WTO talks: Agri, NAMA modalities by year-end

Assuring that negotiations in the Doha Round of world trade talks are well on track, World Trade Organisation (WTO) Deputy Director General Harshavardhan Singh today said modalities on agriculture and non-agricultural market access (NAMA) were likely to be finalised by the year-end.

"The landing zone in agriculture and non-agricultural market accessnegotiations is emerging. Revised draft agreements on these two topics are likely to be released by the respective chairs in the WTO in mid-November," Singh said on the sidelines of a CII (Confederation of Indian Industry) conference here.

Singh also added that the finalisation of modalities, which are terms of the agreement, would mean that 70 per cent of the work was done. "After that, specific points will be discussed, which should not take more time."

However, Singh said negotiations on issues related to services would take time.

"The mechanism of services negotiations are different from agriculture and non-agricultural market access negotiations, where modalities are agreed to before moving to specifics. Hence, it would take more time to agree on issues related to services sector," Singh said.

Observers feel that India is likely to get a good deal in the services negotiations, but talks may hit a roadblock because of the sensitivity of the US in the sector, the 'Mode 4' delivery of services, which is physical movement of professionals, skilled and unskilled labour for a temporary period to other countries.

Experts also added that India would get a good deal in cross-border supply of services, which included BPO operations.

According to Singh, the political leadership across the world was keen on successfully closing the deal, which was evident in the recent hectic pace of negotiations.

"Also, once the latest draft agreement papers on agriculture and non-agricultural market access are released, others on topics like trade facilitation and rules covering issues like non-tariff barriers will follow," Singh said.

According to Singh, the recent proposals on industrial tariffs in the draft non-agricultural market access agreement addressed concerns of both developed and the developing countries.

"According to the proposed formula, developed countries will have a maximum bound tariff in the range of eight to nine per cent. Thus, they can have a maximum tariff in that range, while the actual tariffs or applied duties will be much less. This address concerns of developing countries as they want market access for their products," Singh added.