Developed nations should cut subsidies: India

NEW DELHI: India on Thursday asked the European Union to "tell its American friends" that an early global trade deal under the Doha Round of WTO negotiations is possible provided the developed nations cut subsidies to rich farmers.

"Tell your American friends that India will not negotiate on subsistence farming... I have told them (the US) that we will have a deal if they reduce subsidies even by a dollar. But there has been no response," Commerce and Industry Minister Kamal Nath said at the India-EU business summit.

Apex chambers, CII and FICCI, organised the business summit, ahead of the official India-EU Summit on Friday.

EU Trade Commissioner Peter Mandelson said Europe is "well aware of the growing weight on the other side of the table (developing countries) on Doha negotiations". Both sides have sensitivities to be respected as well as demands to be met in the Doha negotiations, he said.

"But we have to keep pushing for a successful Doha Round," Mandelson said.

India and the EU are negotiating an ambitious Free Trade Agreement aimed at opening markets to each other in the backdrop of tardy progress in achieving a multilateral deal.

While India along with Brazil is pressing hard for reduction in trade-distorting farm subsidies in the developed countries, Nath said "agriculture is not an issue with EU" for concluding an FTA which encompasses trade, services and investment.