G-8 softens on farm sops

The world's top eight industrial nations today appeared to have climbed down from a tough position on farm subsidies, reviving hopes of resumption of the collasped WTO talks.

"The Doha round should deliver real cuts in tariffs, effective cuts in subsidies and real new trade flows," a statement issued at the G-8 summit here said, emphasising that it is "fully committed to the development dimension of ongoing WTO talks."

The talks in Geneva had failed after the US stuck to its position and refused to move forward in cutting farm subsidies, as desired by developing countries including India.

Regretting that the talks in Geneva early this month failed, the heads of government of the US, UK, France, Japan, Canada, Italy, Russia and Germany said, "We commit ourselves to substantial improvement for market access in trade in both agriculture and industrial products and expanding opportunities in trade in services."

The statement said, "In agriculture we are committed to substantially reducing trade-distorting domestic support and to the parallel elimination by the end of 2013 of all forms of export subsidies as well as establishment of effective disciplines on all export measures with equivalent effect as agreed in Hong Kong."

"We urge all parties to work with utmost urgency for conclusion of the round by 2006-end to strengthen multilateral trading system," the statement added. At Geneva, while the EU had agreed to match the cuts in import tariff for farm produts that developing countries led by India and Brazil had asked for, the US was reluctant to move on farm subsidies.

With the US adamant on the issue of subsidies, there was no negotiating space for developing countries, Commerce Minister Kamal Nath had said on his return from the talks.

The statement, which revives hopes of resumption of the stalled talks, said the Doha round was a historic opportunity to generate economic growth, create potential for development and raise living standards across the world.

Asking WTO chief Pascal Lamy to work for agreement on modalities in agriculture and industrial tariffs within a month, the statement called on all countries to commit action for successful completion of the Doha round.

Only seven of the G-8 countries are WTO members. On Russia's entry into the WTO, the statement said the G-8 supported its expeditious accession to the WTO in accordance with the rules.

The G-8 nations also renewed their commitment to pursue a high level of ambition in all areas of the Doha development agenda with a view to reach a meaningful and balanced outcome.

The G-8 said it was committed to the development dimension of the Doha round and the need to improve the participation of developing countries, including through south-south trade and enhanced regional integration.