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Rediff.com  » Business » India to unveil farm trade agenda for WTO

India to unveil farm trade agenda for WTO

By P Vaidyanathan Iyer & Sidhartha in New Delhi
August 20, 2003 09:03 IST
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India is likely to unveil a counter strategy on agricultural negotiations at the World Trade Organisation with key developing countries, including the Cairns group, in Geneva on Wednesday.

Official sources told Business Standard that the contours of the proposal were almost ready and the strategy was expected to be finalised soon. The development comes just a week after the US-EU joint proposal on agriculture.

The Permanent Mission of India in Geneva was actively engaged in consultations with other key players in the agricultural arena. SN Menon, additional secretary in the commerce ministry, joined the delegation earlier this week to thrash out a package.

Meanwhile, a group of ministers headed by Finance Minister Jaswant Singh on Tuesday proposed that India should press for greater market access and reduction of subsidies by developed countries.

India would also push for special safeguard measures for third world countries and lower duty reduction commitments on special products.

While the broad parameters for negotiations would be firmed up by the Cabinet committee on WTO, based on the GoM recommendations, the nitty gritties of India's strategy would be left to the commerce ministry.

Senior government officials said India's position on bound rates and duties would be disclosed later.

Commerce ministry officials said that the US-EU joint proposal on agriculture was not in India's interest.

"We view it as a bilateral agreement aimed at pushing the interest of the two sides," an official said. India was working out a strategy to counter last week's joint proposal.

A large number of WTO members, including developed countries like Japan, feel the tariff reduction formula will affect products like rice, which are of interest to Japan and Korea.

The Cairns Group, comprising Brazil, South Africa, Australia and New Zealand, among others, have also opposed the proposal as it did not aim at reduction of subsidies.

Indian officials said India is trying to sensitise developing countries about effects that the proposal will have in blocking market access, due to high levels of subsidies, and at the same time will open up the markets for developed countries.

"Regardless of whichever camp a country is in, it is going to be affected by the US-EU deal," an official said.

The new US-EU proposal comes after the Harbinson draft prepared by the WTO that provides a hybrid tariff reduction model factoring in a formula-driven approach for some products, as pushed by the US for steeper tariff reductions, and the Uruguay Round modalities, to satisfy EU's demands for lower duty reductions.
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P Vaidyanathan Iyer & Sidhartha in New Delhi
 

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