The Tribune

Remove trade-distorting subsidies: Pranab

March 13, 2007

India today asserted that the trade-distorting subsidies and protection, especially in agriculture, provided by a few developed countries needs to be eliminated for the successful completion of the ‘Doha Round’ negotiations and pointed out that there can be no “one size fits all” approach in the multilateral trade negotiations.

New Delhi also made it clear that though it remained fully committed to the multilateral trading system, and to the successful and early completion of the negotiations under the Doha work programme of World Trade Organisation (WTO), proposals designed to impose a disproportionately higher burden on developing countries are not constructive and will not be acceptable.

“Agriculture remains critical to our collective interest. It is imperative that the trade-distorting subsidies and protection provided by a few developed countries are eliminated as soon as possible so that a truly level playing field can be established,” external affairs minister Pranab Mukherjee said while kicking off the two-day international seminar on “Saving Doha and delivering on development”, here.

“Export subsidies of all forms must be eliminated by a certain date and domestic support substantially reduced under the Doha Round, in order to provide market access opportunities to all,” Mukherjee said in the presence of WTO director-general Pascal Lamy.

 “While it is important that the Doha Round negotiations are brought to a successful conclusion, it cannot be at the cost of its content, which is to ensure a clear balance between market opening and the development needs of the majority of the membership of the WTO,” Commerce minister Kamal Nath said.

“It is in the interest of developed countries to ensure healthy economies in countries of Asia and Africa by ensuring a level playing field. Otherwise, inequities of the existing system will hit trade flows from developed countries as people in developing countries will not have the purchasing power to buy goods and services from the developed world,” the commerce minister said.

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