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Us, Eu Have Conflicting Interests, Says India

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Our Economy Bureau BUSINESS STANDARD
Last Updated : Jan 28 2013 | 2:19 AM IST

India today went on the offensive against the US and the European Union's joint paper on agriculture saying the two had opposite interests, while the 20 developing countries, which had submitted a joint framework to the World Trade Organisation (WTO), had a common demand for reduction in farm subsidies.

"While one of them (the EU) wanted to continue with the protectionist regime with high tariffs and subsidies, the other (the US) was pushing for market access and saying it would wait for the other partner to cut subsidies before it announced its plans. The two stands are diametrically opposite, but they have come together now," said a commerce ministry official.

India's attack comes just a day after EU Trade Commissioner Pascal Lamy launched an offensive against India and Brazil, which spearheaded the developing countries' campaign after the US and EU unveiled a joint framework last month.

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Besides, officials said members of the Cairns Group like Brazil and South Africa, which were now part of the G-20 coalition, had been seeking steep subsidy reduction, a position shared with India.

As far as market access, through deeper tariff cuts, was concerned, officials said the developed countries needed to make the first move by reducing subsidies.

"At Cancun, the developed countries will try to give the entire issue a spin by saying countries like India have high tariffs. But protectionism does not begin in vacuum. The reforms must begin with subsidies. For every step we walk, they (the developed countries) have to walk five," an official said.

The officials also accused the developed countries of trying to divide the developing world into two groups in order to win the support of the "not-so-developed countries".

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