Emerging economies led by India and Brazil have informed developed member countries of WTO that they would not accept any dilution of issues concerning food and livelihood security, while agreeing to reject rich nations’ unreasonable demands for market access.
As different groupings of the developing countries met in Geneva on Monday as part of their renewed attempts to push the Doha trade talks, a consensus emerged that no compromise could be made by the majority of 150 WTO members “to satisfy their (rich nations) demand of additional market access.”
Cut in subsidies
In fact, India and Brazil challenged the United States to offer “real” cuts in the amount of subsidies paid out to American farmers or risk another setback in the World Trade Organization’s long-suffering round of global commerce talks.
“The US has to deliver,” Commerce Minister Kamal Nath told reporters after top officials from over 20 developing countries met at the WTO’s Geneva headquarters.
In their statement, developing countries said a “low-teen” number for US farm subsidies, which they interpret to include levels as low as US$10 billion, would reflect a “commitment to real and effective cuts” and is the “only possible outcome.”
Brazil has proposed a limit of US$12 billion, Foreign Minister Celso Amorim said. Mr Kamal Nath said many of the countries at the meeting wanted US assurance that spending would not increase from a current estimated level of US$11 billion. In a series of meetings by members of G-33, G-20 and NAMA 11, it was decided that while developing countries should continue to engage themselves in the WTO negotiations, there was a concern that the US and EU have “hardly made any movement” in their latest offers on agricultural subsidies.
Mr Kamal Nath, while addressing the G-33 meeting, said the Special Products (SP) and Special Safeguard Mechanism (SSM) were critically important for India and other members of the grouping. “...The issue would not be allowed to be diluted in any way,” he said.
Brazil and India, which co-lead the WTO’s emerging economies bloc, meet next week with the US and the European Union in Potsdam, Germany, for talks that have been described as crucial for the six-year-old talks.
The United States and the 27-nation EU say they will make no further concessions on agriculture as long as major emerging economies such as Brazil, China and India refuse to open up their markets to manufctured products, which comprise the vast majority of goods traded internationally.

Tariff cuts
India, a significant leader in the G-20 grouping as well, along with Brazil, said G-20 members have already made ambitious offers by agreeing to the principle of two-third overall proportional tariff cut.
The G-20 said NAMA 11 grouping, which includes India, Brazil, Argentina, Indonesia, Pakistan and China, rejected developed countries’ proposal of a Swiss coefficient of 15 for the developing countries.