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India softens stand on farm tariffs
BS Economy Bureau in New Delhi
 
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May 05, 2005 12:15 IST

Remaining firm on the issue of developed countries fixing their tariff lines on an ad-valorem basis, Commerce and Industry Minister Kamal Nath on Wednesday indicated that India was willing to co-operate in agriculture if the developed countries provided market access in the non-agriculture sector.

Nath told the G-10 members comprising developed countries in Paris that Indian cooperation on agriculture was possible if they co-operated on non-agriculture market access, and services. The G-10 meeting was attended by Japan, Switzerland, Norway, Iceland, Israel, South Korea and Taiwan.

Later, at a meeting with G-20 members, comprising the developing bloc, Nath, however, said that there was an urgent need for developed countries to fix their tariff lines on an ad-valorem basis.

The issue of converting specific duties to their ad-valorem equivalents had stalled the negotiations on agriculture so far, according to an official press release. Nath added binding tariffs on the ad-valorem basis was important for the draft to be ready by July, for the next round of talks.

"There is also the question of equity. We cannot have developed countries charging duty rates on same products, which are five or ten times the rates of tariffs in the developing countries," Nath said.

The G-20 meet was attended by Argentina, Brazil, China, Chile, Mexico, Pakistan and South Africa.

Nath, participating in the Organisation for Economic Co-operation and Development meet in Paris also said the Doha negotiations at the World Trade Organisation should outline a development agenda before the next ministerial in Hong Kong in December 2005.

"Doha is primarily a development round and the talks should take stock of all development issues among various countries," he said.

He added that developing countries should be ambitious while negotiating terms.

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