India blames US for collapse of WTO talks

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Tuesday, July 25, 2006 (New Delhi):

India has blamed the US for the collapse of the WTO talks in Geneva and said there was no future course of action to push global trade negotiations.

"There is no roadmap as of now for trade talks. There are big gaps in mindsets. US wants access for its subsidised agricultural products in India and other developing countries without cutting its huge farm subsidies," said Commerce Minister Kamal Nath.

Nath said that the US has been virtually isolated in the trade talks, even as the European Union has supported the position of developing countries led by India and Brazil.

Asked whether the breakdown of talks could affect India's economic growth or trade, Nath replied in the negative.

"It will not have any impact on our economy or trade. Our GDP is growing at 8-9 per cent per year and it would continue. The country's exports are growing at a rapid rate," he said.

Commerce Ministry officials said any further movement in trade talks could now be possible only after US Congressional elections get over next year.

Farm products

Stating that the US was seeking access to Indian markets, Nath stressed the government is not ready to import subsidised products from that country as domestic farmers will not be able to compete in such a situation.

The Commerce Minister said the US wants India to reduce duties on farm products, which range between 40 per cent and 300 per cent, but New Delhi is not willing to do so.

Nath said India, while raising issues concerning the subsidy, was many times speaking for developing nations which have vulnerable economies.
"Sometimes, India raises its voice even on issues which do not affect it," he said.

Going back to the July one WTO meeting which also failed, the minister said he had walked out of it as there was no negotiating space.

Agricultural products

Disagreeing with a member that India's strategy was not right, he said it was only because of the "absolutely correct" strategy that the WTO meeting had failed.

He, however, said if the strategy needed some amendments, these will be considered in consultation with other developing countries.

On duties on agricultural products, Nath said discussions could be held on whether to increase these to ensure better protection of Indian farmers' interests.

Nath also said that the duties on Most Favoured Nation (MFN) products are adequate and don't need to be raised.