FICCI welcomes India's stand in WTO, calls for flexibility

New Delhi, June 22 (UNI) Industry body FICCI today welcomed India's stand in WTO on agriculture issues at the G4 meeting, as negotiations among the four key WTO governments collapsed at Potsdam in Germany, and said developed countries need to show flexibility and political will for a developmental outcome of the Doha Round.

The Indian agriculture sector cannot be made to face the unfair competition and trade distortions arising from the heavily subsidised agriculture products of developed countries, FICCI Secretary General Amit Mitra said.

He said India could not have afforded to dilute its stand in agriculture, as the sector constitutes the backbone of the rural livelihood security system of the country.

The growth in agriculture is important to reduce poverty and inequality in the country, FICCI noted. ''This sector cannot be made to face the unfair competition and trade distortions arising from the heavily subsidised agriculture products of developed countries.'' The agriculture sector provides employment to around 59 per cent of the workforce in India, employing around 234 million people.

Around 81 per cent of Indian farmers are small and marginal farmers with a holding of two hectares or less.

''India's stand in WTO is consistent with the objective of our country to have an inclusive growth that will take care of the special needs of our agriculture sector which is the most vulnerable sector of our economy,'' Dr Mitra said in a statement.

WTO Chief Pascal Lamy also called upon the G4 members (US, EU, Brazil and India) to contribute to the multilateral negotiating process, which will continue in Geneva today.

India and Brazil blamed the breakdown on United States and European Union's unwillingness to cut farm aid and import duties on commodities.

FICCI said the developmental outcome in agriculture negotiations should guarantee substantial and effective reduction in trade-distorting support of developed countries. The outcome should result in real and effective cuts in the Overall Trade-Distorting Domestic Support (OTDS) of developed countries in agriculture.

''In the current scenario, the commitment to reduce OTDS in 'low teens' level by developed countries seems to be the only possible solution for breaking this deadlock,'' it said.

UNI