Russian President Vladimir Putin called Sunday for creating an alternative to the World Trade Organisation (WTO) that would favour developing economies and suggested giving a greater role to regional currencies. Speaking at an economic forum in Russia's second-largest city of St. Petersburg, Putin lamented that today's international economic organisations "look archaic, undemocratic and awkward" by protecting the interests mainly of developed economies.
"Today protectionism which the WTO is intended to fight oftentimes comes from developed economies that set up this structure," Putin told the conference.
"In order to stimulate trade and investment it is worth thinking about creating a regional Eurasian institute on free trade that could take advantage of the positive experience of WTO," he said. He did not elaborate.
Putin said the stalled Doha round of global trade talks were a sign of the problems with the organisation: "Old methods of decision-making at times don't work." The talks have stumbled repeatedly since their inception six years ago in Qatar's capital, largely because of wrangling between rich and poor countries over eliminating barriers to farm trade.
Putin also said that, currently, global financial markets evolved around "one or two" currencies - an apparent reference to the euro and the dollar - and their fluctuations often have highly negative effects on many countries' economies and financial reserves.
"There can be only one answer to this challenge - the creation of several world currencies, several financial centers," he said. Putin suggested Russia could become one of them.
Russia remains the only major economy outside the WTO, the Geneva-based 150-member group, which sets global trade rules.
To join, Russia still needs to reach agreement with its tiny ex-Soviet neighbour Georgia, which protests Russia's strong ties with its two breakaway provinces. Russia also is in ongoing WTO talks with the European Union. Although the EU formally backs Russia's WTO membership, issues including foreign investors' access to Russia's vast energy sector has complicated Moscow's WTO application. Russian officials are using the two-day forum to court international capital and talk up the resurgent country, combining ambitious economic projections with promises of an open investment climate.
Meanwhile, at a time when Indian exporters are facing pressure due to rise in rupee value and lobbying with the government increased incentives, the World Trade Organisation (WTO) has asked India to have a relook at the duty neutralisation sops given to the exporting community. The WTO, while carrying out the Trade Policy Review of India, found that the country's export regime was highly complex and needs reforms.
"India's export regime remained highly complex, partly as a consequence of various measures to neutralise duties levied on imported inputs used in exports; export processing zones and special economic zones also offer tax holidays to investors," the WTO commented in the review.
It asked Indian government to consider reducing duties across the board rather than refunding to exporters through complex schemes.
A delegation of exporters met Commerce Secretary G K Pillai who informed them that discussions would be initiated with the finance ministry and Reserve Bank of India for enhancing the duty neutralisation rates.
"Today protectionism which the WTO is intended to fight oftentimes comes from developed economies that set up this structure," Putin told the conference."In order to stimulate trade and investment it is worth thinking about creating a regional Eurasian institute on free trade that could take advantage of the positive experience of WTO," he said. He did not elaborate.
Putin said the stalled Doha round of global trade talks were a sign of the problems with the organisation: "Old methods of decision-making at times don't work." The talks have stumbled repeatedly since their inception six years ago in Qatar's capital, largely because of wrangling between rich and poor countries over eliminating barriers to farm trade.
Putin also said that, currently, global financial markets evolved around "one or two" currencies - an apparent reference to the euro and the dollar - and their fluctuations often have highly negative effects on many countries' economies and financial reserves.
"There can be only one answer to this challenge - the creation of several world currencies, several financial centers," he said. Putin suggested Russia could become one of them.
Russia remains the only major economy outside the WTO, the Geneva-based 150-member group, which sets global trade rules.
To join, Russia still needs to reach agreement with its tiny ex-Soviet neighbour Georgia, which protests Russia's strong ties with its two breakaway provinces. Russia also is in ongoing WTO talks with the European Union. Although the EU formally backs Russia's WTO membership, issues including foreign investors' access to Russia's vast energy sector has complicated Moscow's WTO application. Russian officials are using the two-day forum to court international capital and talk up the resurgent country, combining ambitious economic projections with promises of an open investment climate.
Meanwhile, at a time when Indian exporters are facing pressure due to rise in rupee value and lobbying with the government increased incentives, the World Trade Organisation (WTO) has asked India to have a relook at the duty neutralisation sops given to the exporting community. The WTO, while carrying out the Trade Policy Review of India, found that the country's export regime was highly complex and needs reforms.
"India's export regime remained highly complex, partly as a consequence of various measures to neutralise duties levied on imported inputs used in exports; export processing zones and special economic zones also offer tax holidays to investors," the WTO commented in the review.
It asked Indian government to consider reducing duties across the board rather than refunding to exporters through complex schemes.
A delegation of exporters met Commerce Secretary G K Pillai who informed them that discussions would be initiated with the finance ministry and Reserve Bank of India for enhancing the duty neutralisation rates.
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VladimirPutin
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