The Hindu Business Line : Domestic concerns addressed at WTO meet: Kamal Nath

THE Union Commerce and Industry Minister, Mr Kamal Nath, today said the decisions arrived at Hong Kong Ministerial of the World Trade Organisation on key issues such as agriculture and industrial tariffs would safeguard the domestic interests as they squarely and adequately addressed the abiding concerns voiced by domestic stakeholders.

Addressing a news conference here on the outcome of the recently-concluded Hong Kong Ministerial of the WTO , the Minister said the agreement reached on agriculture would help Indian farmers in giving them enough opportunities to export farm products, while permitting them to retain domestic support and exempting some products from tariff cuts.

"We have been able to secure an agreement that the WTO will not come in the way of domestic support given to farmers in developing countries like India," Mr Nath categorically asserted.

He noted that developed countries would need to eliminate their export subsidies on farm products by 2013 while reducing them considerably by 2010. This would help make Indian products competitive and increase India's exports in the international markets, he added.

To draw up list of special products: The Minister further said India would be able to draw up a list of 90 special products, which would be outside the tariff-reduction formula and enable Indian farmers to safeguard their crucial crops from global competition.

He said New Delhi would also have the option of increasing import duties on farm products if there is a drop in prices in the originating country of export to safeguard the livelihood concerns of domestic farmers.

Mr Nath said the Indian industry would also stand to benefit as developed countries resolved to reduce duties on products of interest to developing countries, which would not have to reciprocate by cutting duties proportionately.

"Before we went to Hong Kong, certain things were clear, that we would not reach modalities but we tried to build a structure and contours for the agreement on the Doha round," Mr Nath said adding that "I expect the modalities to be completed by June 2006".

In response to a query about the reported criticism of the CPI(M) to the Hong Kong Ministerial outcome, Mr Nath said India made substantial gains from the deal without compromising on its policy space.

Time sought for statement in Parliament: "Their apprehensions are absolutely misplaced and they need to examine the agreement in detail. I will soon hold a meeting with them," Mr Nath said, adding that he has sought time from the Lok Sabha Speaker and the Rajya Sabha Chairman to make a statement in Parliament about the WTO Hong Kong Ministerial.

He said in services, the policy space required for developing countries including India has been fully preserved.

A right mix has been scored between flexibility for developing countries and securing market access for areas of export interest to India like Mode 4 categories delinked from commercial presence and Mode 1.

Further guidance on commitments at extant levels of Modes 1 and 2 (cross-border supply which includes business process outsourcing or BPO and e-enabled services) have been secured.