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US, EU responsible for depressed farm prices: Jaitley
Cancun, Mexico, Sept 09: India was on the offensive today attacking the United States and European Union for being responsible for depressed farm prices hurting poor farmers in developing countries because of high domestic support and export subsidies in industrialised nations.
From a defensive stance, India was offensive on this issue and Jaitley was categorical in telling US and EU that reforms in agriculture should start first in Europe and America as farmers in poor countries were hurt because of their subsidies, raising serious livelihood concerns.
It was not the question of less distorting or more distorting subsidies as was being made out particularly by EU on agriculture negotiations at WTO, Jaitley, who indulged in some plain speaking on the eve of WTO ministerial here told both Lamy and Zoellick.
There was clearly a "strong and definite" opinion
on Singapore issues, Indian officials told reporters after
the dinner meeting with developed and developing countries.
Some of them were part of the g-20 alliance which
included India, Brazil and China, who have given counter
proposal to the pro developed proposal of the EU and US on
agriculture.
On agriculture, Lamy is understood to have asked
Jaitley to provide statistics regarding how depressed farm
prices affected Indian farmers, which New Delhi has agreed to
provide shortly.
Jaitley also had detailed one-to-one discussions
with Mexican Foreign Minister Louis Ernesto Derbex, who is
the chairman of the fifth ministerial from September 10 to 14.
The meeting was mainly confined to procedural modalities,
officials said.
Jaitley also had a luncheon meeting with a "like-
minded" group, a lose arrangement of countries which come
together on various issues.
On Singapore issues, India has made it clear there
cannot be a predetermined position. "We have made our position
clear and there was convergence of thinking in many developing
countries particularly on having investment rules as part of
trade negotiations," official sources said.
Jaitley had clearly told the bilateral meetings that
India was totally opposed to bringing into the work programme
the four issues of investment, competition policy, trade
facilitation and transparency in government procurement.
Asked if there was any change in stance after the
recent meeting of the cabinet committee on WTO to go with US
on the proposal to unbundle the four issues, officials said
that was only half truth and India would be opposing all the
four issues at the WTO ministerial.
On the issue of non-agriculture products` market
access, which are also known as negotiations on industrial
tariffs, the sources said there was some flexibility since
India did not wish to take a very offensive position as it did
not want to open too many fronts.
On agriculture and Singapore issues, India is
determined to oppose them even at the risk of being isolated
as it was the question of livelihood of 650 million farmers
and sovereignty in the case of investment.
Elaborating on the issue of agriculture, Indian
officials said the EU`s attempt right from 1992 to reform
agriculture through partial decoupling had curiously
opposite effect. In cereals for instance, partial decoupling,
instead of restricting or controlling production, actually
led to an increase in production by nearly 20 per cent.
This was not accompanied by decline in production in
any other sector and could not have been a result of
rising competitiveness of EU`s agriculture. Cereals continue
to remain overpriced and subsidised. It is not clear how the
present decoupling in the proposed common agriculture policy
of EU wold bear the projected results.
Meanwhile, Indian pharma industry representatives, who
have come here as part of CII delegation, said the agreement
on the long drawn out issue of trips and public health prior
to the start of the WTO ministerial has come as a big relief
not only to India but also to other developing and least
developed countries.
Bureau Report