Indian negotiators to head back to Geneva

NEW DELHI: Indian trade negotiators are packing their bags all over again for Geneva, as the G-6 group of India, Brazil, the US, the EU, Australia and Japan plan to meet later this week to work towards a compromise formula to break the current deadlock at the World Trade Organization (WTO) negotiations.

Officials in the commerce & industry ministry told ET that a negotiating team would leave for Geneva later this week to resume negotiations on liberalisation of agriculture and industrial goods with their counterparts in G-6 countries.

Negotiations on Agriculture and Non-agriculture Market Access (NAMA) abruptly ended last week, with trade ministers failing to move towards an agreement on lowering farm subsidies and cutting tariffs on industrial goods.

WTO members then requested director general Pascal Lamy to step in and work out a compromise. Mr Lamy said that he would work closely with all members, especially G-6 countries, to finalise the modalities text for both agriculture and NAMA.

Modalities include the formula for reducing subsidies and tariffs and the special dispensation for developing countries. If negotiations move forward with the help of Mr Lamy, another mini-ministerial meeting may be arranged during the month-end, to finalise an agreement on modalities of the negotiations.

The talks got stuck in Geneva largely because of US refusal to agree to a farm subsidy cut of 75% as demanded by the G-20 and backed by the EU. The US, in its proposal, has offered to reduce subsidies by 54%.

The US accused the EU of not providing enough market access in agriculture. The EU has offered to cut tariffs by 50% as opposed to the US demand of 64%.

Developing countries, including India, are dissatisfied by the lack of movement in agriculture and the developed countries’ demand that they should provide increased market access in industrial products.