New Zealand Trade Minister Phil Goff in a recent speech said, through the leadership of Crawford Falconer as chairman of the agricultural negotiating group in the WTO talks, a global trade deal to cut farm subsidies and tariffs are likely to be a reality. Eventually, the same is expected to be ratified by the forthcoming ministerial level Doha talks. He said there were 175 outstanding issues and they have come down to 30 now, and hope the protracted Doha Round of talks would be able to conclude on a positive note by this year end.
The emerging economies Brazil and India consider Agriculture as their backbone of their respective economies and both feel, due to unrealistic subsidies by some of the developed countries, their farmers had to suffer huge losses. In India, owing to high fluctuation in commodity prices and vagaries of weather, farmer suicides are on a rise. Lately, every Indian political party largely accuses farm support of rich nations for the present crisis. On the other hand, agricultural exporters, including the US and New Zealand want major developing countries to open their markets to more foreign farm goods.
In a separate speech, the US Commerce under Secretary Chris Padilla accused India of playing an obstructionist role in the Doha Round, which was initiated in November 2001 for helping the development of poor countries. He used harsh words against India by saying that India should provide responsible leadership, rather than hoping for the demise of Doha round; and Doha round is not a donors’ conference, he added. In the concluding tour to the EU, in Slovenia, President Bush used similar rhetoric against India.
Goff opined it was hard to achieve anything without the support of the new emerging economies China, India and Brazil. While opening the markets of the developing countries to foreign farm goods, he wanted the US as well as the EU to cut farm subsidies more than they have already offered. He emphasized, there need to be flexibility from both sides; and one has to give something in order to get something, he added.