At India's
initiative in the second week of April, various G-4 and European
Union nations met in Delhi in an attempt to work out an acceptable
framework towards the progress of the Doha talks and find a meeting
ground for competing interests. The nature of India's engagement
will determine the fate of many other developing countries in
G-20 and G-33, along with Brazil an eminent member of the G-4,
the US, and the European Union.
Germany is seen to tow the middle path and open to liberalisation
of agriculture. Trade experts feel Portugal is less flexible and
more sympathetic towards France's hardline view on agriculture.
To make matters tougher, France is in the middle of election season,
which makes its future stance on crucial issues even more uncertain.
The US government does not have the mandate to take crucial decisions
independent of the Congress until its trade promotion authority
gets in July, movement in the top political ranks in a number
of European countries makes EU trade commissioner Peter Mandelson's
negotiating position more difficult. The presidency of the EU,
which is currently held by Germany, will go to Portugal in July.
In previous failed Doha talks, agriculture has been the main
issue. The subsidies that rich economies such as the US, the EU
and Japan pay their farmers have always been a bone of contention,
even as negotiators race to agree on a binding, all-encompassing
treaty. The European Union has agreed to talks in Delhi in a positive
and flexible manner. The participants failed to seek an agreement
on key issues such as agricultural subsidies and tariffs, measures
to enhance exports from so-called least-developed countries and
concessions for poorer nations wanting to protect some of their
domestic industries. The broad goal was to meet the Doha round's
ambition of cutting poverty and boosting global economic growth
by promoting more trade flows between rich and poor parts of the
world. The Indian lobby believes that such talks would help WTO
to hammer out a new trade accord and further liberalise global
commerce.
India and the US have been holding bilateral talks to find common
ground and narrow down differences. India and Brazil have donned
the mantle of key representatives of developing nations and hold
considerable influence on larger groupings. Breakthroughs had
to include more market access on agriculture, industry and services.
Development will be boosted with a strong market-opening that
generates new trade flows in sectors like agriculture, manufactured
goods and services. The US is trying to woo India in the global
trade arena by promising greater access to the American consumer
market by lifting the ban on its mangoes. For years, the US has
refused to import them because they didn't meet sanitary conditions.
India has thwarted a European Union (EU) attempt to institute
a WTO investigation into the additional customs duties it imposes
on imported liquor. The EU has maintained that the additional
import duties imposed by India on foreign liquors are not compliant
with WTO norms and had asked for an investigation by a panel of
the WTO's Dispute Settlement Board. The United States is also
likely to ask for similar proceedings.
Brazil and India are important countries in different stages
of negotiation and support each other's concerns. Both countries
are working together in different multi-lateral forums for many
years and the business growth between the two countries will be
beneficial to the entire region and the global trade. Aviation
technology can be a major area of co-operation between two countries
as Brazil is highly advanced in aeronautical technology and research
said the minister. India can similarly contribute to the railway
transport system of Brazil. There is a new impetus in political
relationship of the two countries and this will create opportunity
for the bilateral trade of India and Brazil.
There has been growing resentment among other members who feel
that negotiations are being hijacked by rich countries and emerging
powers such as India and Brazil. A successful conclusion of the
Doha Round Table could add as much as $ 96 billion (4,12,800 crore)
a year to the global economy, according to World Bank.
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