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Sunday, Feb 10, 2008
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India studying fresh WTO proposals

Special Correspondent

Revised draft for U.S. cutting farm subsidy by $13 billion to $16.4 billion
Draft on industrial goods failed to follow Doha mandate: FICCI

NEW DELHI: India is studying the fine print of the fresh WTO proposals on reduction in farm subsidies and industrial tariffs, the two most controversial issues that have been stalling a consensus in the Doha Round of negotiations.

Its trade negotiators are still “studying” the exhaustive draft and are likely to comment on Monday.

Released in Geneva on Friday, the revised draft on agriculture has proposed that the U.S. cut farm subsidy by $13 billion to $16.4 billion and most of the developing countries are busy scrutinising the details in the document to infer whether the fresh proposals actually boil down to any meaningful reductions by the developed countries such as the U.S.

Earlier this week, Commerce and Industry Minister Kamal Nath had stated that the Doha talks were at a “delicate” stage and could move away from convergence in case the concerns of the developing countries on livelihood and marginal farmers were not addressed.

On the other hand, U.S. officials have stressed that they would like to see the market access issue equally addressed along with the cut in farm subsidies at the core of any global trade deal.

Meanwhile, in a statement, the apex chamber FICCI has pointed out that the draft text on industrial goods had “failed to follow the Doha mandate of less than full reciprocity in tariff reduction.”

The tariff reduction formula, as proposed in the draft, would result in greater obligations on India and other developing countries as compared to developed countries like the U.S. and the European Union.

“The Doha mandate had categorically specified that tariff reduction commitment would be lower for the developing countries,” said FICCI Secretary-General Amit Mitra.

On the farm sector, the chamber said the fresh draft could be a starting point for working out detailed modalities.

An important issue in agriculture, it said, would be whether the food security concerns were addressed and greater discipline was observed by the rich nations on the distribution of subsidy.

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