The Hindu Business Line : Govt will safeguard national interests at WTO, assures Minister — Hong Kong draft gives enough 'negotiating space'

THE Government said on Tuesday that it would continue its "close engagement" with various stakeholders on World Trade Organisation (WTO) issues so that the best result could be obtained "fully protecting our farmers, industry as well as promoting our national interests and core concerns."

In a statement in the Lok Sabha on the Hong Kong (HK) Ministerial Conference of WTO member countries for which he led the Indian delegation, the Union Commerce and Industry Minister, Mr Kamal Nath, contended that the HK Ministerial Declaration finally agreed upon addresses "our core concerns and interests and provides us enough negotiating space for future work leading to modalities." The text has a positive development content, which would need to be built upon and fully realised in the next stage of negotiations. Stating that the principal elements of the text represent "significant gains" for India, the Minister said that in the case of agriculture and domestic support, developing countries such as India with no aggregate measurement of support (AMS) commitments would be exempt from any cuts on their support. As the green box providing for legitimate subsidies is being reviewed, programmes of developing country members, which have a minimal trade distorting effect, would be incorporated into the box, he said.

Mr Nath said developing countries such as India would continue to benefit from the provisions of Article 9.4 of the Agreement on Agriculture (they should be able to continue to provide marketing and transport subsidies for five years after elimination of export subsidies, — up to 2018, as export subsidies of developed countries would be abolished in 2013.)

On non-agricultural market access (NAMA), the Minister said the declaration also recognises the sensitivity attached to the unbound tariff lines by providing for "a non-linear mark-up before applying formula reductions." It is also agreed that participation in the sectoral initiatives to reduce or completely eliminate tariffs would be on a non-mandatory basis. In services, the declaration agreed to remove or substantially reduce the economic needs test. This has been one of the principal barriers to export of services from developing countries and also a long-standing demand of India. Revised offers on services would be submitted by July 31, 2006 and final draft schedules would be ready by October 31, 2006.

As soon as the Minister made the statement, Opposition members, including Prof. Vijaya Kumar Malhothra and supporting allies Mr Mohan Singh (SP), Mr Gurudas Dasgupta (CPI) and Mr Basudev Acharya (CPM) sought a discussion on the Hong Kong Ministerial outcome.

They argued that India's interests in the meeting had not been properly secured and safeguarded.

The Speaker, Mr Somnath Chatterjee, stated that they had not given a proper notice for such a discussion, but assured them of a discussion on the subject on a later date.