Indra Gurung

Kolkata, January 14:

Peter Mandelson, Commissioner for Trade of European Commission has indicated that the forthcoming WTO ministerial in Hong Kong later this year would be successful in completing the July framework agreement on agricultural issues. While addressing journalists during the 11th Partnership Summit organised by the Confederation of Indian Industry (CII), Mandelson categorically said that the European Union may drop its stance on providing agricultural subsidies, the most debated issue of fifth ministerial conference held in Cancun, in 2003.

“The EU is keen to resolve the outstanding issues and complete negotiations by December 2005, ensuring greater openness to the world and making Europe’s economy more competitive and dynamic,” he said, adding that the successful completion of the Doha Development Agenda (DDA) would pave the path for greater economic integration without barriers.

Citing the July framework agreement as an important milestone in clearing doubts and confusions between G-20 and the developed countries with the least developed countries, Mandelson observed that the forthcoming WTO ministerial is likely to be successful in completing negotiations on a range of areas related to the agricultural sector. He called upon the need to build on that success and re-inject momentum into negotiations, to make the Hong Kong ministerial another critical step towards a successful outcome. “The issue of market access for agricultural produces from developing and LDCs is expected to be resolved,” he added. Mandelson asked the developing countries and LDCs to open up their market for trade on services and industrial goods, so that the developed countries might agree to resolve agricultural issues at the earliest. He also informed that he would be meeting with the Indian commerce minister Kamal Nath to discuss the issues. Mandelson, however, criticised developing countries for having non-tariff barriers as ‘modern form of protectionism’ for their domestic industries.

Stating that Cancun and Seattle are setbacks for the WTO process, Mandelson admitted that economic super powers like EU, Japan and US should no longer stick to their stance over agricultural issues. “The successful completion of negotiations of the Doha Round will be a litmus test for many developing countries,” he said. Praising EU’s policy of ‘everything except arms’ as instrumental in fostering trade relations with LDCs and poor economies, he said that these poor economies have not been able to tap benefits from the policy as much as desired. “LDCs including Nepal are yet to utilise vast opportunities and access to the European nations,” Mandelson commented.

He also admitted that trade policy and WTO rules would be no more a prerogative for a few wealthy nations, as that way of doing business has not benefited the poorest and the most needed communities. “New players must be given their say and the poorest must benefit from global trade,” Mandelson said.

EU urges greater market access

Kolkata:

Visiting European trade commissioner Peter Mandelson on Thursday urged India to grant greater market access, especially in the information technology (IT) sector. India has the expertise and “competitive strength” to gain from opening up its market, Mandelson told a meeting organised by the Confederation of Indian Industry (CII).

“India has much to gain from liberalising trade and services and should not feel defensive about opening up its own market in sectors such as information technology where India is a world leader,” said Mandelson. He said that opening up the market would bring technology benefits to India as well as improve the competitiveness of foreign firms. “An ambitious new offer from India would send a very positive signal both to the World Trade Organisation members and to other investors,” Mandelson said. “India can be confident because India is highly competitive in many sectors like IT and would benefit from further market liberalisation,” he added. — AFP