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Accommodate concerns of poor nations: Kamal Nath

"Opening up markets must take into account social and economic realities"

Geneva: As the World Trade Organisation talks collapsed here on Saturday, Commerce Minister Kamal Nath said the most substantial results must be achieved in the areas where the greatest distortions lie, in particular trade distorting subsidies that displace developing country products, threaten the livelihoods of hundreds of millions of poor farmers and which have been prohibited for industrial goods for several decades.

``Market access will be an important component of a successful round but market opening in developing countries must take into account their social and economic realities,'' he said in a statement.

He outlined a six-point minimum agenda for any future talks, including reduction in trade distorting subsidies and agriculture tariffs in particular in products of special interest to developing countries.

He said the talks should aim at substantial reduction in industrial tariffs based on the principle of less than full reciprocity in reduction commitments, meaningful special and differential treatment provisions for developing countries.

Future talks should finalise modalities for duty-free and quota-free access for least developed countries and accommodate concerns of small and vulnerable economies like the cotton farmers of Africa.

U.S. Trade Representative Susan Shwab was, however, optimistic that talks could move forward in the coming weeks.

``While we have clearly reached something of an impasse, does that mean the round is dead? The answer is no, we do not believe so,'' she said.

``The U.S. is prepared to engage in this in the most constructive manner possible,'' she added.

WTO Director General Pascal Lamy said the Trade Ministers were refusing to show any flexibility and engage in negotiations to cut farm subsidies and tariffs on industrial goods.

Brazil and India — who lead the powerful G-20 block of developing countries — form part of G-6 along with the EU, US, Japan and Australia. A compromise among the six players is regarded as key to ending the nearly five-year-old deadlock at the 149-member WTO because of adamant posturing by the developed countries on cutting farm subsidies that were denying market access to developing countries.

Despite no headway so far, there was some optimism that an agreement could be reached by the end of July as key players are keen to arrive at a consensus so that talks move forward for conclusion by year-end. There could be yet another Mini-Ministerial in a couple of weeks. — PTI

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