The Hindu : Business : Lamy wants India to budge on WTO issues

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Saturday, Jan 20, 2007
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Lamy wants India to budge on WTO issues

Special Correspondent

Meets PM in an attempt to resume Doha Round

U.S. and EU have started testing new positions India has offensive interest in sugar, cotton and rice

PHOTO: PTI

WTO SEEKS INDIA'S HELP: Director-General of World Trade Organisation Pascal Lamy with Prime Minister Manmohan Singh in New Delhi on Friday. Something is cooking in the U.S. and the EU but it is not at the point of being served. It needs Indian spices, Mr. Lamy said seeking concessions from India to restart the Doha Round of trade talks.

NEW DELHI: World Trade Organisation (WTO) Director General Pascal Lamy met Prime Minister Manmohan Singh on Friday and sought `concessions' from India to revive the stalled Doha Round of negotiations. During a 30-minute meeting, he also briefed the Prime Minister about the fresh efforts being made globally to restart the Doha Round. "I got the feeling that the WTO is very much on his radar,'' Mr. Lamy said.

The meeting comes days before 30 countries meet in Switzerland to examine the possibility of reviving the Doha Round. The last WTO meeting July last year had collapsed as several countries, including the U.S., remained stuck on their positions on agriculture subsidies.

Mr. Lamy wanted the major players at the WTO, including India and Brazil, to be more flexible during any future round of negotiations, official sources said.

— Photo: S. Subramanium

HOT AND SPICY: World Trade Organisation Director General Pascal Lamy (centre), with Union Commerce and Industry Minister Kamal Nath (left) and Union Agriculture Minister Sharad Pawar during a meeting in New Delhi on Friday.

India and Brazil represent the developing countries, while the European Union (E.U.) and the U.S. are the main voices of the developed world. India is willing to make concessions in industrial goods but is committed to protecting its agriculture sector, especially the subsistence farmers.

The WTO DG met the Prime Minister as part of his interaction with world leaders to revive the deadlocked negotiations on further liberalising world trade. He has already met the U.S. President, the British Prime Minister and the German Chancellor. "My understanding is that the U.S. and the EU have started testing new positions. Something is cooking but it is not at the point of being served. It also needs Indian spices. Apart from India, Brazil, the U.S. and E.U., other chefs like Japan and Australia have to contribute to it,'' he said after meeting Commerce and Industry Minister Kamal Nath.

"I hope that process gets started and timeliness are set for completion of the round,'' Mr. Kamal Nath said. "India will do whatever it can to ensure that progress is made at the WTO but the content of the round is very important. We hope that it [the U.S.] would come forward and provide leadership.''

At a dinner organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday night, Mr. Lamy amplified his position on the impact of imports on Indian farmers. India, a net exporter of food, has offensive interests in sugar, cotton, rice and wheat and there is every possibility for it to tap new markets. Greater challenges lay in reforming the land system and improving the availability of credit, water and logistics.

"The exposure of agriculture to international trade is just a small part of the overall reform that needs to be undertaken to address the concerns of the farming community.''

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