Lamy, Nath to hold talks on Doha issues

NEW DELHI: The World Trade Organisation (WTO) director general Pascal Lamy will visit India later this week to discuss ways to push the Doha round out of its current state of deadlock. Mr Lamy will hold talks with Indian commerce & industry minister Kamal Nath who is playing a key role in the negotiations.

Mr Lamy���s visit to India just a few days before the scheduled WTO mini-ministerial in Davos, Switzerland, indicates India���s growing stature in the multilateral negotiations. Speaking to ET, sources said that Mr Lamy will arrive in New Delhi on January 18 where he will meet Mr Nath and representatives from industry chambers. Mr Lamy will fly to Delhi from Bangalore where he has been invited to participate in the CII partnership summit.

The US, which was largely perceived as the member responsible for the talks reaching a stale-mate last July, has recently shown signs of flexibility. The US and the EU have recently made attempts to bridge their differences in the area of agriculture. The primary reason for the break-down was the refusal by the US to take on commitments for bringing down its agri subsidies.

While the G-20 alliance of developing countries and EU want the US to commit to reduce subsidies way below the present levels of $18 billion, the US wants to increase it to $22 billion.

EU trade commissioner Peter Mandelson and US trade representative Susan Schwab met last week to look at ways in which the dead-lock could be broken. It, however, remains to be seen whether the solution offered by the two developed members will be acceptable to developing countries like India and Brazil who have most vociferously campaigned against the US position on subsidies.

Mr Lamy, who has already held talks with Mr Mandelson and Ms Schwab, will now get a chance to listen to India���s views first hand. He is also expected to explain to India the line of thought in the opposite camp and how far the other side can be pushed.