Geneva WTO talks collapse

NEW DELHI: As was widely feared, the mini-ministerial of the World Trade Organisation at Geneva collapsed today on the vexed issue of agricultural trade. Trade delegations from 40 countries prepared to leave Geneva three days ahead of schedule.

Intransigence on the part of the developed countries — notably the United States — is being blamed for the break down. And even as the US Trade Representative Susan Schwab said the negotiations were not dead, the commerce and industry minister Kamal Nath said “there is no need to pretend that this has not been a failure.” He added, “that there was no point continuing with the talks since “there is just not any negotiating space.”

Indian officials in Geneva told DNA that the United States had shown no flexibility in its stand on domestic support or subsidies for agriculture.

The US’s last offer was for a 53% cut in these subsidies. But since WTO negotiations are only on bound levels, this would have meant the actual quantum of the subsidies actually increasing from $19 billion to $21 billion.

What’s more, the US, officials said, was pressing for a 66% cut in average tariffs across the board, increasing market access for its own farm products. Neither the developing countries nor the European Union were willing to accept this.