India rejects US offer to cut farm subsidies to $ 15 bn

GENEVA: India today rejected the US offer to cut its overall trade distorting farm subsidies to USD 15 billion a year, saying the move would not help as it still gives America enough headroom to increase the incentives.

Reacting strongly to the US offer being made at a press conference, India's Commerce Secretary Gopal Pillai told PTI, "India does not negotiate through the press. We negotiate in the green room at WTO meet."

US has a bound-limit of 48 billion dollars for farm subsidies. Dubbing the offer to bring it down to 15 billion dollars as inadequate, Pillai said that as per the current offer the applied subsidies would be USD 7 billion only and therefore it still gives enough room to increase farm support to USD 15 billion.

US Trade Represntative Susan Schwab today said that the US was prepared to bring down its trade distorting farm subsidies provided developing countries reciprocate with offers to open their markets for industrial and farm goods.
Addressing the press meet here, Schwab said, "I will be informing our green room colleagues that we are prepared to reduce our overall trade distorting domestic support to USD 15 billion. This is a major move taken in good faith."