Days after the United States alleged that India was the sticking point in the Doha round of WTO trade talks, the European Union on Tuesday backed India.
"India and the EU are on the same line on agriculture, though have not agreed on all the points," said EU Agriculture Commissioner Mariann Fischer Boel.
US Trade Representative Susan Schwab, in a recent article, had blamed India's stand on agriculture as the stumbling block in the Doha round.
Boel rubbished Schwab's claim that the US, the EU and Brazil had agreed on many points in the Doha round and blamed domestic agricultural subsidies given by the US for the stalemate.
"An obvious example in the agricultural sector is the trade-distorting subsidy which the US pays to its farmers, and which must be disciplined, just as we have disciplined our support systems," she said.
Urging the US to be more flexible over subsidies, Boel hoped the final version of the proposed US Farm Bill would rein in domestic farm subsidies.
Commerce Secretary GK Pillai said the next 60 days would be crucial for the Doha round. "The trade promotion authority in the US will expire soon. After that, countries will not be able to negotiate with the US on the WTO platform," he added.
Pillai said the Doha round was a hostage to the US agricultural subsidies, enjoyed by less than 1 per cent of the population in that country.
"Only six commodities, including rice, wheat, soyabean, corn and sugar, attract as much as 75-80 per cent of agricultural subsidies in the US," he added.
