The Hindu Business Line : WTO farm talks: Australia wants India to be 'more flexible'

AUSTRALIA wants India to adopt a more flexible stand during talks to clinch the Agreement on Agriculture under the aegis of the World Trade Organisation (WTO).

"We think there is a distraction in WTO talks over Singapore issues. We should try and resolve that," Mr Mark Vaile, Australian Minister for Trade, told a group of visiting journalists.

Singapore issues refer to agreements reached at a WTO ministerial meeting there by different countries in December 1996. As per this, the WTO members agreed to sew up agreements on investment policies, transparency in Government procurement, competition policies and trade facilitation.

These four issues are not substantively linked and the understanding is that a consensus on these could be reached individually.

The European Union and Japan, in particular, want the Singapore issues to be settled before negotiations on the Agreement on Agriculture, but developing countries and G-20 nations, led by India, are against its inclusion.

"If we can negotiate outside on the Singapore issues and make them a little flexible, then we will be able to convince the EU, Japan and others to give up their rigid stand on agriculture," Mr Vaile said.

The problem in working out even a framework for the Agreement on Agriculture is that European Union and Japan are not ready to discuss modalities on reducing the trade-distorting subsidies to their farmers.

"We are continuing to seek improvement in the negotiations to have the Agreement on Agriculture. Subsidies are critical to tackle the issue and it will take time but we are prepared for it," Mr Vaile said. "All forms of subsidies must go," he said.

Australia is trying to get the framework ready by the middle of this year so that the agreement could be up and going by the year-end. "If not, the whole thing will have to be put on hold for 10-12 months as various countries, including the US, are facing elections," he said.

According to Mr Vaile, the three key areas on which the Cairns Group of nations, led by Australia, are trying to work out a framework are improvement in market access for farm products, reduction in domestic support for agriculture and cut in export subsidies.

The Cairns Group comprises countries that are dependent on farm products exports for the survival of their economy. This group is in the forefront of asking the developed nations, especially the European Union and Japan, to improve market access, cut domestic support and exports subsidies.

"Even the US is giving a $20 billion direct support to agriculture," he said.

"At the Cairns Group meeting in Coasta Rica last month, we had decided to eliminate all forms of subsidies. We also decided to work with the key players such as G-20, Japan, the US and EU in WTO to agree to a framework," Mr Vaile said.

Australia is likely to urge the G-20 group of nations to reduce export subsidies.

Asked about the developing countries, especially India, on continuing the special and differential treatment in WTO, he said the Cairns Group had an open mind it.

"We are also keen on access for products from developing countries in the developed market," Mr Vaile said.