Free Trade should essentially mean 'fair trade': Kamal Nath

Bangalore, Jan 17 (UNI) Union Commerce and Industries Minister Kamal Nath today said Free Trade as envisaged by the WTO should be 'fair trade' for its successful implementation and structural flaws which had been opposed by India should be corrected.

Speaking at the plenary session 'Multilateral Trade versus RTAs: Which Way to Go' at the CII Partnership Summit here, he said subsidies given by developed countries to its farmers had resulted in serious distortions in international agricultural prices and had threatened the very existence of subsistence farmer in countries like India.

''In such a situation, we cannot compromise on issues that threaten the livelihood of our farmers,'' he said.

Mr Kamal Nath said the other aspect of structural flaws in free trade was Non Agricultural Market Access (NAMA) negotiations. Under the pact, developing countries were being asked to reduce duties, which would threaten their infant industries, and it could not be done without adequate safeguards. On the contrary, Doha round was about increasing the market access to developing countries in developed countries, which was not acceptable to India.

''Any deal, which undermines the ability of developing countries to safeguard the interests of millions of livelihoods, provide food security and which would lead to de-industrialisation in developing countries, cannot be accepted,'' he said.

The Minister said the impasse in international trade negotiations had been disappointing, considering the hopes raised after the Hong Kong Ministerial and the G-8 summit, which took place in St.

Petersberg in July.

UNI