US, India can bridge WTO gaps: Kamal Nath

Washington, June 28: India and the United States pressed each other to watch out for poor countries' interests in global trade talks, but a top Indian official expressed hope the two sides could bridge differences that have jeopardized chances of a deal this year.

''There has to be a convergence of respecting each other's sensitivities,'' Indian Commerce Minister Kamal Nath said in a speech to the US-India Business Council yesterday. ''And I want to assure you from here, that Susan and I will find that convergence,'' Nath said, referring to US Trade Representative Susan Schwab, who was with him on the panel.

It was the first meeting for the two officials since trade talks broke down last week among Indian, US, European Union and Brazilian officials in Potsdam, Germany.

The discord at Potsdam disappointed those who hoped the four major trading powers could push the Doha round, which has been moving in fits and starts since its 2001 launch, closer to a deal by the end of the year.

Schwab, who met with Nath privately earlier in the day, said India had a special role as a Doha round leader for developing countries to act on behalf of poor countries, not just in its own interest.

Changes in the global economy have deservedly given advanced developing countries like Brazil, India and China an enhanced role in world trade talks, Schwab said.

''But here's the rub. With privilege comes responsibility, including responsibility to maintain the global system, even when it involves some sacrifices. Responsibility to remain engaged and constructive, even when the sledding gets tough,'' she said.

The United States and other developed countries have an obligation to open their markets the most in any WTO trade deal, ''but some of the market opening burden needs to borne by other players, by the emerging players'' like Brazil, India and China, Schwab said.

Although Nath expressed confidence the United States and India could bridge their differences, he repeated his long-standing concern that significant market openings could hurt India's 600 million subsistence farmers.

India also has to look out for other developing countries, which could be hurt by a bad Doha deal, Nath said.

''When we talk of the Doha round ... it's important that the economies of the developing countries become healthy and remain'' healthy, he said.

Otherwise, they won't be able to afford to buy foreign goods, even if they open their markets, Nath said.

He told reporters he had a ''very good'' discussion with Schwab on how to move the talks forward, but warned that it may be easier for the United States to bridge differences with India than with other developing countries.

The polite tone was a far cry from the angry reaction after the meltdown in Potsdam, when Schwab and other US officials pointed the finger at India and Brazil for what they saw as impossible requests for reductions of U.S. farm subsidies and a failure to provide substantial lowering of industrial tariffs.

India said the United States was not prepared to deliver real cuts to generous farm subsidies.

Reuters

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