The Hindu : G-21 taught us a lesson: Prodi

Online edition of India's National Newspaper
Sunday, Nov 30, 2003

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National

G-21 taught us a lesson: Prodi

By Sushma Ramachandran

Photo: Anu Pushkarna

The president of the European Commission, Prof. Romano Prodi, in New Delhi on Saturday.

New Delhi Nov. 29. The European Union today conceded that the formation of the Group of 21 coalition at the Cancun Ministerial Conference of the World Trade Organisation forced it to rework its strategy for multilateral trade negotiations. According to the European Commission President, Romano Prodi, "you — [India and other developing countries] — taught us a lesson. This was that there is a common voice which has to be heard," he said.

When asked he said that for the first time there was a common voice and it reflected a changed global political reality. While stressing his disappointment with the failure of Cancun talks, Mr. Prodi said the world had changed and the European Union had to take account of the new reality. "When 21 countries with differing interests could join hands, they have to be listened to especially as they account for half the world's population."

As a result, he said the European Union decided not to push the Singapore issues and some other issues. Welcoming the new strategic alliance, Mr. Prodi said: " I was sorry for the break-up of talks but was not sorry for the dialogue between Brazil, India and China (in the coalition)."

At the same time, he said the E.U. did not have any deadline for cutting back on farm subsidies though it was moving in that direction. He said that subsidies being given in the United Kingdom were to farmers and thus not trade-distorting while the French subsidies were on produce and, therefore, damaging to trade. The shift to the British system had begun but it had to be a long-term process. "Agriculture is protected, I cannot say it is not, but we are going in the same direction [of reducing subsidies]" he said.

Mr. Prodi, who was speaking to presspersons on the sidelines of a meeting organised by the Federation of Indian Chambers of Commerce and Industry, stressed the need for restarting multilateral trade negotiations at the WTO in Geneva. He looked forward to both sides learning lessons from Cancun and holding talks again at the General Council meeting "in a cordial manner."

On concerns over outsourcing of business processes to India, he said: "We must live with it." It was part of the new trade in goods and services which had to be dealt with by the European Union.

Earlier in a speech on "E.U.-India relations in a changing global matrix," he said that despite all differences in size and structure between South Asia and Europe, the European experience could offer an example. "We decided to overcome our differences by sharing the sources of our prosperity first through coal and steel, then by progressively abolishing all trade barriers. The benefits of this process took away any reason for conflict," he said.

He said that if the achievements of South Asia's regional integration had been less impressive so far, alternative routes could be considered to reach the same goals. If the trade creation effects in the region were relatively limited, a common approach to the infrastructural and energy challenges faced by these countries could possibly provide a new impetus to the SAARC to reach the ultimate goal of peace and stability.

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