The fresh WTO proposals for industrial tariffs and agricultural subsidies drew guarded response from India on Friday. While terming the revised blueprints for a final deal?circulated by the chairs of agriculture and non-agricultural market access??not one of convergence?, it expressed concerns on the proposals on industrial tariffs. However, the government said the draft provided for a good basis for the negotiations to resume in September.
Commerce and industry minister Kamal Nath said the revised draft modalities was ?not a text of convergence? and added he had informed WTO director-general Pascal Lamy about his views. ?Of course, we have concerns on industrial tariffs. But talks are also about the entire package on agriculture and services. When negotiations start by September, we hope that the mandate of development of poor countries is addressed in the Doha Round. The text is a good basis for starting talks,? he added.
The minister said there were concerns of newly acceded members like China. ?China has contributed a lot (towards trade liberalisation) as concession to be a WTO member. Whatever these countries have offered should be taken into account by the developed nations and must be respected,? he said. China had raised objections to the proposals saying it was given just a two-year grace time period?instead of the 10-year grace period that was demanded?before it would have to cut industrial tariffs.
The talks were stalled in July 2006 but was revived in this February, but ended in a deadlock again last month as the group of four?the US, the EU, India and Brazil?failed to reach a consensus on the amount of cuts in tariffs and subsidies on farm and industrial products. India and other developing nations pitched for the US and EU to reduce their farm subsidies, while the developed countries wanted the developing nations to reduce import tariffs and open markets for their farm and industrial goods.
After the negotiations broke down at Potsdam in Germany, the mediators handling the talks on agriculture and industrial tariffs proposed the new formula, which asked the US to cut its farm subsidies to $13 billion-$16.4 billion. As a quid pro quo, developing countries like India, Brazil and China were to make increased cuts in industrial tariffs to help complete the Doha Round talks. The new draft, however, didn?t insist on new demands for opening up agricultural markets in the EU.