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India asks US to cut farm subsidies

July 21, 2006 15:36 IST
Source:PTI
Ahead of WTO's latest effort to revive the stalled trade talks, India on Friday asked the US to make substantial cuts in farm subsidies and made it clear there would not be any compromise on sensitive agricultural products that would hurt subsistence farmers.

"The US must make real, effective and substantial cuts in farm support that distorts global trade. The artificiality in agricultural prices because of the huge subsidies will have to go," Commerce Minister Kamal Nath said.

Nath, who would be going to Geneva for the crucial G-6 meeting of key trading nations on July 23-24, said developed countries must correct the "structural flaws" in farm trade.

He said India has negotiating space and a lot of flexibility in sensitive products. But any imports that jeopardise food security and livelihood concerns of farmers would not be allowed, he said.

When asked whether India has accepted the Swiss formula for tariff reductions in industrial goods, he said the issue was not of formula but co-efficients that would determine the tariff cuts by developing and developed nations.

"Developed countries must realise it is a development round," he said, adding the Doha round of talks must promote trade flows towards developing countries. Nath's comments came just days ahead of the meeting of World Trade Organisation heavyweights that would attempt to salvage the floundering Doha Round negotiations.

Trade negotiators of the G-6 - comprising India, Australia, European Union, Japan, Brazil and the US - will hold crunch talks on July 23-24 and then on July 28-29.

Source: PTI
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