The World Trade Organization's latest proposal on cuts in import tariffs and farm subsidies could help revive negotiations on a new global trade pact, AP QUOTED INDIAN SOURCES AS SAYING FRIDAY. The latest negotiating drafts from the WTO offered a good reason to resume the deadlocked talks, although New Delhi has concerns over some of the content, said Indian Commerce and Industry Minister Kamal Nath. «It is not a text of convergence. (But) this text is a good basis for intensive negotiations,» Nath told reporters. «We hope that in September negotiations start.» The Doha trade talks, named after Qatar's capital where they were launched in 2001, aim to add billions of dollars to the world economy and help poorer countries benefit from new trade flows. Negotiations have been deadlocked because of wrangling between rich and poor countries over eliminating barriers to farm trade and, more recently, manufacturing trade. The WTO draft agreements released Tuesday require the United States to reduce its trade-distorting farm subsidies to a level between US$13 billion and US$16.4 billion (¤9.4 billion and ¤11.9 billion). In return, major developing countries such as Brazil, China and India will have to give greater cuts in industrial tariffs. The proposal didn't make any major new demands for liberalizing farm markets in the European Union, which has already offered substantial cuts. Diplomats from member countries of the world trade body will start discussing the proposal next week, though negotiators appear to have given up hopes of reaching a final accord by year-end. India has concerns over the proposals relating to industrial tariffs, but that would not come in the way of restarting the talks, Nath said. «It is a package ... at least, now, there are certain parameters,» he said. «So we can move forward.» Nath also came out in support of China, which has objected to a proposal in the WTO draft that gives Beijing only a two-year grace period before it is required to cut industrial tariffs. China, which joined the WTO in 2001, wants a 10-year grace period. «Newly acceded members should get some concession,» Nath said. «China has already contributed its part (to trade liberalization).»
