India welcomes new world trade texts, but sees problems

India welcomes new world trade texts, but sees problems
Tue 12 Feb 2008, 12:30 GMT
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By Surojit Gupta

NEW DELHI (Reuters) - New negotiating texts could enable regional powers to push forward global trade talks in the coming weeks but a lot of hard work still lies ahead, Indian Trade Minister Kamal Nath said on Tuesday.

Last week, World Trade Organisation (WTO) mediators sought to advance long-running trade talks by issuing revised drafts for agriculture and industry.

The new texts did not make any changes to existing proposals for headline cuts in tariffs and subsidies but narrowed the gaps on a slew of technical issues.

In a statement, Nath welcomed the revised texts and said a final view would be possible only after consultations with various ministries, domestic stakeholders and India's partner countries.

But he said there were issues where "large divergences" remain in the search for a successful conclusion to the troubled Doha round of trade talks, launched in 2001.

"Significant and effective reduction of trade distorting subsidies of the developed countries is an issue on which there can be no compromise because they impact adversely upon the livelihood of millions of our poor farmers," Nath said.

"Indian agriculture cannot be expected to carry the burden and most definitely not in a development round."

Strong economic growth has given India clout on the global economic stage and it has emerged as a powerful voice for developing countries at the WTO.

Much of the work in the trade talks has turned on how both rich and poor countries can shield sensitive farm products from excessive imports, and how developing countries can protect fledgling industries from the full force of competition.

Nath said a significant amount of work still needed to be done in the area of special products.

"The livelihood of Indian farmers and the food security of the nation is of paramount importance and must be protected at all costs," he said.

The text on fisheries subsidies has to be radically revised to take into account the actual conditions under which small fisheries operate in the developing world, Nath added.

"This is an issue that critically impinges upon the livelihood of millions of poor fisherfolk in India and other countries," Nath said. "It cannot be left unaddressed."

Developing countries such as India want the United States to cut its trade-distorting farm subsidies and the European Union and other rich economies to open farm markets by cutting tariffs.

In return rich countries want developing countries to open markets by cutting industrial tariffs and liberalising services.