For Gutierrez, the road to WTO via New Delhi

New Delhi, Feb 11 (UNI) As US Commerce Secretary Carlos Gutierrez begins his two-day visit to India, New Delhi is hoping that Washington will go the EU way by offering to cut subsidies given to American farmers to break the impasse in the Doha Round of World Trade talks.

Even before Mr Gutierrez steps on to the red carpet rolled out for him, Union Commerce and Industry Minister Kamal Nath has done some loud thinking expressing the way he wants the visit to progress.

''We welcome the EU offer of flexibility on agriculture and are looking forward to something from the US,'' he told reporters after his meeting with visiting Greek Finance and Economy Minister George Alogoskoufi on Friday.

Mr Gutierrez, who will be in New Delhi from February 13 to 14, will meet Mr Nath as well as business leaders, and is expected to push for higher US exports to India.

On his part, Mr Nath is focusing on the critical issue of cut in US farm subsidies while his US counterpart is looking at India conceding ground on freeing up trade in the manufacturing and service sectors, especially foreign farm products.

Mr Gutierrez is also casting an interested eye on the opening of the country's retail sector and the potential existing for American retail giants such as Wal-Mart.

The issues of intellectual property rights, cutting bureaucratic delay for American firms interested in doing business in India and the recent India-US nuclear deal will figure prominently in the talks.

''My visit will focus on expanding our bilateral economic relationship and working to increase US exports to India.

I look forward to discussing with the Indian government the opportunities our two nations face as we strengthen our relationship and expand our economic success,'' he said in a statement prior to his departure.

To India's gratification, the United States sees the country as a key player in advancing the stalled Doha Round, in the same league as the European Union and Brazil.

''India's leadership is required to get a WTO agreement that will help the whole world and will help India as well,'' Mr Gutierrez said.

India, which along with the European Union, Brazil and Japan, had criticised the United States for the collapse of the July WTO talks, may find respite in the Bush administration's proposed reduction in its farm support programmes over the next five years by tying commodity subsidies to farmers' incomes, raising expectations that the US might be able to meet its WTO commitments.

The US is India's largest trading partner, and through November that partnership was worth 29 billion dollars in two-way trade.

The US exports to India rose 25 per cent from January-November 2005 through January-November 2006, and investment is up 10 per cent.

However, India is ranked as the US' 19th biggest trade partner leading to Mr Gutierrez's belief that American companies should be exporting more to India, and that New Delhi should work with Washington to make sure American exporters and businesses are ''treated fairly''.

The delegation includes US Under Secretary for International Trade Frank Lavin, who was in India late last year at the head of the largest US government business development trip.

UNI