Panel to consider India's stand on fresh WTO proposals

The Cabinet Committee on the World Trade Organization (WTO) will consider India’s response to fresh proposals of the WTO for a global trade deal on opening markets, an official said. The commerce ministry will soon approach the committee for receiving a negotiating mandate.

While officials in the ministry insist there are still wide differences, experts feel India should push for implementing some key proposals put up by the negotiating groups, particularly on agriculture.

According to the new text, a country can impose additional duty of up to 25 per cent if it finds that its imports have surged between 10 per cent and 15 per cent, according to the negotiating text on agriculture.

The minimum trigger agreed upon by the US during the July Ministerial Meeting was 40 per cent, which was not acceptable to India, leading to the collapse of the nine-day talks in Geneva.

“The proposals on (the) Special Safeguard Mechanism (providing the trigger option to protect farmers against cheap imports) should be acceptable to India,” said Biswajit Dhar, head of the Centre for WTO Studies at the Indian Institute of Foreign Trade.

While he was doubtful whether the proposal would be acceptable to the US, Dhar said, “India should press for acceptance of the proposals in the new negotiating text.”

As regards the new proposals on industrial products, Dhar said there was not much change from the previous July text.

WTO chief Pascal Lamy said with these revised texts “we are closer to our goal of clinching modalities in agriculture and industry, a stepping stone towards the conclusion of the Doha Round”.

Lamy, who is seeking re-election as WTO chief, however, said in a statement, “There is a long way to go before the Round is concluded.”

Lamy said the step would send a signal that “all WTO members stand united to face the challenges of the current economic crisis. It will confirm that they reject unilateral beggar-thy-neighbour solutions”.

The Federation of Indian Chambers of Commerce and Industry said the new formula for market opening includes zero-for-zero duty in specific sectors. “This is not acceptable to Indian industry,” a senior chamber official said.

While releasing the revised papers providing a formula for cutting industrial tariffs and trade-distorting agricultural subsidies, the WTO said these “would be a focus of crucial talks if a representative group of ministers return to Geneva later in December”. Lamy is considering calling a meeting of key trade ministers later this month.

The July talks failed mainly on the issue of the level of protection to farmers. While India wanted developing countries to be allowed to impose duties after imports surge 10 per cent, the US had insisted on a threshold of 40 per cent.