Union Commerce Minister Kamal Nath met US trade representative Susan Schwab in New York on Thursday evening. He said the meeting led to 'much more convergence' between the two countries than last year on the feisty issues relating to the World Trade Organisation negotiations.
"At this point of time, since we are comparing the meeting to last year's, obviously there is much more convergence. This really demonstrates the progress in the negotiations," Nath commented during a press briefing after his three-hour long meeting with Schwab at the Four Seasons hotel in New York.
Noting that the discussions covered all aspects of trade negotiations, Nath said that both India and the United States want to ensure that the prolonged WTO negotiations are completed as soon as possible.
"We looked at our divergences and our convergences and expressed our resolve to ensure that this round is completed as soon possible. We have this opportunity till end of June, by which time, if things have to move forward, they must happen," he said. Nath, however, did not elaborate on the convergences.
The minister arrived in New York on Wednesday to release his book 'India's Century' and to meet Schwab on Thursday in yet another bid to achieve a breakthrough on the issue of agriculture subsidies that has been at the core of WTO negotiations talks, since it started in Doha in 2001.
Schwab, who was also present during the press briefing, agreed with Nath, saying that she shared his objectives and his 'sense of urgency and momentum' in achieving a successful conclusion of the Doha Round as soon as possible.
"President George Bush is committed to do everything that we can to see a successful conclusion of this round this year. This is a development round and if you look at points of time where there really is a need for rounds that generate economic growth, economic development and alleviate poverty, we feel a sense of momentum and urgency and the need to move as expeditiously as possible," she said.
"As the minister said we had a good, constructive dialogue both about convergence and on areas where we differ and there certainly are some. But that is alright because we have sense of path forward. We are both working together and working with our other colleagues at WTO to see if we can make this happen both for the sake of the US' economy as well as the Indian economy and for the sake of the economies of our trading partners," she said.
"I am very pleased that we had the opportunity to get together and talk and it is always worth that investment of time and energy," Schwab said.
Admitting that obviously India's concerns are not new, the commerce minister said that discussions also focused on India's expectations in services and its expectations and its sensitivities.
"We did agree that we must head towards market access for both of us. We agreed that services are an important item for both countries and we also agreed that India has sensitivities. There is recognition of India's sensitivity in agriculture. But we have to discuss how these sensitivities have to be addressed," Nath said.
He also said that the discussion also explored as to how both the countries could play a role in the issues with other countries like the European Union, for example, or Africa or the LDCs. "We want to use our joint efforts in trying to iron out those differences," Nath said.
In response to a question Schwab said that this round is primarily, but not exclusively, about market access. "Subsidies are also an area where we have issues and we both agree that it has to be part of the negotiation. The key I think is to act in a way that will generate growth and development and to be respectful of each other's ambitions and sensitivities and try to nudge each other and our trading partners to go as far as we possibly can to get the maximum possible benefit for each other and the world," she said.
Nath said the US has said it will also want to move on subsidies and they will do what they can. "It is not something new; it has always been on the table." Schwab said the US wants the EU to move on subsidies.
In response to yet another question she said it helps to get together periodically to help crystallise those areas where India and US are really close together and have mutual interests. "We can work together to pursue our mutual interests, for example with third countries and those areas where we still have differences," she said.
"We know we have to figure out how to bridge them and to see there are ways that we can be working together to bridge very real differences," she said.
Nath added the classic example is the non-tariff barrier. 'We both can become victims of non-tariff barriers, not just India. We therefore looked at ways to address the issues relating to non-tariff barriers,' he said.
