Joe Biden told oil companies to explain why they were not putting more gasoline on the market.

U.S. crude and distillate inventories rose last week, while gasoline stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday.

U.S. Department of Energy stock data is due on Wednesday.

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Difference between developed, emerging and frontier economies?

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Investors looking for an international exposure need to understand various categories of economies and the risks involved. Find out the country categories and the things to note before investing thereDifference between developed, emerging and frontier economies? | Business  Standard News

A diverse portfolio helps investors hedge concentration risks. And while portfolio or investment diversification is important, locations or economies where you put your money is equally crucial.
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And when you turn towards international markets, you have the options of investing in developed markets, emerging markets, and frontier markets.

.Let us understand what each of these markets are, and how can one invest in them?
While there’s no one standard definition of each of these markets, experts point out that there are a number of characteristics that are hallmarks of each.
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For instance,  usually have more advanced economies, better-developed infrastructure, and higher per capita income.

.Western economists consider $15,000 to $20,000 per capita GDP to be a sufficient range for developed status.
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That apart, developed economies are also characterised with highly developed capital markets, regulatory bodies and high household incomes.
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However, a high per capita GDP alone does not confer developed economy status without other non-economic factors such as the infant mortality rate and life expectancy.

.For example, the United Nations still considers Qatar, which had one of the world's highest per-capita GDP in 2021 at around $62,000, a developing economy.
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This is because the nation has extreme income inequality, lack of infrastructure, and limited educational opportunities for non-affluent citizens.
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Overall, various organisations including World Bank, the United Nations, MSCI, FTSE, and Standard & Poor’s consider about 25 nations as developed economies.
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Australia, Austria, Belgium, Denmark, Canada, France, Germany, Hong Kong, Italy, Japan, New Zealand, Norway, Portugal, Singapore, Spain, Switzerland, the US, and the UK
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These include Australia, Austria, Belgium, Denmark, Canada, France, Germany, Hong Kong, Italy, Japan, New Zealand, Norway, Portugal, Singapore, Spain, Switzerland, the US and the UK.
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According to the World Bank, countries with low, middle, and upper-middle incomes per capita, relative to incomes in other countries around the globe, are labeled as developing, or emerging.
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Developing countries or economies are those which do not enjoy the same level of economic security, industrialization, and growth like the developed countries.
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It includes the nations that do not have the economic strength of developed nations, but are in the process of becoming developed economies.
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It pegs per capital income for emerging markets between at $4,095 or less.
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But for investors, the emerging markets offer a greater amount of liquidity as well as stability. Emerging market countries include BRICS countries -- Brazil, Russia, India, China, and South Africa.
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Besides, Mexico, Pakistan, and Saudi Arabia are other developing economies.
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The third one is frontier market. They are somewhat less advanced capital markets in the developing world.
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These markets are in a country that is more established than the least . It is still less established than the emerging markets because it is too small, carries too much inherent risk, or is too illiquid to be considered an emerging market.
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That’s why they are sometimes called as pre-emerging markets. So, based on these criteria, frontier markets include the likes of Colombia, Indonesia, Vietnam, Egypt, Turkey and Nigeria.
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One of the easiest ways to incorporate stocks from various markets is to purchase shares in managed funds. Secondly, bear in mind the risks, liquidity, and growth potential of a given country before investing.
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That apart, investors must balance the strengths, weaknesses, opportunities, and threats before investing in a particular country.
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They should also make tradeoffs and place bets among debt, equity, domestic, international, growth and safer options.
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Viral Acharya calls on central bankers not to compromise, embrace risk of losing job

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Acharya, who served as a deputy governor of the Reserve Bank of India for two-and-a-half years, also said public sector banks were causing a huge loss to the Indian taxpayer.Viral Acharya calls on central bankers not to compromise, embrace risk of losing  job

Former Reserve Bank of India (RBI) deputy governor Viral Acharya has called on central bankers to not compromise while performing their duties and raise issues with the government even if it comes at the cost of losing their job.

"Sometimes, the tendency of technocrats in central banks is to think, 'Oh, I have to do my regular day job, I have to do a part of my legal mandate well. So, let me just not confront these issues in my day-to-day dealings with the government. Let me just strike compromises or turn a blind eye,'" Acharya said during a webinar hosted by the International Monetary Fund (IMF) on June 14 on the regulation, supervision, and handling of distress in public sector banks (PSBs).

"Of course, there are many technocrats who don't necessarily follow this approach. But I think that a string of technocrats each doing their job in a narrow space and making these compromises, actually leave their countries with a fairly bad outcome stitched together over periods of time."

"I see compromises by central bankers in India over long stretches of time as having given fairly compromised and terrible banking sector outcomes over the last five decades. Of course, if you raise a voice, if you push for advocacy or reform of public sector banks, if you push openly for legal reforms, that is going to be difficult. It can lead sometimes to (chuckles) you not having the right relationships with the finance ministry. In extreme cases it can lead to a loss of job. But my sense is technocrats should embrace these risks," Acharya said.

Acharya took charge as a deputy governor of the RBI in January 2017. However, he resigned in July 2019, around six months before the end of his three-year term, citing "unavoidable personal circumstances".

Acharya, who is the CV Starr Professor of Economics at New York University's Stern School of Business, enjoyed a fraught relationship with the government during his time at the RBI. In an October 2018 speech (external link), Acharya said governments that "do not respect central bank independence will sooner or later incur the wrath of financial markets". The speech, which came amid a tussle between the government and the RBI over the latter's reserves, created a furore.

Acharya’s resignation from the RBI was preceded by similar high-level exits.

Raghuram Rajan, who served a three-year term as the governor starting September 2013, faced repeated political attacks for his speeches regarding tolerance and central bank independence. In a letter to RBI staff in June 2016, Rajan wrote he would be returning to academia after his term ended.

Meanwhile, Urjit Patel — Rajan's successor as governor — resigned on December 10, 2018, two years and three months into the job. Patel, who cited "personal reasons" in a statement announcing his resignation, also had a turbulent relationship with the government.

In his book 'Overdraft', released in July 2020, Patel wrote that India's fledgling bankruptcy law was deliberately weakened in mid-2018 after the RBI released its famous February 12, 2018 circular that spelt out an amended framework for the resolution of banks' stressed assets. According to Patel, he and the then finance minister, the late Arun Jaitley, were "until then, for the most part...on the same page". However, the aforementioned circular led to a "legal onslaught" on the RBI, Patel wrote.

Patel was succeeded by Shaktikanta Das on December 12, 2018. Das, a former economic affairs secretary, has been widely credited with repairing the relationship between North Block and Mint Street.

Cost of PSU banks

In his comments at the IMF webinar on June 14, Acharya said the Indian banking sector and the taxpayer were suffering from government ownership of banks.

"…certain rules and regulations of the banking sector have to be uniform. For example, you can't have an accounting standard for banks which is different between public sector banks and private banks. Why has India not adopted the IFRS (International Financial Reporting Standards) accounting system? Why has India not adopted expected credit loss provisioning? Why has India not adopted accelerated provisioning standards, which don't backload provisions after defaults and NPAs (non-performing assets) have been recognised?"

Acharya said the source of these problems was the government's refusal to loosen its purse strings further to infuse more capital into PSBs. The non-implementation of these standards and PSBs' ability to "get away with certain kinds of extraordinarily delayed provisioning standards", according to Acharya, was resulting in a “race to the bottom for the entire banking sector”.

Calling the presence of PSBs in India a “historic accident”, Acharya said data and economic forces at play in India’s financial sector showed they were causing a huge loss to the taxpayer.

"Taxpayers in India are running a huge negative account because of the presence of public sector banks. And I think any gains that can be brought to the table, such as creation of bank accounts for financial inclusion…I am never able to attribute that success squarely at the doorstep of public sector banks," the former central banker said.

"I constantly pushed for the reform of these banks — improve their governance, and then as a last step, hand over their ownership to the private sector. It seems it's possible to have banking crises even with private banks, so why take on the additional burden of running this through a massive taxpayer loss?"

Bank does not foresee asset quality challenges, rumours baseless: RBL Bank

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The bank's gross non-performing assets (NPAs) and net NPAs were 4.4% and 1.3%, respectively, at the end of the March quarter, with a provision coverage ratio of 70.4%

Photo: BloombergPrivate sector lender, RBL Bank, clarified on Tuesday that the appointment of R Subramaniakumar as its managing director and chief executive officer is not linked with any asset quality challenges for the bank in the future and that all rumors floating around the same are baseless and unfounded.

In a statement, the bank said, “There has been considerable speculation and rumours linking the appointment of the new MD & CEO of the Bank, Mr R S Kumar, with asset quality challenges for the bank in the near future. We wish to reiterate that such speculation is baseless and unfounded and purely speculative in nature”.

As far as asset quality is concerned, the bank’s gross non-performing assets (NPAs) and net NPAs were 4.4 per cent and 1.3 per cent, respectively, at the end of the March quarter, with a provision coverage ratio of 70.4 per cent. And, most importantly, there was no reportable divergence, the bank said.

On Monday, shares of the bank tumbled 22 per cent amid speculation that Kumar, a veteran public sector banker, has been appointed as the MD & CEO of the bank to clean up the balance sheet.

“As the bank has been highlighting in its past commentaries, the bank is well provided and does not foresee any asset quality challenges," the lender said.

“Also as stated earlier, given the strong provision coverage, lower delinquency trends, and strong recovery visibility from the GNPA book, credit costs for FY23 are expected to be materially lower than FY22,” it added.

From a capital adequacy point of view, the bank is well capitalised, and post its tier-2 capital raise last month from United States International Development  Corporation, America’s development  institution, the capital adequacy ratio of the bank has increased to approx 17.8 per cent.

In an interview to Business Standard, Kumar said, “… I would like to tell investors that their perception with regard to the bank will see a change – it is a transition from one level to the next”.

Fitch expects RBI to raise interest rates to 5.9% by December-end

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In its update to Global Economic Outlook, Fitch said India's economy faces a worsening external environment, elevated commodity prices, and tighter global monetary policy.Fitch expects RBI to raise interest rates to 5.9% by December-end

Fitch Ratings on Tuesday said the Reserve Bank is likely to raise interest rates further to 5.9 per cent by December 2022, on deteriorating inflation outlook.

In its update to Global Economic Outlook, Fitch said India's economy faces a worsening external environment, elevated commodity prices, and tighter global monetary policy.

"Given the deteriorating outlook for inflation, we now expect the RBI to lift rates further to 5.9 per cent by December 2022 and to 6.15 per cent by the end of 2023 (vs. previous forecast of 5 per cent) and to be unchanged in 2024," Fitch said.

Last month in an unscheduled policy announcement, the Reserve Bank of India (RBI) raised rates by 40 basis points to 4.4 per cent, and subsequently to 4.9 per cent last week.

The RBI has forecast inflation to be 6.7 per cent by the end of current fiscal. The retail inflation for May came in at 7.04 per cent.

"Inflation has risen to an eight-year high and broadens across more CPI categories, posing a severe challenge to consumers. In the past three months, food inflation has increased by an average of 7.3 per cent year-on-year, while healthcare bills are rising at a similar pace," Fitch said.

According to Fitch, the April-June quarter growth is likely to improve on a rebound in consumption as COVID-19 cases subsided towards end-March.

"GDP grew by 4.1 per cent year-on-year in 1Q22 (January-March) compared to our March forecast of 4.8 per cent. We now expect the economy to grow by 7.8 per cent this year (2022-2023), revised down from our previous forecast of 8.5 per cent," Fitch said.

Fitch had last week upped outlook on India's sovereign rating to 'stable' from 'negative' after two years citing diminishing downside risks to medium-term growth on rapid economic recovery. The rating was kept unchanged at 'BBB-'.

The Outlook revision reflects our view that downside risks to medium-term growth have diminished due to India's rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock," it said.

The Indian economy grew 8.7 per cent in the last fiscal and RBI expects growth to be 7.2 per cent this fiscal.

Fitch said consumer spending sustaining the economy in 2022 given the potential for catch-up, as an easing in restrictions allows for greater spending on sectors such as retail, hotels and transport. Sectors of the economy that require greater face-to-face contact continue to lag behind others.

At WTO MC12, India bats for test and treat strategy under TRIPS waiver

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WTO's draft agreement doesn't include temporary waiver

G-33 differs from India's stance on export restrictions on food items

Amid opposition from rich nations, India has called for inclusion of ‘therapeutics and diagnostics’ — testing and treatment of a disease — as part of the temporary patent waiver agreement that can pave the way for the future need to tackle any crisis.

Twenty months ago, India and South Africa had urged the World Trade Organisation (WTO) member nations to agree to temporarily waive some sections of Trade-Related Aspects of Intellectual Property Rights (TRIPS) to ramp up production of vaccines, therapeutics, and diagnostics to combat the Covid-19 pandemic. The draft agreement, however, falls short of the original proposal and includes only vaccines.

At the 12th ministerial conference at Geneva, Commerce and Industry Minister Piyush Goyal said there was a need to redouble efforts and commence negotiations on therapeutics and diagnostics, since the pandemic was far from over, particularly for the developing and least-developed countries. Besides, it is too late in the day if only vaccines are included as the pandemic has run its initial course, he said.

“While vaccines were for preventive need, we need to ramp up manufacture of therapeutics and diagnostics to achieve a comprehensive test and treat strategy or workable waiver or let’s say an enhanced, compulsory licensing, as we say, can deliver in some measure what it was set out to achieve. Vaccines are no longer in scarcity and affordable stocks available across the world,” Goyal said at the thematic session on ‘Response to Pandemic’.

ALSO READ: WTO MC12: Piyush Goyal backs people-first approach to world trade

“In the course of my discussions, it has been indicated that many countries do not favour supporting what has been asked. Well, if it’s only vaccines that we are looking at providing, I think it's too late in the day for that,” the minister said, adding that it was unfortunate that the profits of the pharmaceutical behemoths prevail over global growth.

India and South Africa and 63 co-sponsors had initially made the TRIPS waiver proposal to help middle- and low-income nations get access to Covid-19 vaccines and drugs. However, the discussions reached a deadlock in the TRIPS Council — a body responsible for monitoring the operation of TRIPS agreement.

The minister said the draft text from these discussions did not reflect what India as a co-sponsor of the waiver proposal had envisaged. The commencement of text-based negotiations allowed the larger membership to engage in discussions on the texts. “I was really hopeful that the remaining concerns with this text would have been resolved and reconciled. For India, a consensus-based outcome is of paramount importance,” he said.

Goyal also said India had made several compromises to enable submission of a ‘clean’ document on the “Response to Pandemic” at the ministerial.

The compromises include the TRIPS automaticity clause, which was not accepted, extensive dilution of the language on intellectual property, and tech transfer, among others. “I hope that the flexibility that we have shown will pave the way for its acceptance and be replicated in other tracks for a successful MC-12,” he said.

Outcome on WTO’s response to the pandemic, which includes the TRIPS Waiver proposal, is one of the priority items for MC12.

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