Date:22/11/2006 URL: http://www.thehindu.com/2006/11/22/stories/2006112203871700.htm

Business

Cut farm tariff, says U.S.

Special Correspondent

NEW DELHI: Mike Johanns, Secretary, U.S. Department of Agriculture, on Tuesday cautioned India against shutting out its markets to agriculture produce since the Doha Round would not have a balanced outcome unless reduction of subsidies is accompanied by market access.

Addressing an interactive session on Indo-U.S. Agriculture Trade and the Doha Round: Reaping benefits of partnership, organised by the Federation of Indian Chambers of Commcer and Industry here, the U.S. Secretary of Agriculture said: "In a situation where you protect 20 per cent of your tariff lines, 98 per cent of your market gets protected from imports."

"Even under the G-20 formula, only 14 per cent of tariff lines would fall below the current and applied rates. That leaves 86 per cent with no new market access.

It is important to remember this when discussing which lines really need special treatment. If no new trade is generated, there is no need for additional protection.

The Doha Round is about reducing barriers, not building them,'' he elaborated.