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'A new WTO round will be useful'

On the second day of his three-day visit to India, United States Trade Representative Robert Zoellick fielded questions from industrialists and the media. Excerpts.

Is it true that the rules are being set by the US and anyone who does not follow them gets left out?

We represent 20-25per cent of the world's economy. In fact, most countries around the world want to trade with the US. If countries are unable to proceed with trade liberalisation, we will proceed with those that are. It's a choice other countries have to make. People who fear globalisation should look at the alternatives -- protectionism, war, authoritarian regimes -- which aren't too high in my book.

If India remains adamant, what is the downside of Indo-US relations?

I expect we are going to have constructive relations and my point is to suggest that there is more opportunity for India to engage us in a certain way. I see a positive future for India and I hope we can make it even more positive.

Implementation issues are of concern to India and others...

I hear this issue the most from India. Others have a slightly different attitude. The US and others agreed to adjust rules for TRIMs to give a longer period of time to implement. There is a very large list that the US, the EU, Canada and Japan have said they are willing to work on and take some steps. As we work through, we have to distinguish between reasonable problems and requests for renegotiations. A new round is useful because the number of items on the list will not be acted on unless you have broad negotiations.

But the larger point is that there is a new conventional wisdom about the fact that the trade round didn't help the developing countries. If you look at the statistics, US exports to India have been static for the last three or four years while India's exports to the United States have doubled since the Uruguay Round.

For launching a round at Doha a decision should have been taken in July so that preparations work can take place. Now it's August, what is the scenario. Do you anticipate that a new round will be launched?

I think it is more likely than not that a lot of work is still to be done. What has started to transpire over the last couple of months is that more officials in the capitals have started to get engaged with the issues and that is important because the ambassadors that represent these countries in Geneva at the WTO obviously follow instructions from the capital.

How do you see trade and environment in view of the US stand on the Kyoto protocol?

President Bush has been very straight forward and outspoken about the fact that some people are raising the issue of labour and environmental standards in a way that could be viewed as some form of protection and so we are particularly alert to any danger that these items can be turned against the developing world. On the issue of environment, the United States and India, have a rather shared idea.

Why isn't the US dissuading the EU and Japan from raising the investment and competition issues since Doha could become another Seattle?

No. In fact, if they have views on them, they should talk. We want to try and deal with these issues and arrive at a general consensus.

The US finds itself in somewhat of a broker's role where we are amenable to a number of different results and the most important thing to do is to talk to each other directly and express concerns.

Does India's stand on the new round continue to be very adamant?

That question is best addressed to Indian ministers. I have been pleased with the discussions so far. In Seattle, India participated and its approach was to somewhat wait until the end and that is a viable approach. But India can play a more effective role if it joins the negotiations soon.

In the absence of a new round, are you willing to talk on issues that have not been solved so far like textiles and agriculture?

Let's take agriculture. Indian officials have said that they would like to proceed with negotiations on agriculture, which is part of the built-in agenda along with services. I wish I could.

If you want to get further liberalisation on agriculture, you have to bring other countries to the table.

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