The Hindu Business Line : `India can open its market, if rich nations cut subsidies'

IF major industrial countries reduce their domestic subsidies, India would reduce the market access barriers for them, said Mr Anwarul Hoda, Member of the Planning Commission and former Deputy Director General of the World Trade Organisation (WTO).

Addressing the Federation of Indian Chambers of Commerce- International Chamber of Commerce (Ficci-ICC) India joint International Conference on `Doha Development Agenda: Issues and Options' here on Wednesday, he said, "India cannot reduce its tariffs, unless it sees a reduction in domestic support in these countries."

Unless there is an assurance that there will be a real reduction and not mere shifting of domestic subsidies from one box to another in developed countries, domestic agriculture in India cannot be exposed to undue risks of import, he added.

Referring to the July 2004 Framework Agreement of WTO, Mr Hoda said that "while we applaud this framework, as it has set the ball rolling, we cannot afford to be complacent, since there is a lot that still needs to be done." He pointed out that the July Framework Agreement does not mention any numbers and does not specify the extent of reductions. So if the reduction in support in agriculture is only going to be a few percentage points , then not much is achieved, Mr Hoda said.

As international prices increase due to the reduction in subsidies, India will be benefited by its increased export of milk, skimmed milk and sugar. The country needs to stay deeply involved in the agriculture negotiations with the WTO, he said.

Mr Lars E. Anell, Chairman, ICC Commission on Trade & Investment Policy and Senior Advisor to the CEO, AB Volvo, Sweden, said that trade facilitation is the new item on the Doha Agenda and it will require focus on a number of practices and procedures.