The Hindu Business Line : US hopes for breakthrough in WTO talks — `India likely to be tough bargainer in agriculture'

Industry & Economy - WTO
Agri-Biz & Commodities - WTO

US hopes for breakthrough in WTO talks — `India likely to be tough bargainer in agriculture'

Our Bureau

Mr E. Ashley Wills, Assistant United States Trade Representative, at an interactive meeting with FICCI members in the Capital on Wednesday. - Ramesh Sharma

New Delhi , June 23

THE US said on Wednesday that it was "hopeful" that a framework agreement would be reached in the coming weeks to take forward the stalled talks at the World Trade Organisation (WTO) while admitting that India was going to be a "tough bargainer" on the issue of agriculture.

The visiting Assistant United States Trade Representative, Mr Ashley Wills, told newspersons that the quantum of cut in trade distorting domestic support or the elimination of export subsidy by the US will depend on the access for its products in markets around the world.

"If market access around the world for products from developed countries are increased extensively, we will see substantial decrease in domestic support and export subsidies in my country and other developed countries. But if the market access is not extensive or restricted, then the extent of reduction in domestic support would be less," he said.

India has been emphasising that all elements of export subsidies granted by the developed countries should be eliminated by a credible date across each product.

"Countries (including the US) that offer export subsidies would agree to eliminate them for different products on specified dates if we come to terms in all other areas including market access," Mr Wills said.

Mr Wills met senior officials of the Indian Government, representatives of the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) during his three-day working visit to India, which began on Tuesday.

Asked whether he expects the formula for tariff reduction in agriculture to be spelt out in the proposed framework agreement, Mr Wills said that the framework agreement, if signed, will contain the formula for tariff reduction. "Discussions are currently on at Geneva on the issue of formulas. We are yet to come to terms on this issue," he said. There is currently no consensus between the US-EU and the G-20, of which India is a member, on the formula to be adopted for tariff reduction in agriculture at the WTO.

Mr Wills also said that the words "less than full reciprocity" would find mention in the proposed framework agreement even though they are likely to be defined in the months after the signing of the agreement.

"What does one mean by less than full reciprocity would have to be worked out," he said.

India has been maintaining that the principles guiding the formula for tariff reductions should provide a method for treatment of sensitive products and should establish proportionality based on less than full reciprocity in the tariff reductions and other market access commitments between developed and developing countries.

Mr Wills, who is here to understand Indian point of view on agriculture and discuss the state of play on multilateral trade negotiations with the Government, used his visit to raise a host of bilateral issues with the Indian Government.

Besides raising the issue of market access for US fertiliser producers to the Indian fertilisers market, Mr Wills also sought information on the quantum of education cess that is to be imposed on all Central taxes.

"We were informed that the details would be announced in the forthcoming budget," he said.