The Hindu : Front Page : India, U.S. must bridge differences

Online edition of India's National Newspaper
Wednesday, Jul 30, 2008
ePaper | Mobile/PDA Version

Front Page

Front Page

India, U.S. must bridge differences

A face off will cost the WTO dearly, says EU

GENEVA: The EU on Tuesday said India and the U.S. need to compromise on their stands and bridge differences as a face off between them could cost the WTO negotiators a deal for opening the world market.

The compromise should come from "both sides who are involved," said EU Trade Commissioner Peter Mandelson on his arrival at the WTO headquarters. "The U.S. and India, and other developing countries too... if they do not stretch a bit further - if they do not demonstrate the will to compromise on this, then I am afraid the deal will go down, it is as appalling a prospect as that," he said as Ministers gathered for another round of intensive negotiations to find convergence on cutting industrial tariffs and farm subsidies for a Doha Round deal.

Deal-breaker

The WTO ministerial for a global trade agreement entered the second week here with the glimmer of hope of achieving a breakthrough in the talks. However, the chances of a deal were dimmed by the face off between the U.S., India and China on Monday over the contentious issue of the use of a safeguard mechanism to check import surges.

Developing countries like China and India are at loggerheads with food exporters like the U.S. over the issue of safeguards against food import surges, and differences on several other fundamental parts of a deal are also unresolved. Ministers were mulling over a compromise proposal on the safeguards as talks entered their ninth day - the longest WTO ministerial- level meeting, said trade officials.

Failure remained a real possibility.

"If people don't want this deal, there's no better deal coming along and we just have to consider, if this fails, what they will lose," said Mr. Mandelson.

The talks aimed at salvaging the seven-year-old Doha Round had been "a minute away" from being called off in the early hours of Tuesday over safeguards, said one trade official, but there was no sign of agreement over the new compromise.

"We cannot go on like this much longer," a diplomat said. But Indonesian Trade Minister Marie Elka Pangestu said: "Some of us are willing to stay as long as it takes. We will stay a few more days if it is necessary." The negotiations for a global deal trade began in 2001, shortly after the September 11 attacks, in the hope of boosting the world economy and helping poor countries.

`A high price'

China, the world's new export powerhouse, participating in a WTO negotiating round for the first time, accused the U.S. of making excessive demands on developing countries. "The crux of the current serious difficulties that have arisen in the Doha Round negotiations is that, having protected its own interests, the U.S. is asking a price as high as heaven," Xinhua news agency quoted Chinese Commerce Minister Chen Deming as saying on Monday.

A U.S. official said Washington could not agree to a deal that would reverse trade openness. Adding to concerns that compromises last week to rescue the talks could disintegrate, nine EU states - a third of the total and including EU heavyweight France - demanded better terms for the bloc on Monday. - Agencies

Printer friendly page
Send this article to Friends by E-Mail

Front Page