WTO talks fail as India and China stand up to US to protect farmers

  • 29/07/2008

  • Indian Express (New Delhi)

Arun SPosted online: Wednesday, July 30, 2008 at 0336 hrs Print Email Geneva, July 29: The ministerial level talks here that attempted to clinch a global trade deal failed to achieve a breakthrough after nine long and tense days of discussions mainly due to differences between the US and India on measures to protect the livelihood concerns of poor farmers in the developing world. The talks, that form part of the seven-year-old Doha Development Round negotiations of the World Trade Organisation (WTO), also saw differences between the developed and the developing world in several market-opening commitments regarding agriculture and industrial goods. Though a formal announcement is expected only later in the night, official sources said WTO director general Pascal Lamy clearly indicated that there was no progress in the meeting of the group of seven countries that included representatives from India, Brazil, China, the European Union, US, Japan and Australia. They said, therefore, it was highly unlikely to have any resolution of outstanding issues in a larger group of countries. India had earlier refused to give in to attempts to weaken a measure called the Special Safeguard Mechanism (SSM) meant to protect poor farmers, despite enormous pressure from developed countries, especially the US. The SSM enables developing countries like India to hike agricultural tariff by imposing additional duties to protect the livelihood of its poor farmers from import surges and price declines of sensitive agricultural products like wheat and rice. But it is a contingency measure and, therefore, used only when imports are substantive. Meanwhile, developing countries on Tuesday blamed the US for what they called its stubborn attitude in maintaining the prosperity of its subsidized farmers and said this was the main stumbling block in clinching a global trade deal. Despite efforts between Monday and Tuesday to resolve the SSM issue using different formulations