US Commerce chief prods India on WTO, nuclear deal

WASHINGTON, Feb 22 (Reuters) The United States is looking to India to help lead developing countries to break a deadlock in world trade talks and separately wants New Delhi to move soon to finalize a landmark nuclear power deal with Washington, Commerce Secretary Carlos Gutierrez said today.

Gutierrez, who visited India last week, told the annual meeting of the US-India High Technology Cooperation Group that the United States believes ''there are fewer markets that are now more exciting than India'' and is keen to expand trade.

But he repeated his earlier calls for India, a traditional force in the developing world, to help revive the World Trade Organization's Doha round of free trade talks. The talks were suspended six months ago amid deep divisions among members.

''We believe that India's leadership is required to achieve an agreement,'' Gutierrez said.

With many countries watching New Delhi's trade moves, ''India has a tremendous role to play, a very positive role, in pushing ahead the talks,'' he added.

Trade experts say the key to a Doha deal lies in getting deeper U S cuts in farm subsidies, which developing countries say give U S farmers an unfair market advantage, and in securing similar reforms on farm tariffs from the European Union, Japan and other big importers.

India, Brazil and other big developing countries 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 also urged Indian action on a 2005 civil nuclear deal, a symbol of a new friendship that would let India buy U S nuclear reactors and fuel for the first time in 30 years.

''Now that the U.S. Congress has approved the agreement, the next step is very much in India's court,'' he said.

''There's still a lot of work to do,'' he said. India must win approval from the International Atomic Energy Agency and the 45-nation Nuclear Suppliers Group.

The U S Congress attached several conditions to the nuclear pact which have not gone down well with New Delhi, where politicians of both the left and the right have accused Washington of seeking to stifle India's nuclear ambitions.

The U S-India High Technology Cooperation Group, which includes officials and executives, will spend today and tomorrow addressing Indian concerns about U S high-technology export controls and American concerns about proliferation.

REUTERS PDS RN0228