labels: economy - general, world trade organisation, agriculture
WTO: Kamal Nath asks US to be flexible on agriculture subsidiesnews
10 February 2007
Mumbai: The US should offer to cut subsidies it provide to the agriculture sector as agreed to by the European Union so that negotiations on the Doha Round of world trade talks reach a fruitful conclusion.

The Doha Round of talks of the World Trade Organisation (WTO), which have been suspended since July last year, revived yesterday in Geneva.

"We welcome the EU offer of flexibility on agriculture and are looking forward to something from the US," commerce and industry minister Kamal Nath said after meeting with Greek finance and economy minister George Alogoskoufi.

The EU has agreed for a higher cut in its farm tariffs as desired by developing countries but the US is unwilling to reduce its trade distorting agriculture subsidies.

Nath said, while the talks have restarted despite the key players sticking to their positions, in the coming weeks developed countries should show greater flexibility on agriculture tariffs and subsidies.

"The official level talks have started and things have been put back on the table. In the next few weeks there should be much more on the table," he said.

Nath said the current round at WTO is a development round and "we have to see that it leads to greater trade flows from developing to developed countries in agriculture, industrial goods and services".

US commerce secretary Carlos Gutierrez, meanwhile, is expected to seek India's full cooperation in advancing the Doha Round of world trade talks, specifically efforts to liberalise trade in industrial and agricultural products during his visit to India next week.

He is also expected to push for higher US exports to India and hold talks with senior government officials, including Kamal Nath.

"My visit will focus on expanding our bilateral economic relationship and working to increase US exports to India. I look forward to discussing with India's government the opportunities our two nations face as we strengthen our relationship and expand upon our economic successes," Gutierrez said in a statement.

"American companies should be exporting more to India, and India should work with us to make sure American exporters and businesses are treated fairly," he said.

Gutierrez noted that India is increasingly becoming a vital and important partner on matters of security and trade and that the country will become a key player going forward in the next Doha Round of trade talks.

US exports to India had increased 25 per cent from Jan-Nov 2005 through Jan-Nov 2006. The US is by far India's largest trading partner with $29 billion in two-way trade in Jan-November 2006.


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WTO: Kamal Nath asks US to be flexible on agriculture subsidies