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Deccan Herald » Business » Detailed Story
TRADE / See thaw on farm sops, market access
India, US inch closer on Doha
New York, pti:
India and US are increasing their level of convergence on the contentious issues of farm subsidies and market access under the much-delayed Doha Round of negotiations for a global trade deal, Union Commerce and Industry Minister Kamal Nath said.

He said they discussed both “divergences and convergences,” including issues of agricultural subsidies by the US and other developed countries after meeting with US Trade Representative Susan C Schwab here on Thursday
He said both countries want to move forward on the issue. Ms Schwab, who was present when Mr KamalNath briefed the press, said that they also want the European Union to move on subsidies.

Market access

“There is recognition of India’s sensitivities in agriculture and we have to discuss how these sensitivities are to be addressed,” Mr Kamal Nath added.

When trade minister stressed on the market access, Ms Schwab said the Doha Round is primarily, but not exclusively, for market access. Subsidies are also an area where the two countries differ but “we both agree that it has to be part of  negotiations,” she added. “The key is to act in a way that would generate growth and be respectful of each other's ambitions and sensitivities and try to nudge each other and our trading partners to go far ,” Ms Schwab added.

Both of them are expected to hold next meeting on June 11 in Washington when Mr Kamal Nath will visit the US to attend the Private Sector Advisory Group (PSAG).

“It is not specific to India or US, it is to all of us. So we looked at way how we can address non tariff barriers,” Mr Kamal Nath added.

He said they had “useful and extensive” discussions which covered all aspect of trade negotiations and they expressed their resolve to complete trade negotiations as fast as possible.
“At this point of time compared to the last year there is much convergence, that really demonstrates the progress in the negotiations,” he said, adding that, “as India engages with the global economy , it is essential that it has a rule based multilateral system.”

Sense of urgency

Meanwhile, Ms Schwab said she agreed with the “objectives” and sense of urgency about achieving conclusion of trade negotiations earliest as this is a development round that would generate economic growth, economic development and alleviate poverty.  Asked whether there was any progress during the talks, Mr Kamal Nath said every meeting is a move forward. 

“It helps to get together periodically to help crystallise those areas in which we are closer together, we have mutual interest in working together and those areas in which we still have differences and we know we have to figure out how to bridge them.”

The agricultural subsidies are a major issue with the developing countries as farmers in 30 developed countries receive support in various ways equivalent to 1.1 per cent of their GDP. It totals around $280 billion annually.




US Trade Representative Susan Schwab said that the Doha Round is primarily, but not exclusively, for market access. Subsidies are also an area where the two countries differ but we both agree that it has to be part of  negotiations.

The key is to act in a way that would generate growth and be respectful of each other's ambitions and sensitivities and try to nudge each other to go far.



Union Commerce and Industry Minister Kamal Nath said that at this point of time compared to the last year there is much convergence, that really demonstrates the progress in the negotiations. Further he said that as India engages with the global economy , it is essential that it has a rule based multilateral system.

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