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India seeks `real' cuts in farm subsidies

Our Bureau

New Delhi , Nov. 26

THE Commerce Secretary, Mr S.N. Menon, has said agriculture is central to any discussion at the World Trade Organisation (WTO) for India and developed countries must concede `real' cuts in farm subsidies for any forward movement of the trade dialogue.

"Developed countries must deliver real cuts. As long as box shifting continues, the situation will not improve, no matter what developed countries say about reducing subsidies," he said at an interactive session on "Hong Kong WTO Ministerial Meeting: Outlook for India" organised by Assocham. Mr Menon said the Hong Kong Ministerial Conference should focus on the developmental issues as mandated in the Doha Round and not digress to issues of market access.

India would forcefully demand substantial reduction in agricultural subsidies given to farmers in the developed economies of the US, the European Union and Japan and would certainly not compromise on market access for developed economies for agriculture produce, said Mr Menon.

"Only if there is convergence in agriculture will other areas such as Non-Agriculture Market Access move and there could be no-trade off," Mr Menon said.

The Commerce Secretary expressed optimism that at the Hong Kong Conference, the interest of all developing countries would be protected. However, he said, India did not expect much from the forthcoming WTO meeting even though the level of ambitions should not be reduced.

"But with divergences remaining, the idea was to reduce expectations without reducing ambition from the Ministerial."

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