The fresh World Trade Organisation proposals on agriculture for negotiating a global deal to cut tariffs are likely to have India's backing, as they provide protection to the farmers of the developing countries.
A country can resort to additional duty of up to 25 per cent if it finds that its imports have surged between 10 per cent and 15 per cent, according to the negotiating text on agriculture.
The minimum trigger agreed by the United States during the July Ministerial Meeting was 40 per cent, which was not acceptable to India leading to the collapse of the nine-day talks in Geneva.
"The proposals on Special Safeguard mechanism (providing the trigger option to protect farmers against cheap imports) should be acceptable to India," Biswajit Dhar, head of Centre for WTO Studies in the Indian Institute of Foreign Trade, said.
While he was in doubt that whether the proposal would be acceptable to the US, Dhar said, "India should press for acceptance of the proposals in the new negotiating text."
As regards the new proposals on industrial products, Dhar said there was not much change from the previous July text.
An optimistic World Trade Organisation Director General Pascal Lamy said with these revised texts "we are closer to our goal of clinching modalities in agriculture and industry, a stepping stone towards the conclusion of the Doha Round."
Lamy, who is seeking re-election as WTO chief, however, said in a statement, "There is a long way to go before the Round is concluded."
He said the step would send a signal that "all WTO members stand united to face the challenges of the current economic crisis. It will confirm that they reject unilateral beggar-thy-neighbour solutions," Lamy said.
FICCI said the new formula for market opening includes zero-for-zero duty in specific sectors. "This is not acceptable to the Indian industry," a senior chamber official said.
While releasing the revised papers providing formula for cutting industrial tariffs and trade-distorting agricultural subsidies, the WTO said these "would be a focus of crucial talks if a representative group of ministers return to Geneva later in December."
Lamy is considering calling a meeting of key trade ministers later this month.
