India hopes the United States will propose substantial reductions to farm subsidies this week as top trade officials from four countries seek a breakthrough in world trade talks at a meeting in Europe.
“I do hope the United States comes with bag full of things tomorrow (Wednesday),” said Union Minister of Trade & Commerce Kamal Nath. Mr Kamal Nath is headed to Potsdam, Germany for a meeting with trade officials from the United States, the European Union and Brazil.
Common ground
The countries are trying to reach common ground on knocking down tariffs and other trade barriers, thereby rescuing World Trade Organization talks from near-collapse.
“I do hope that United States moves forward in addressing the issue of domestic support, domestic subsidies because you cannot be talking of fair trade and continue with domestic subsidies,” Mr Kamal Nath told reporters after a speech in Montreal. Without a deal in principle by the end of July, WTO Chief Pascal Lamy and others have warned the so-called Doha round of discussions could fail, stoking the danger of a revival of protectionism.
India wants developing countries to be able to designate 20 per cent of farm tariffs as “special products” — half subject to reduced tariff cuts, the other half with no cuts at all.
He also expressed the hope that the completion of the Doha Round of WTO negotiations would go a long way in liberalising and enhancing trade and investment flows between India and Canada.

G 4 meet for decisive talks
Potsdam (Germany), afp: The four key players in the World Trade Organization — the United States, the European Union, Brazil and India — arrived in Potsdam outside the German capital on Tuesday for critical talks to break deadlock over a global trade deal.
The so-called “G4” group will meet “with their backs against the wall”, said a Geneva-based diplomat, with all players mindful that a similar meeting last year got nowhere and ultimately led to negotiations being suspended for all of the WTO’s 150 members. The talks are expected to continue until the weekend. Germany, invited EU Trade Commissioner Peter Mandelson, US Trade Representative Susan Schwab, Indian Commerce Minister Kamal Nath and Brazilian Foreign Minister Celso Amorim has warned that this meeting would be “decisive.”