EU against India's aid package plan

The European Union has shot down India's proposal for including developing countries in the aid package being considered for the least developed countries (LDCs). The EU has maintained that the focus for the moment should be on the poorest countries.

Commerce and Industry Minister Kamal Nath today said he had discussed with the LDCs the issue that the development package did not mean just a package for the LDCs.

"We are clear that there should be a package for the LDCs, but the development package must address the concerns of both the developing countries and the LDCs," he said.

Asked to respond, EU Trade Commissioner Peter Mandelson said, "Let us focus on the poorest countries. I know that developing countries are complaining, but for once let us focus on poorer countries."

Indian officials said there were concerns that by linking implementation of the LDC package to the end of the Doha Round, the developed countries would pressurise the developing countries to move on areas like Nama.

Both the US and the EU also shot down a demand made by the developing countries' core group on non-agriculture market access to treat para 8 dealing with flexibilities to developing countries as stand-alone and separate from the tariff formula. They said the flexibilities had to be considered along with the formula.

Nine developing countries, including India, Brazil and South Africa, had yesterday announced the setting up of a core group on Nama. Two more countries are understood to have joined the group today. The US and the EU continued to spar on the issue of farm subsidies, food aid and measures to help the world's poorest countries.

Mandelson warned that the WTO may even fail to achieve one of the few goals that seemed in reach for the six-day meeting in Hong Kong "" a package of measures to help the least developed countries.

"If we cannot deliver on this, I really think we should ask what we are doing in Hong Kong," he said.

US Trade Representative Rob Portman said without progress the world could slip back into protectionism. "I believe either we move forward or we risk moving backward towards protectionism that will stunt economic growth and harm the developing world the most," he said in his speech to ministers.