Groundnut Oil Easy, Sugar Subdued, Bullion Forked

The government is planning to set up two sub-groups that will handle trade negotiations in agriculture and services that begin next year. According to official sources, a meeting of the coordinating group of secretaries was held last week to discuss the modalities of future negotiations.

Following the meeting, the agriculture ministry is expected to set up a sub-group for negotiating on trade in agriculture, while the commerce ministry will form a sub-group for trade in services. The negotiations are expected to commence after January 1.

The commerce ministry will handle negotiations in the services sector since it cuts across various ministries. The movement of different types of personnel will also comprise a major part of the talks.

 

The coordinating group is chaired by the commerce secretary and includes the secretary to the Prime Minister's Office, finance, external affairs, agriculture and textile secretaries.

Meanwhile, senior government sources said various options to renew the failed Seattle talks were under consideration, including resumption of the ministerial talks.

Sources added that several countries were likely to object to the resumption of the ministerial discussions since it was a costly and time-consuming process. The failure of talks is being looked at as a temporary reprieve and discussions will be resumed in January.

The developed countries, including the US and the European Union, are looking at the possibility of holding a meeting in the spring of 2000 to decide on how to proceed. The options are expected to become clearer around the end of January.

Sources added that various examples of ministerial talks that were suspended existed.

For instance, the formal closing session of the Uruguay Round mid-term review in Montreal, on December 9, 1988, decided that the Trade Negotiations committee should meet again in the first week of April, 1989, at the senior officials level.

The results achieved in December in Montreal consisted of the decision to put the agenda for the second-half of the round "on hold" until April. Breakthrough was achieved in Geneva in April, 1989.

Similarly, the Brussels ministerial meeting in December 1990 was intended to conclude negotiations. However, on December 7, the meeting's chairman said the Uruguay Round would have to be prolonged.

The then director general of General Agreement on Trade and Tariffs was asked to find ways to narrow gaps in the negotiation programme. The Uruguay Round was eventually signed in April, 1994.

The agriculture ministry is expected to set up a sub-grou