‘Development crucial to mini meet success’

NEW DELHI: India has emphasised that the development dimension of the on-going Doha round of the World Trade Organisation (WTO) has to be addressed if global trade negotiations are to succeed.

The warning comes just a day ahead of the crucial WTO mini-ministerial in Geneva where more than 40 trade ministers would meet to work out a deal on liberalising trade in agriculture and industrial goods.

In a letter addressed to trade ministers of all member countries of the WTO on Wednesday, commerce minister Kamal Nath pointed out that the mini-ministerial meeting would provide an opportunity to address the development issue frontally and substantially.

India’s letter is of significance especially in light of the fact that the draft modalities text on agriculture and non-agriculture market access (NAMA) circulated by the WTO last week was not to the liking of a number of developing countries.

Many, including India, feel that the portions on the tariff reduction formula for industrial goods and ear-marking of special products in agriculture (products which would not have to undertake reduction commitments) in the draft are unfavourable for developing members of the WTO.

“There is a growing disquiet that the contours of the development dimension of this Round are not yet apparent. Development cannot mean displacement of subsistence farmers and e-industrialisation of developing economies,” he said while releasing the letter in London.

Members must recognise that while the sensitivities of developed countries in matters of trade liberalisation involve commercial issues, for developing countries such sensitivities involve the survival and well-being of their poorest citizens, the bulk of whom depend on agriculture for their livelihoods.

“Livelihood security and subsistence of the poor are not negotiable issues,” the minister said. He called for substantial reductions in trade-distorting subsidies in agriculture provided by developed countries and said that the overall tariff reduction commitments by developing countries should at most be two-thirds of those of developed countries.

Special products and an effective special safeguard mechanism (SSM) instrument are also of key interest as they can provide a modicum of protection to farmers in developing countries, the minister added.

In the area of industrial tariffs, Kamal Nath said that developing countries should not be prevented from developing their infant industrial sectors and an over-ambitious programme of tariff liberalisation may actually lead to de-industrialisation.

The meeting will be important as its results would determine how the negotiations are going to progress in the remaining part of the year.

According to the fresh timelines set for concluding the different areas of the negotiations, the modalities for negotiations for agriculture and NAMA should be in place by June-end while fresh offers in services have to be submitted by July-end.

Modalities for negotiations on rules also have to be finalised by July-end. The negotiations are scheduled to be completed by the end of 2006.