The Hindu Business Line : Without agreement on sectorals, Doha Round may not conclude, says Australian Trade Minister

The Minister of Trade, Australia, Mr Simon Crean (left), with the former CII President and CMD of Triveni Engineering and Industries Ltd, Mr Dhruv M. Sawhney, and the Uruguayan Vice-Minister of Foreign Affairs, Mr Nelson Fernandez, during a WTO session in the Capital on Wednesday.

Our Bureau

New Delhi, Sept. 2 The Australian Minister of Trade, Mr Simon Crean, said on Wednesday that it will not be possible to successfully conclude the Doha Round talks of the World Trade Organisation (WTO), unless a proposal that calls for elimination of duties in certain sectors is accommodated.

Called ‘sectorals’ in the WTO jargon, the proposal — to do away with tariffs in select industrial goods agreed by certain countries — has the backing of many developed nations seeking market access for their factory products in the developing countries, particularly the emerging economies.

However, developing countries, including India, are against the inclusion of ‘sectorals’ in the final agreement due to fears that it would adversely impact their SMEs and industries in the infant stages.

“We can’t close agriculture talks unless we close NAMA, and NAMA won’t be closed unless there is some accommodation on the sectoral front,” said Mr Crean. However, the Minister was optimistic about completion of the talks by 2010.

Mr Crean also said it was important to achieve progress simultaneously in talks on agriculture, industrial goods and services for concluding the Round.

Speaking at a CII session on WTO negotiations, he added that a conclusion to the Doha Round can happen only if both sides are prepared to give. “It will require tough political decisions. We have to deal with a range of issues that need to be resolved,” he said.

In the context of the two-day mini-ministerial meeting which starts tomorrow, Mr Crean said that it’s a reinforcement of India’s engagement in the process. He added that it is an important opportunity, in advance of the G20 Pittsburgh summit, to reinforce political will and momentum.

“This is not a negotiating session. There are a number of issues and complexities that cannot be resolved in this format. I think trying to identify areas that we do need progress in and giving more specific instructions to our officials could be worthwhile,” said Mr Crean.

He further said that a successful Doha Round can deliver $300-$700 billion GDP growth to the world economy.