New Delhi: India has cautiously welcomed the revised draft modalities texts on agriculture and industrial goods released last week at the World Trade Organisation’s headquarters in Geneva to take forward the Doha Development Round of negotiations.
Observing that New Delhi’s final view on the two texts would be possible only after consultations with other ministries, domestic stakeholders, and India’s partner countries, commerce and industry minister Kamal Nath, however, said the revised texts can form the basis for constructive engagement and negotiation in the coming weeks.
He also pointed out that there are around 170 unresolved issues in the agriculture text alone, adding that “there are admittedly a number of areas where there are strong differences of opinion.” “Significant and effective reduction of trade distorting farm 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,” he said.
Stressing that India is committed to concluding the Doha Round quickly, the minister said, “Now is the time for progress in other areas of interest to the WTO membership, like Rules and Services. There must be simultaneous progress on all fronts if we are to clinch a deal by 2008-end.” India is seeking more market access in services, particularly in outsourcing and movement of natural persons and service suppliers.
On the Special Safeguard Mechanism (which helps safeguard food security of poor and developing countries and the livelihoods their farmers from import surges or import price falls), the minister said some of the proposals in the new text would render the SSM useless.
On the revised Nama text, Nath expressed surprise at the removal of certain flexibilities, which he said was important for developing countries, including India, to protect their infant industries, small-scale industries and vulnerable sectors.
India also threatened that it would not support any agreement in the multilateral talks which allows ‘zeroing’, a US-backed rule allowing imposition of higher anti-dumping duties. India opposed a move by rich countries to disallow subsidies to poor fishing communities using small motorboats on the pretext that it would result in environmental damage. “This is an issue that critically impinges upon the livelihood of millions of poor fisherfolk in India and other countries,” he added.
