India, China, Brazil to break Doha impasse

St Petersburg, July 17: After repeated failure to reach a trade deal at the Doha Round, leaders of the developing countries, noteably India, Brazil, and China took upon themselves the task of breaking the deadlock at the G-8 Summit, asking the developed nations to agree to a sharp reduction in their agricultural subsidies and save the ongoing talks from collapse.

Prime Minister Manmohan Singh along with Chinese President Hu Jintao, Presidents Luiz Inacio Lula of Brazil, Thabo Mbeki of South Africa, presented their strongly-worded ''position paper,'' to US President George Bush, Prime Minister Tony Blair, German Chancellor Angela Merkel and French President Jacques Chirac (France), seeking a steep cut in their farm subsidy.

''The majority of WTO members are developing countries and their interests must be at the heart of the current round of trade negotiations,'' the 'Outreach' countries said at their ''working meeting'' with the G8 -- US, UK, Canada, Russia, Japan, Germany, France and Italy.

The other Outreach delegates included President Vincente Fox of Mexico, President Joseph Kabila of Congo, which represents the African Union, and Nursultan Nazarbayev of Kazakhstan, which represents the Commonwealth of Independent States (CIS).

The outreach leaders said Doha round was the best chance to open world markets, level the playing field, share wealth and create jobs. This was a ''Development Round and it must create new opportunities for the developing world,'' they said.

Poverty alleviation and development promotion were not only ethical and economic imperatives, they were also essential for a stable world economy.

All nations, especially the poorest ones, must benefit from the opportunities created by international trade. A substantial reduction of agricultural subsidies and improved market access for agricultural and other products would increase the competitiveness and improve living standards of developing countries.

Earlier this month, trade ministers from about 60 countries had failed to reach any agreement on the crucial issue of agricultural subsidy at the Mini Ministerial Meeting at Geneva.

The differences cropped up over the issue of Special and Differential treatment to the developing countries for whom the agriculture is subsistence and not mere commerce. They need to protect their vulnerable agriculture, they noted.

The outreach nations also presented their unanimous view on the main issues on the agenda of the G8 summit -- global energy security, education and health. On global trade, they said subsidies, high tariffs, tariff peaks and tariff escalation and other trade barriers in developed countries generated ''distortions'' in the world agricultural market that affected the livelihood and survival needs of millions of people around the world, particularly in poor countries which are heavily dependent on agriculture. The elimination of such practices must not be deferred indefinitely.

''The international community is increasingly aware of the fact that agricultural subsidies in developed countries are not only immoral but often illegal. By keeping these privileges for themselves, rich countries are exporting more poverty to already poor countries,'' the outreach leaders said.

In addition to the elimination of export subsidies, it was urgent for developed members to effect commitments in both domestic support and market access to unblock the round. In the negotiations, the issue of recently acceeded developing members should be addressed properly and effectively.

Pointing out that deadlines had been set and repeatedly missed, they said some offers on the table had fallen short of the level of ambition and of the principle of proportionality found in the Doha mandate. A consensus could be reached only if development was made the ''kernel of the negotiating round and the principle of special and differential treatment incorporated integrally in all aspects.'' Believing that concessions made by developing countries would magically unblock negotiations was an ''illusion.'' In order to live up to its development goals, developed countries must assume their responsibility in moving the process forward.

''The key to the end of distortions lies in the hands of those who distort. The world's poor must stand as the main beneficiaries of a fair, balanced and comprehensive outcome. Our vision of a final deal is one where rich countries will make larger concessions, developing countries will also contribute with important efforts and the least developed will not be expected to make concessions.

In addition, developed members should implement duty free and quota free treatment to least developed members as early as possible.'' A number of pressing issues had to be addressed in the coming weeks.

''Time is running out. The engagement of world leaders is urgently required to break the deadlock. A fresh impetus needs to be given to the negotiations that are underway in all areas.

''All parties must show a readiness to look beyond their narrow interests. They must work together to ensure that international trade will be based on open, equitable and non-discriminatory rules.

We urge leaders attending the summit to strive for a high level of ambition, with fair and equitable results of the Doha Round in 2006, which meet the development imperatives of the developing countries,'' they said in the six-page position paper which also deals with other agenda items.

UNI

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