On July 21, trade ministers from nearly 50 countries will converge at Geneva to finalise proposals on agriculture and non-agricultural market access (Nama) which are part of the Doha Round of world trade talks. World Trade Organisation Director General Pascal Lamy tells Business Standard why the ministerial is crucial.
Excerpts:
The Indian industry feels Nama proposals on issues like sectorals (sectors with zero import duty) or anti-concentration (measures to ensure that protection measures a country is allowed are spread over various sectors) are not under the Hong Kong mandate or the July framework.
From the very beginning, use of flexiblities by developing countries has been linked to a cap on them. There was a cap on the number of lines and volume of trade. There are very, very few instances where India will have to use its flexibilities.
It can go for 5 per cent of tariff lines taking no cut or 10 per cent of tariff lines taking half the formula cut. India's sensitivities can be addressed within this range. Where exactly? I don't know.
Critics say developed countries have got what they wanted but developing countries have nothing to look forward in the latest proposals on farm and Nama?
What is on table for India includes import duty cuts on textiles, clothing, footwear, among others, in markets like the United States and the European Union. Moreover, the high level of trade-distorting subsidies will be reduced, as well as zeroing of export subsidies.
The timing of the mini-ministerial has also been criticised as it is felt there is a stalemate on key issues.
Before calling the ministerial, I called up all the ministers and announced the date three weeks ago. I have had no minister telling me that we shouldn't be having the mini-ministerial.
Every one agrees that by the end of 2008, the round should be concluded. I do not think there is prejudice involved in the final decision. There has to be a balance between offensive and defensive interests.
What if trade ministers do not find a way out in the scheduled ministerial?
There is no plan B. I am here to help nations find a solution.
The US will go for elections this year and there are doubts on how the talks will proceed in such a scenario. So isn't freezing talks an option. Negotiations can resume when there is a new president in US?
The US is in a position to negotiate. If we have a deal, they will have to decide if to take it to the Congress under the current president or the new one. The process is not different from many other countries.
What about negotiations on areas like services, rules and Trips?
On services, there will be a signaling conference this Thursday where negotiators will discuss various possibilities. On Trips, there are wide differences. What is not clear is where will the compromise take place. I am ready to help in this regard.
Do you see the Doha Round addressing the problem of rising prices of food commodities world wide?
We have to have more supply and the key is to invest in agriculture. For that to happen we need to ensure that international markets work. But markets have not worked because of distortions like high subsidies and tariffs in developed countries.
India has not been much affected because it has not been much involved in agriculture trade. It produces a great deal of food, which is very largely consumed at home, although that could change. Indian agriculture has had problems but they are only partly linked to trade.
