EU expresses solidarity with India on trade talks

The European Union has said it shared a common position with India on seeking clarity from other negotiating partners on how they intend to resume the stalled trade talks at the World Trade Organisation (WTO).

The move will build pressure on the US to improve its negotiating offer at the WTO.

"India and EU are together seeking clarifications from the negotiating partners, particularly the US, on how the Doha negotiations will interact with its next year's Farm Bill," said EU Trade Commissioner Peter Mandelson.

Mandelson held extensive discussions with Commerce and Industry Minister Kamal Nath here today.

Asked if he expected a shift in the US stance following the victory of the Democrats in Congress elections, Mandelson said, "Of course, there has to be a shift in its position on farm subsidies since the US has signed up to this at the beginning of the Doha round and without it there can be no end to the round."

Mandelson added that while US President George Bush was right in seeking market access, he could not expect the developing countries to take highly subsidised farm products.

"Real reform of farm subsidies is the other side of the coin of market access," he said.

Given the setback in the talks, Mandelson said he did not expect completion of the modalities of the Doha agreement by the year end. The technical level talks had resumed in Geneva but this was not the same as resumption of ministerial level discussions, he added.

Asked about the ongoing dispute on wines and spirits, Mandelson said, "This is an ongoing discussion. We will touch on this again before the day is out. The WTO procedure provides for consultations before an issue is taken for dispute settlement. This procedure is yet to be taken up (with India)."

Nath said there were some concerns in India with regard to reciprocity. India wants EU to recognise Indian whisky which it currently classifies as rum. "We hope this does not go into dispute settlement. We hope to find a solution soon," he said.

Asked if he was confident of garnering support from the council of ministers on the proposed trade and investment agreement with India, Mandelson said, "I am confident that we will get the mandate. The agreement signed contains the benefits that India and the EU are looking for."