M A I N   N E W S

Progress on trade talks in Cancun
K. R. Sudhaman

Cancun, September 13
After burning the midnight oil, 146 trade ministers were close to finalising the draft text on the contentious agriculture issue on the third day of the WTO ministerial that is expected to incorporate some of the concerns of developing countries, including India particularly, on a phased elimination of farm subsidies in developed nations. Though it is not clear what the draft is likely to contain, there are indications that several contentious issues have been put in square brackets implying that still sharp differences persisted on several issues.

WTO spokesman Keith Rockwell said the WTO negotiators were inching towards a consensus: “There was movement, in some cases significant movement,” he said.

The Chairman of the WTO Ministerial, Mexican Foreign Minister Louis Ernesto Derbez, had appointed Singapore Trade Minister George Yeo as facilitator, who had separate discussions with the G-22 developing countries led by India, Brazil and China, European Union and United States and jointly with the three before trying to put in place a draft that addresses some of the concerns of all the groups with have conflicting positions.

There are indications that the Ministerial might be extended by a day if the draft was worth negoitating further.

Indications are for possibilities of three kinds: one could be a general draft leaving all contentious issues to be discussed at Geneva six months down the line, secondly a compromise draft with the EU and the US agreeing for phased reduction of farm subsidies and developing countries in return agreeing to gradual opening up of their markets and thirdly a specific and bad draft.

India would be comfortable with a general draft as it would give her time to thrash out differences particularly on the issue of elimination of farm subsidies. A compromise draft too might not be bad for India as phased elimination of farm subsidies could enable New Delhi to increase its farm exports from the present level of Rs 31,000 crore to Rs 100,000 crore in the next five to ten years.

A specific and bad draft perhaps would lead to further confrontation and breakdown of talks at the WTO. A clear picture would emerge once the draft was released and this was expected anytime now, the sources said.

As Agriculture had occupied 80 per cent of the discussions during the ministerial, a finalisation of farm draft would enable other issues to fall in place.

With India and China being in the G-22, the developing group has become very formidable. By its sheer size, the group has become a formidable force in the bargaining. Even on the Singapore issues, the G-16 group has become G-29 with several African and Latin American countries joining it to oppose the Singapore issues being brought into the work programme of the WTO. — PTI 

WTO draft calls for end to export subsidies

Cancun, September 13
A WTO draft trade text issued here today calls for the elimination of export subsidies for farm products of special interest to developing countries and the gradual elimination of export subsidies on other farm goods, according to a copy obtained here. — AFP.