'India leadership key to breaking WTO deadlock'

Washington, Feb 10: The United States sees India's traditional leadership role in the developing world as key to advancing stalled world trade talks, Commerce Secretary Carlos Gutierrez has said ahead of a visit to New Delhi.

''India's leadership is required to get a WTO agreement that will help the whole world and will help India as well,'' said Gutierrez, who is to leave tomorrow for New Delhi.

He said Washington looked to India's clout in the developing world to help the World Trade Organization's Doha round of free trade talks get back on track. The talks were suspended six months ago amid deep divisions among members.

''As other developing countries watch India, and they look for cues from India, we'll need to see movement in agriculture, which of course we understand is a very important decision for India,'' Gutierrez told reporters.

India also needs to help break deadlocks over freeing up trade in the manufacturing and service sectors, he said.

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 on farm tariffs from the European Union, Japan and other big importers, analysts say.

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, they say.

Gutierrez, who had dealings with India in his previous job as Kellogg Co. chief executive, said the 29 billion dollar in annual US-India trade that made India the United States' 19th biggest trade partner showed the business relationship was ''not at its full potential.'' ''As large as it is, it is just getting started,'' he said.

Gutierrez said he aimed to promote cooperation in the areas of service trade, high technology and civil nuclear power under a landmark 2005 bilateral pact, details of which are still under negotiation.

Reuters