US commerce chief to talk WTO, retail in India

WASHINGTON, Feb 9 (Reuters) US Commerce Secretary Carlos Gutierrez will urge India to do more to help break a deadlock in world trade talks on a visit to the rising Asian economic power next week, he said.

Gutierrez, who is leaving on Sunday for a trip to India, told Reuters he will also study India's plans to liberalize its retail sector while encouraging New Delhi to play a bigger role in helping wrap up the Doha round of world trade talks.

''We would like more cooperation from India in agriculture, in manufacturing and in services. They can play a very important role with developing countries,'' he said in a an interview in Washington.

''Our estimate is that a successful Doha round will lift 500 million people out of poverty. India has an important stake in that,'' Gutierrez added.

On Wednesday, the World Trade Organization's (WTO) 150 states backed a call for a full-scale resumption of the Doha round of free trade talks, suspended six months ago due to deep divisions between members.

The key to a deal lies in getting deeper US cuts in farm subsidies, which developing countries say give farmers there an unfair market advantage, and in securing similar reforms from the EU, Japan and other big importers on farm tariffs.

Big developing countries such as Brazil and India would have to agree to open their markets, mainly to industrial goods and services but also, in the case of India, to farm goods.

Gutierrez said that with 600 million people in India's farm sector, ''you can understand why they're concerned, but they need to be part of the Doha solution.'' The former Kellogg Co. chief executive said US retailers and other businesses are interested in opportunities stemming from India's overhaul of its highly restricted retail sector.

''Retail trade in India is still very much small stores, individually owned, and they're looking at liberalizing that to allow large supermarkets,'' he said.

''That would be such a boost of energy for the Indian economy,'' Gutierrez said.

''All of a sudden you'd get serious investment there,'' he added.

REUTERS DKS BST0510