India readies for farm talks

Commerce and agriculture ministers hold talks to finalise India's strategy

The newly-constituted Cabinet committee on WTO affairs is scheduled to meet this week to finalise India's stand on agricultural negotiations ahead of a series of crucial meetings in Sao Paulo next week.

The cabinet committee is expected to discuss the demand for a reduction of import duties by developing countries like India.

The US and EU are now pushing developing countries to reduce tariffs after Brussels announced its intentions to eliminate export subsidies.

Commerce and Industry Minister Kamal Nath today held deliberations with Agriculture Minister Sharad Pawar to fine tune the country's strategy for deliberations at the G-20 and the non-core group of five countries, including the US, EU and Australia, meet on the sidelines of the UNCTAD XI ministerial.

"Ours is a cohesive government and today's meeting was part of our efforts to have a regular dialogue with the agricultural ministry. We want to have a clear understanding with them," Kamal Nath told reporters after the meeting. Nath is leading a high-level delegation to Sao Paulo.

The two ministers took stock of the ongoing negotiations on agriculture in WTO, mainly the issue of trade-distorting domestic support and export subsidies in other countries, which impede India's agricultural exports.

The meeting underlined the country's livelihood concerns and the importance of safeguarding the interests of farmers in the negotiations. Kamal Nath said the strategy would be approved and cleared by the Cabinet, which would meet in a day or two.

While the commerce minister declined to give specific details, Pawar indicated that the country's stance on agriculture at the WTO was more or less similar to that of the previous NDA regime.

The meeting of the G-20 on the sidelines of the UNCTAD XI meeting assumes significance as this is the first multilateral level meeting after the failure of the WTO talks at Cancun. Member countries are now trying to thrash out a draft agreement on agriculture by July-end.

Farm View

• The UNCTAD meet assumes significance as it is the first multilateral meeting after the Cancun debacle.
• The US and EU are pushing developing countries to reduce tariffs after the latter hinted at eliminating export subsidies.
• India is concerned over trade-distorting domestic support and export subsidies in other countries.