WTO meet to revive talks

In a fresh attempt to break the deadlock on the multilateral trade talks, some of the major World Trade Organisation (WTO) members are expected to meet later this month to work out ways to revive the negotiations.

Trade negotiators told Business Standard a two-day ministerial-level meeting with representatives from the US, EU, Brazil, South Africa, Mexico and Kenya (representing the African Union) has been proposed from April 30. India's participation in the meeting had also been sought, they added.

Interestingly, the meeting is scheduled just a few days after trade negotiators meet in Geneva on April 20 to arrive at a framework for agriculture negotiations by the end of July.

Geneva-based negotiators see very little possibility of an agreement by July, given the stiff positions adopted by the US and EU on reduction in farm subsidies -- both domestic support and export subsidies.

On the other hand, the G 20 alliance, comprising developing countries like India, Brazil, China and South Africa, are reluctant to concede to the blended tariff reduction formula proposed by the two largest exporters.

The G 20 membership holds that any tariff cut will not be agreed upon unless developed countries substantially reduce domestic support and agree to eliminate export subsidies in a time-bound manner.

With countries refusing to soften their positions, negotiators are now looking at the possibility of a very broad framework -- which will be closer to the Doha mandate and unlikely to provide any indications on subsidy and tariff reductions -- as an option to keep the negotiations going if the July deadline is also missed.

At the same time, countries like India are of the opinion that the WTO membership should agree to set the modalities for negotiating in services, in which it has key interest.

Moreover, a proposal to speed up work on the redressal of development concerns (implementation issues of the previous round) has also been submitted by India, the African Union and the Least developed Countries (LDC) group led by Bangladesh.