Thailand may exit G22

Thailand, which signed a framework free trade agreement with India last week, is likely to walk out of the alliance of developing countries that came together against the European Union and the US on international farm trade in Cancun.

Some Latin American countries are also expected to desert the alliance along with Thailand.

Commerce ministry officials said Costa Rica and Guatemala had left the alliance and more countries, including Thailand, could make an exit.

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The officials, however, added that the founder members like China, Brazil, Argentina and South Africa would continue to demand dismantling of trade distorting subsides extended by developed countries like the US and members of the EU.

Officials said the US and EU had intensified pressure on many developing countries to opt out of the 'G-20+' alliance, which had put up an united stand at the Cancun ministerial meeting of the World Trade Organisation.

The US and EU, which account for a bulk of the subsidies extended to farmers by developed countries, have threatened to block bilateral trade deals that are in the pipeline if the developing countries continued to oppose the US-EU stand on agricultural negotiations.

The 'G-20+' members had met in Argentina last week to press for their demands. Officials said the developed countries will put pressure on Thailand to opt out of the alliance at the Apec meeting scheduled to be held in Bangkok.

The meeting is expected to be attended by United States Trade Representative Robert Zoellick and WTO Director-General Supachai Panitchpakdi, a former Thai deputy prime minister.

Indian officials, however, said developing countries had realised the role that a strong alliance could play to protect the interests of smaller players in the international market and even if some members opted out of the group, they might reconsider their decision before crucial decisions were taken at the multilateral forum.