US relenting may hasten WTO trade talk success

With trade ministers of the G-5 countries "" the United States, the European Union, India, Brazil and Japan "" agreeing to meet over the next two weekends to break the current impasse in World Trade Organisation talks, the onus to make progress continues to rest on the US.

"Its clearly the 149 countries versus the United States. While all the other member countries have agreed to make the G-20 position as the base for negotiating tariff cuts in agriculture, the US is the odd man out," a government official has said.

The first round of the G-5 meeting will be held from July 22-24 while the second round of meetings will be held from July 28-30 in Geneva. Yesterday, Commerce and Industry Minister Kamal Nath participated in the G-4 meeting which was attended by trade ministers from the US, EU and Brazil.

"All countries including India, would be willing to consider offering more flexibilities, but this would be contingent on the United States making improvements in its stance on market access and domestic subsidies in agriculture," officials said.

Developing countries like India have offered to cut tariffs by up to 36 per cent in order to offer market access to the developed countries.

While the EU has offered to cut tariffs by 48-51 per cent against 54 per cent cuts sought by the developing countries, the United States is still insisting on a 66-per cent tariff cut by other countries to increase market access for its farmers.

"Even the G-10 has said it will be willing to undertake cuts of up to 42 per cent, while the African countries have offered to make cuts of up to 24 per cent," they said.

Similarly, on the issue of domestic support, the EU had offered 75 per cent against 80 per cent which was suggested by the developing countries.

The US was willing to cut farmer subsidy by only 53 per cent against a 75-per cent cut sought by the developing countries. The cuts in subsidy for all other developing countries suggested by the G-20 were 60 per cent.