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Rediff.com  » Business » Developed nations will not get a better Doha deal: India

Developed nations will not get a better Doha deal: India

By BS Reporter
August 01, 2008 14:00 IST
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Developed countries may not get a better deal in the stalled Doha Round of world trade talks in the future as countries like India are likely to harden their stance when talks resume some time next year.

"The deal that they (developed countries) would have got this time, will not be same. Developing countries have realised that the World Trade Organization is biased towards the developed economies. This was very much evident in the talks. So when talks resume, probably by mid-2009, developing countries will harden their stand. Countries like the United States are adept at taking everything on the table, and giving little in return," said a government official privy to the talks at the recently concluded Doha Round talks in Geneva.

Even the WTO secretariat is said to be lenient towards interests of developed countries.

"Once, when six of the seven countries wanted a cut of about 13 per cent in trade distorting farm subsidies, the US said it was willing to commit only less than 15 per cent. WTO director-general Pascal Lamy acknowledged the US stand. Technically, it was argued that less than 15 per cent cut could mean 13 per cent. But then it would have also meant just less than 15 per cent," the official added.

Sources said that on issues of interest to poor economies, the US hardly showed any interest.

"US Trade Representative Susan Schwab walked out of a meeting with African countries, where the issue of cotton subsidies was to be discussed. The US subsidises cotton by 48 per cent, severely impacting many African countries," the official pointed out.

Commerce Minister Kamal Nath also pointed his fingers at the US, which refused to take into account proposal of the developing countries (G-33 bloc) on Special Safeguard Mechanism - a set of norms that allow developing countries to raise tariffs temporarily to deal with import surges and fall in import prices of farm products.

"The US thought it fit to create an impasse on a safeguard mechanism. Not on commercial interest but livelihood. I can negotiate commerce but cannot negotiate livelihood security," Nath said on Thursday.
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BS Reporter
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