India seeks an end date on export subsidies

With no progress in sight on any issue so far, developing countries led by India and Brazil today stepped up pressure on the developed countries, asking them to at least commit on non-controversial issues like an end date on export subsidies.

"So far, we have been unable to even put a date on the elimination of export subsidies though everyone has agreed that they should be eliminated. There are no differences on this issue. It is unambiguous and unequivocal, yet we can't move on even that," Commerce and Industry Minister Kamal Nath said here.

According to Brazilian Foreign Affairs Minister Celso Amorim, even a forward movement on cotton was desirable since Brazilian farmers were affected on the account of the United States providing export credit.

"There has to be some signal that we are in business, something visible in order to come to certain conclusion. Agreeing to an end date on export subsidies may not solve all the problems but at least it is a step in the right direction. We feel that the developed countries are not agreeing on an end date more for tactical reasons than anything else," Amorim said.

There are serious efforts by the developing countries to close ranks even as the United States and the European Union remain sharply divided on the issue of food aid and a development package for least developed countries.

After the setting up of a core group on non-agriculture market access, the G-20 on Wednesday night convened a meeting with the developing and least developed country representatives from the G-33, the G-90, the African Union, the Caricom and the ACP in order to resolve differences on issues like Nama and services.

"We are trying to sort out our diverse stands on issues. This could be the first step for bigger, broader coalitions," Amorim said but clarified that there were no plans yet to formalise a bigger coalition.

Nath said all developing and LDC countries which met yesterday had agreed that the negotiations in agriculture should include all issues such as cotton, bananas and sugar.

Later speaking to reporters, he said the United States had said it was willing to eliminate export subsidies by 2010, but it was not yet clear whether this included all aspects of export competition.

The minister also said India was in an advanced stage of finalising a unilateral package to provide preferential access to the LDCs. "We hope to implement the package before the end of the Doha round in 2006," he said.