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WTO draft may divide third world
Monica Gupta in New Delhi
 
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June 24, 2006 02:34 IST

A new WTO draft to finalise the formula for tariff cuts in agriculture could divide the developing world, with larger economies like India and Brazil ranged against their poorer counterparts in Africa and elsewhere.

Commerce ministry officials say the draft is an attempt to divide the developing world on the crucial issue of market access in agriculture. India's formal response to the text would be ready next week.

The text, which runs into 72 pages, has 750 brackets (each of these are conditions and numbers that have not been finalised), reflects the continuing differences on agriculture.

Even the chairman of the WTO committee on agriculture Crawford Falconer, who prepared the text, mentions the divide in the covering letter.

"This document is not, in a formal sense, agreed to by the members, even as a draft. It is not an elegant document. But it reflects the reality of where we are," it says.

The text will come up for discussion in Geneva during a meeting of the trade ministers from June 29 to 30.

There are other instances of greater leeway to the developed countries. For instance, the draft states that sensitive products, which refers to products on which the developed countries would allow only minimal reductions, if at all, might not be subject to tariff caps.

However, with regard to special products, which are of interest to the developing countries, the text suggests a cap.

"There is no mention of exclusion from tariff caps in case of special products," a commerce ministry official said.

On tariff escalation, the official added that there was no mention of special and differential treatment for developing countries.

A separate draft text for non-agricultural market access also focuses on a sectoral approach rather than an on-the-broad formula.

Developed countries like the United States are keen on winning sectoral tariff cuts and the draft reflects this, the official said.

India will work with the G-20 and G-33 on submitting joint responses on specific issues such as special and sensitive products. Officials said all eyes were now on the US stance on these issues.

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