The Hindu : National : G-20 sets deadline

Online edition of India's National Newspaper
Saturday, Mar 19, 2005

National

National

G-20 sets deadline

By Sushma Ramchandran

LEADING FROM THE FRONT: The Minister for Commerce and Industry, Kamal Nath, with Ministers of the G-20 alliance at the inauguration of a Ministerial meeting in New Delhi on Friday. — Photo: Kamal Narang

NEW DELHI, MARCH 18. The Group of 20 developing countries ministerial meeting today set a five-year time frame for doing away with trade distorting export subsidies by rich countries even as it sought to reach common ground with other developing country alliances. Remaining united on key issues, the group issued a joint statement about its concern over a logjam in talks at the World Trade Organisation over duties on agricultural products.

The two-day conference was given a boost with Uruguay entering the G-20 today, making it the 21st member of this major developing countries alliance. Briefing newspersons, the Commerce and Industry Minister, Kamal Nath, said members recognised the diversity of the G-20 membership and yet their coming together represented their unity and strength. "We are negotiating our cause from a common platform," he said, denying any differences on major issues.

Highlighting the growing influence of the alliance, he said: "The G-20 has played and will continue to play a critical role in changing the dynamics of negotiations in the World Trade Organsiation in favour of developing countries".

'Divisive tactic'

Similarly, the coordinator of the G-20, Brazil's Foreign Trade Minister, Celso Amorim, said the talk of differences was a divisive tactic of developed countries and he would not give it much credence. He said the declaration to be released tomorrow would show that the G-20 was able to remain united. Highlighting the growing influence of the G-20, he said it had become an indispensable interlocutor to advancing negotiations at the WTO. The proof of this was the proposal made by developed countries for help in coordinating with other developed countries.

On the issue of preferential tariff erosion raised by other developing country groups, Mr. Amorim said it was a serious concern and a solution had to be found to help such countries in the long run. At the same time, he said preferential tariffs should not be used merely to protect products of rich countries such as in the case of sugar. Along with Mr. Kamal Nath, he echoed the rejection of the "Swiss formula" of tariff reduction. Agriculture market access formula should be linear and adopt a banded approach, according to them.

Earlier, the coordinator for the Caribbean group - Caricom - the Guyana Trade Minister, Clement Rohee, said despite the difference on preferential tariffs, "the G-20 are our natural allies." He said reaching an agreement with them was "not impossible" and several countries in the group were prepared to continue talks on this issue. On the other hand, he saw considerable commonality in the approach of the G-20 in areas such as services though his group was not in favour of the deep ambitious cuts in tariffs being proposed by this conference.

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