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India unmoved by US warning to join WTO talks

P Jayaram and Sumeet Chatterjee in New Delhi

India appeared unmoved Thursday by US warning to join a fresh round of talks of the World Trade Organisation, insisting instead on the implementation of the issues covered under the previous round.

External Affairs Minister Jaswant Singh told visiting US Trade Representative Robert Zoellick that there was need to first deal with implementation of the issues arising out of the Uruguay Round as they were important to developing countries.

Zoellick, who called on Singh accompanied by new US Ambassador Robert Blackwill, had earlier told India's business leaders representing the three apex bodies that New Delhi should liberalise its trade regime and put aside reservations about joining the ministerial conference of WTO in Doha, Qatar, in mid-November.

"Today the United States wants to treat India realistically for what it is - a major country and an emerging power. We want to engage India in a strategic dialogue that encompasses the full range of global issues," said Zoellick, the first member of President George W Bush's cabinet to visit India.

"We welcome a broader role for India, and we want to work closely with India to develop imaginative responses in such areas as counter-terrorism, nuclear nonproliferation, human rights, and environmental protection," he said.

On India's stand against committing to a new round of trade talks in Doha until the WTO corrects imbalances in existing agreement, he said developing countries like India had the most to gain from a new round.

"A new round would be a win-win for India. By helping to knock down domestic barriers to trade, the round would provide India's consumers with more choices and lower prices, while boosting the long-term competitiveness of the Indian economy."

But Singh reiterated the need for a "rule-based, transparent, fair multilateral trading system" and emphasised the importance of 'restoring the confidence of developing countries in WTO'.

But, despite the differences over WTO, both Singh and Zoellick expressed satisfaction over the developing relations between their countries.

Zoellick said: "The US believes that there is an opportunity now to strengthen relations with India across a whole range of issues, including economic relations."

Singh said India-US relations were progressing "very well and the strides in Indo-US trading relations pointed towards an inevitable process of ever-increasing interaction."

Later talking to reporters, Zoellick said if India doesn't want to change in stand on the WTO meet the country would be left behind. "If we fail in Doha as we failed in Seattle there is a fear that free trading system will collapse."

"Active and constructive participation in a new trading round would provide India with the opportunity to amplify its voice and help shape the rules of globalisation. Withdrawal will leave the field to others. The sooner India supports new negotiations, the more influential it will be," he added.

Zoellick said New Delhi and Washington share a number of objectives for new global trade round.

"We can promote more open trade in agriculture, reduce barriers for services, and work cooperatively to thwart efforts to employ labor and environmental concerns for protectionist purposes."

Indo-Asian News Service

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