US urges India, China to show flexibility at WTO

Developing nations like India and China need to show flexibility in important issues like farm subsidy, market access and export competitiveness while carrying forward their trade negotiations at WTO, said a top official of US Department of Agriculture.

"All parties involved with the trade negotiations have to show flexibility. Such negotiations have to be based on give and take," Mike Johanns, secretary of USDA, said at a FICCI organised interactive session with trade and industry here.

The important issue of market access, which has been debated extensively since Doha round of WTO, has to be resolved by all including developed and developing nations, he said.

He said greater market access holds the key to improving the living standards of the poor in developing nations.

"We want to be partners in the economic growth process of the developing economy like India. We want our partnership to go on for generations to generations," he said.

Contrary to common perception, he said, 60% of the US farmers do not receive any farm subsidy.

Farm subsidies go to five major crops - corn, sugarcane, rice, wheat and soyabean, he said, adding there is no subsidy on beef, pork, poultry and horticultural products.

India has blamed the US for the suspension of WTO talks, saying Washington's refusal to cut farm subsidy distorts global trade and is a threat to subsistence farmers in emerging economies.

The USDA secretary said a consensus on the important issue of 'market access' would be tried during the next WTO ministerial and secretarial round in Geneva in December.

"We strongly believe that with wider market access the developing economies can benefit immensely," he said and reiterated the US commitment to eliminate any trade imbalance subsidy.