India wants WTO subsidy row resolved

Lamy will convene a ministerial meeting on July 21 to finalise the modalities in Doha agriculture and market opening for industrials.

The modalities in agriculture and non-agricultural market access (Nama) would suggest the tariff and subsidy reductions for farm products and the tariff cuts for industrial products that members would have to undertake as part of the Doha agreement.

At a closed-door meeting of trade envoys from about 30 countries, Lamy said he was going to convene the July 21 meeting on the assumption that there is "better than 50 per cent progress" in agriculture and Nama agenda.

He suggested that between now and July 19, when ministers are required to congregate in Geneva, members can bring about 90 per cent progress. "If we don't do it now, it would not happen," he said.

But there is widespread scepticism as many members say there is not even 50 per cent progress to warrant a ministerial meeting on July 21.

"It is wrong to say that there is more than 50 per cent progress in agriculture and Nama, and if anything, it is well below that figure," Argentina's senior trade negotiator, Nestor Edgardo Stancanelli, told Business Standard. "There should not be a ministerial meeting if it has to result in a failure," he said.

India's trade envoy, Ambassador Ujal Singh Bhatia, challenged the director-general to clarify the process and substantive issues, cautioning that within agriculture and Nama there are umpteen unresolved issues such as the number and treatment of special products, the thresholds for special safeguard mechanism, and overall trade-distorting domestic support.

But more than agriculture and Nama, Bhatia said, there were issues such as fishery subsidies, TRIPS and CBD (disclosure requirements for genetic material), and services which are vital for India in the Doha Round but not properly addressed till now.

"I can't be taking sides on TRIPS and CBD," Lamy told India, suggesting that India must sort out the issues on its own with key members.

In a sharp response, Bhatia said the director-general could not turn a blind eye when 100 members demanded an immediate decision to launch negotiations on TRIPS, CBD and Geographical Indicators.

India then challenged the director-general on the issue of fishery subsidies and rules that include a controversial provision to allow zeroing methodology, which inflates dumping margins.

In response, the director-general said "Gillermo [the chair for Doha Rules negotiations that includes fishery subsidies and anti-dumping rules] should engage" with members on this issue.

"This is clearly unacceptable," India's chief trade negotiator Rahul Kullar said immediately after the meeting, arguing that "the chair [for rules] has not convened any meeting until now on fishery subsidies."

He also said New Delhi cannot be asked to dump its concerns on TRIPS and CBD and fishery subsidies" just to address issues of interest to industrialised countries like the anti-concentration provision.

"If the director-general wants to accelerate the talks by convening meetings on anti-concentration in the Doha Nama agenda, why cannot he do the same in other areas?" he said.

However, industrialised members like the European Union have welcomed Lamy's decision to convene the July 21 meeting.