EU flexible on Singapore issues

The European Union (EU) has sought India's support to push its case for a flexible framework on the Singapore issues.

The EU's formula features an opt-in-opt-out clause for the proposed agreements on investment, competition policy, trade facilitation and government procurement.

The offer was made to India during a meeting between Commerce and Industry Minister Arun Jaitley and EU Trade Commissioner Pascal Lamy.

Indian negotiators, however, have not disclosed their stand on the EU's latest proposal, which is aimed at generating a consensus among WTO members for the launch of negotiations on the contentious issues at the Cancun ministerial meeting.

The Indian delegates said the matter might come up for discussion at bilateral-level talks later.

"It is difficult to take your foot out of the door once you have already put your foot forward," Jaitley said, after a meeting of the core group on Singapore issues.

The group includes India, Malaysia, Indonesia, members of the African Union and several least developed countries group.

An opt-in-opt-out clause will mean members will have the flexibility to stay away from negotiations on the four subjects. However, they will also have the option of becoming signatories to agreements on the subjects later.

Indian officials appeared confident that the WTO membership would support its stand and propose a continuation of the study group process.

India has been opposing the commencement of negotiations on these four subjects in the absence of 'explicit consensus', as was decided at the last ministerial meeting in Doha in 2001.

The officials said during their consultations with the facilitator for Singapore issues, who would recommend the position on the subject, about 70 members had already sought a deferment of negotiations.

These countries were of the opinion that the Singapore issues did not belong to the WTO and members could not initiate talks when they were not sure of the scope and coverage of the agreements.

"Those who want to launch negotiations are in a minority," Malaysian Trade Minister Rafidah Aziz said at a press conference.

Aziz also said members of the coalition were against unbundling of the four issues, which would allow the launch of negotiations on some, while the study group process continued for the rest.

The US is in favour of such a process. She said members of the core group would not soften their stand on the Singapore issues in exchange for concessions in agriculture or other areas.

"We are not here for give-and-take," she said.

Aziz said there was no logic in the demand made by the proponents of the Singapore issues who negotiations should be launched since the study group process had been underway for seven years.

"The Singapore issues were first discussed in 1997. But what about agriculture, which is being discussed since 1987 and we are in 2003," she added.