Govt for high-level trade talks with US, EU

Given the possibility of another mini-ministerial meeting by July end to hammer out an agreement for completion of the Doha round of trade negotiations, the Cabinet secretariat has mooted that India hold high level but confidential parleys with the United States and the European Union.

The parleys, if agreed upon, will try and convince these countries that India has no additional flexibility than what it has already put on the table.

Suggesting a course of action on the WTO front, the secretariat's research and analysis wing has advised the commerce and external affairs ministries to see if a visit by WTO Director-General Pascal Lamy can be arranged at the earliest. This, it hopes, will allow him to get a first-hand feel of the problems faced by India's agriculture and manufacturing sectors.

Highlighting the US opposition to India's main demands in agriculture "" special products and safeguard mechanism "" the secretariat has said the country must strive to ensure Lamy does not offer numbers in the context of modalities which are unacceptable to India.

It added that every available forum must be used to stress the stand that the country will not compromise on its farmers' livelihood and that industrial tariffs will not be reduced beyond a reasonable limit.

It may be recalled that India had walked out of the WTO ministerial meeting held from June 29-July 1, with countries failing to arrive at a deal on lowering agriculture subsidies and cutting tariffs on agricultural and industrial products.

Subsequently, WTO countries had asked Lamy to set up consultations with governments in an attempt to identify possible compromises and facilitate an agreement.

In fact, Lamy is lobbying G-6 countries (Australia, Brazil, Japan, India, the EU and the US) on the sidelines of the G-8 summit (July 15-17) in Russia.

It is, however, unlikely that the December deadline to complete the Doha development agenda will be met.