WASHINGTON, 24 June 2006 — The United States and India called yesterday for a new push to break an impasse in the Doha Round of global trade talks as Washington expressed disappointment its offer to break a prolonged deadlock remain unmatched by other economies.
US Trade Representative Susan Schwab and India’s Commerce Minister Kamal Nath agreed in talks in Washington that the two countries wanted to “conclude a successful, far reaching” Doha Round by the end of 2006, a statement said.
But after the meeting, Schwab said she regretted that the European Union and the so-called Group of 20 major developing countries, of which India is a leader, failed to match Washington’s offer last fall.
She cautioned economies in the World Trade Organization (WTO), under which the global talks are being held, against ending with a half baked deal.
“Some say that the United States has goals that are too ambitious, we should somehow be more realistic or not be (overambitious),” she said at a US-India business forum with Nath by her side.
“We think that will sell short millions and millions of people,” who wanted to eject from poverty and enhance global trade, she said.
Trade ministers are set to meet in Geneva next week to hammer out a mechanism to cut subsidies and tariffs on farm and industrial goods in order to keep the Doha round alive after four and a half years of little progress.
Last October, the United States made a global offer to cut by 53 percent the maximum permitted ceiling for all its domestic farm subsidies in return for an average 66 percent reduction in farm tariffs.
The EU and some developing countries criticized the US plan as unreasonable. “We were waiting, have been waiting and waiting and waiting and waiting for others including the EU and the G20 countries to match our level of offers,” Schwab said, indicating that Washington may be running out of patience.
She said the US position was “very clear - we see the Doha round as a once in a generation opportunity to build trade, economic growth and to help alleviate poverty. “When you have once in a generation opportunity, why settle for a half way deal,” she asked.
Nath said the United States and the EU must forge a compromise on agricultural trade to help break the deadlock in talks. The compromise could come about particularly if the EU improves its offer on the table, he said.
India and Brazil are among leaders of the powerful G20 forum aimed at enhancing dialogue with the Group of Seven industrialized nations.
Nath said that “despite the uphill task, I am optimistic it is the desire of all countries to not fracture the multilateral system.”
Meanwhile, European trade chief Peter Mandelson said yesterday he was encouraged by comments this week by US President George W. Bush that global trade talks should not fail, but he said the United States still has to offer more.
“I applaud the desire of the United States to press for the most ambitious possible outcome to this round. But you cannot get that simply by pushing others to move,” Mandelson said in a speech ahead of key negotiations at the WTO in Geneva next week.
“Before we travel to Geneva next week, all negotiators, and all those who criticize the process from the sidelines, should contemplate the truly enormous costs of failure — both economic and political,” Mandelson said in London. He said he was “most encouraged” after Bush said at an EU-US summit this week he was committed to a successful trade round, something Mandelson said showed leadership.