No WTO process can isolate India: Nath

WTO HONG KONG MINISTERIAL

With the stage set for hard bargaining at the sixth World Trade Organisation ministerial starting tomorrow, India today upped its ante, saying it could not be isolated at the WTO and that there could be no deal without it being on board.

"No WTO process can isolate India. The WTO cannot move forward without India being on board. If I am held responsible for there being no deal for protecting the interests of Indian farmers, then I am willing to accept that," Commerce and Industry Minister Kamal Nath told reporters here.

Trade ministers from 149 countries including the newest member, Saudi Arabia, have converged at Hong Kong to deliberate on the modalities for concluding the Doha Development Round.

There are already indications that member countries may not agree on the full modalities for negotiations on agriculture, non-agriculture and services at Hong Kong.

Even WTO Director General Pascal Lamy today indicated that Hong Kong was just a step in the lengthy negotiation process. "In the coming few days, WTO members will have to take important decisions, although not the very final ones. Hong Kong is one of the many steps along the road of a complex and lengthy negotiation. Members must strengthen the draft declaration, build on it and take it forward," he said.

Talks are stuck on agriculture, with countries like the United States, India and Brazil wanting the European Union to improve its offer for a 46 per cent cut in tariffs.

"The gains of expanding trade will not occur in developing countries or Europe unless the EU is willing to agree to a formula that meets the Doha requirements," US Trade Representative Rob Portman said.

Echoing a similar view, Brazil Foreign Minister Celso Amorim said, "unless the European Union is able to improve substantially its offer on agricultural goods, there will not be a successful (trade) round. Now it is clear that unless a miracle occurs "" and I'm not even sure what kind of miracle "" we won't have a final deal in Hong Kong."

EU Trade Commissioner Peter Mandelson, however, said a deal on immediate subsidy cuts was not possible. "There's simply too little on the table to negotiate about in Hong Kong," he said, adding that the EU would not revise its offer on agriculture.

Nath, who has held bilateral meetings with Mandelson, Celso Amorim and Pakistan Commerce Minister Humayun Akthar Khan, said "the Hong Kong hype should not hussle us into accepting a content which is not desirable."

The minister said there was unanimity among members of the G-20, which met today, that the content of the Doha round should address the issues of India and other developing countries.

There could be no compromise on India's stance to get special products status for around 65 to 70 of its sensitive products.

He said the developing countries are seeking proper milestones and proper targets. "Without specificity, there can be no agreement in export competition. Similarly in domestic support, we want to see specificity before we talk of tariff cuts," he said, adding that the EU must move forward.