Doha deal linked to US economic fortunes: Pillai

Assessing ground realities, India is not expecting a breakthrough in the WTO talks aimed at reaching a Doha trade deal as long as economic situation in the US remains precarious.

"The US is doing home work. I think so long the economic situation of the US is bad, domestic political compulsions are going to be there . . .," commerce secretary G K Pillai said at a Federation of Indian Chambers of Commerce and Industry function in New Delhi on Thursday.

Pillai said the Obama administration is busy convincing the Congress about the Doha deal. "They (US) will come back to us by September. They are basically trying to convince Congress."

With the US economy in recession, the Obama administration is coming under a domestic pressure to protect its economy by restricting outsourcing of manufacturing and services.

Newly appointed US trade representative Ron Kirk said in Geneva on Wednesday that countries like India and China which are seeking leadership position in WTO should agree to give improved market access.

"What we believe can be helpful in bringing the Doha Round to a conclusion is to provide an opportunity for meaningful market access for all the countries involved, including the developed and what, we define as the advanced developing countries," Kirk said.

The US considers India, Brazil, South Africa and China as advanced developing countries.

Pillai said that given the sate of talks at Geneva, the WTO headquarter, there could be WTO ministerial meeting -- the highest decision making organ -- in January or February next year to conclude the deal.

The Doha Round, which was launched in 2001 has missed several deadlines. The mini-ministerial meeting broke down in July 2008 when the US refused to agree to proposals from India and China that they should be allowed to impose extra 25 per cent duties, if imports are up 15 per cent on farm products.

The US had said that the trigger for extra duty should be given only after imports surge by 40 per cent over the average of the preceding three years.

The US and India have strong differences in the WTO negotiations, on the issues of protection to farmers and nascent industries in the developing countries.