Mixed signs: on pandemics and protectionism

At a time when India is trying to impress the world that it is determined and willing and able to be a more reliable supply chain partner than China, which has been proved in recent times, External Affairs Minister S Jaishankar’s remarks Tuesdays are worth noting about globalization. The experience of the pandemic makes a case for ‘smaller’ supply chains with more ‘national’ capabilities, he said, before denouncing globalization ‘gurus’ for advocating open markets without acknowledging geopolitical motivations. He cited the example of India’s health care supply chain vulnerabilities being exposed after the onset of COVID-19, making it clear that his broader message was aimed at China, on which India is a major source of critical pharma and health care imports. was, and continues to be, with large trade deficits. For China, harnessing dwindling global sentiment, and the dangers of relying on limited, albeit highly efficient, supply chains, is a sensible move to gain resonance. Earlier this month, Australia’s special envoy to India Tony Abbott accused China of “weaponizing trade”, losing credibility and blocking trade flows. Mr Abbott, a former Australian prime minister who himself signed a free trade deal with China, is now pushing hard for a trade deal with India as a ‘clearly credible alternative’ to global supply chains , this is a commendable endorsement of the official. tact

However, Mr Jaishankar also called the idea that ‘other people … can operate in your economy on terms that are beneficial to them’ as ‘ridiculous’ and argued that the defensive about ‘protectionism’ There is no need to be. , Perhaps, he was addressing repeated discontent about some of India’s broad market access reluctance based on recent supply chain shocks in sectors ranging from semiconductors to commodities. But this broad-brush message against globalization is troublesome, especially when other cabinet members are taking pains to tell investors and potential FTA partners that the Atmanirbhar Bharat Abhiyan is not a protectionist platform. Such mixed signals could also upset counterparts and stakeholders negotiating similar deals with the UAE, Canada, the European Union and those involved in the revived India-US trade talks. It cannot be denied that the world is yet to find a fair global trade order through the WTO, or that urgent pandemic urgency needs to create some resilience to diversify supply and enhance domestic capabilities. . But protectionism is not the answer as India itself will argue with countries where it wants market access; and globalization In fact Even though India is benefiting from this through increased exports, one cannot pooh-pooh. Just because of the pandemic, the world will become no less interdependent because it is not possible to create everything for everyone. As former Chinese Prime Minister Wen Jiabao said, citing examples from China and Singapore: ‘…a nation that shuts its doors to the world is left behind.’ India would be well served if the focus is on grabbing the opportunities the world is throwing, while moaning for private conversations.