The Hindu Business Line : No revival of Doha round talks in sight: Kamal Nath

THE MINISTER for Commerce and Industry, Mr Kamal Nath, with the Secretary, Mr S.N. Menon, addressing a press conference in the Capital on Tuesday. — Ramesh Sharma

New Delhi , July 25

The Union Commerce and Industry Minister, Mr Kamal Nath, today discounted an immediate revival of the Doha Round trade talks under the WTO auspices, after the talks collapsed at the recent Geneva meeting.

But, Mr Nath maintained that India would continue consultations with all the like-minded developing countries to ensure the success of rule-based multilateral trading system.

`Gap in mindset'

Addressing a news conference here, to explain the deadlock in talks at the G-6 meeting comprising the US, the European Union, Brazil, India, Japan and Australia, Mr Nath conceded that "there is no roadmap as of now for the trade talks. The talks are suspended. The WTO talks have failed".

He blamed the "big gaps in mindsets" among trade majors vis-à-vis developing countries and singled out the US, which he said wants access for its subsidised agricultural products in India and other developing countries without cutting its huge farm subsidies. He said that while the US stands isolated on this issue, the EU has by and large backed the stand of India and other developing countries.

Echoing similar points earlier in the Lok Sabha during question hour, Mr Nath said, in response to a query, that the US seeks market entry for its subsidised farm goods into India on reduced farm tariffs. "We will not allow them to enter unless they stop their trade-distorting domestic support and export subsidies substantially."

No effect on India

He said that the domestic support to agriculture in the US amounts to $19.5 billion per annum. He, however, hastened to point out that the failure of talks would not strain trade relations with the US, as both the countries have trade policy forum to resolve all the bilateral differences.

Mr Nath contended that this Round is not about the perpetuation of the structural flaws in global trade in agriculture, not about developing counties opening their markets for developed countries for their subsidised agricultural products and not about negotiating livelihood security and subsistence of hundreds of millions of farmers. He said that there could be no compromise on the interests of farmers or infant industry.

Asked about the likely impact of the failure of the Geneva talks and the collapse of the Doha Round on India, Mr Nath said, "The breakdown of the talks is not going to adversely affect the Indian economy, which is growing at 8 to 9 per cent a year even without Doha Round." He said India's exports too have been registering higher growth.

More trade pacts

Mr Nath said that there would be more bilateral or regional trade agreements as Asia is in the midst of forging such arrangements. "Where India is concerned, we have entered into bilateral trade agreements and we will pursue them. I will be consulting with other developing members on what should be the future course of action," he said.