IndiaPost.com - India rejects US charge on Doha

WASHINGTON: India has rejected the US charge that it is blocking the Doha Round of trade talks but said the officials of the two countries will intensify their engagement in Geneva to narrow differences on cut in duties on industrial and farm goods. "For us, the Doha Round is as important as it is to the United States or any other country.

The criticism (of India) is unfair and inaccurate," Commerce and Industry Minister Kamal Nath said at his session with Talk Show host Charlie Rose. Commerce and Industry Minister Kamal Nath met US Treasury Secretary Henry M Paulson, within three days of a senior Bush Administration official accusing India of wrecking the Doha Round of trade talks.

Nath discussed with Paulson not only India's position in WTO - protecting interest of poor farmers and the fledgling industries of the developing countries - but also a number of bilateral issues. "In addition to the Doha Development Agenda, discussions touched upon the Bilateral Investment Treaty," a release from the Indian Embassy in the US said.

The two sides have been trying to resolve certain contentious issues relating to BIT for quite some time. The second round of exploratory discussions on BIT is being held. US Under Secretary of Commerce for International Trade Christopher A Padilla had accused India of "working behind the scenes for Doha's demise" stating that the WTO negotiations are not a "donor's conference". He had also said India has been a roadblock in success of Doha negotiations.

Nath met US Trade Representative Susan Schwab and discussed ways to move forward in the multilateral trade negotiations which have not achieved any breakthrough since the launch of the Doha Round in 2001. Nath and Schwab agreed for more active engagement at the official level in Geneva, the headquarters of the World Trade Organisation.

"They agreed that every effort should be made to conclude the Doha Round as expeditiously as possible. To this end, senior officials of the two countries would intensify their engagement at Geneva over the coming weeks to narrow the differences and to build on convergences," an Indian Embassy release said. A senior US official had earlier this week blamed India for wrecking the trade talks by "working behind the scenes". At the US Chamber of Commerce meeting, Nath said he was optimistic about success of the Doha Round.

"This Round is about respecting each other's sensitivities," he remarked. He said sensitivities of different countries need to be harmonized. "No country can get everything, but no country is going to give everything away," he added. Susan Schwab asked India and Brazil, the two developing economies, to bring "more" to the table at Doha by way of "increased responsibility" and "positive contribution". "India has a long and proud and powerful tradition as a leader in the North-South issues, debates. The fundamental difference between the Doha Round and the previous trade Rounds is that this is not a North-South issue. This is a round where we need to see a fundamental shift in alliances," she said.

"They are not alliances based on levels of development, not based on geography. These are alliances based on shared economic interests," Schwab told a gathering of top business leaders and executives at the 33rd Anniversary of the United States India Business Council (USIBC). "Yet there are blocs of countries that are unified because of 'developing country solidarity'," she said. "The healthiest and the most positive aspect of the Doha Round is the presence and influence of countries like India and Brazil.

But it is only a really good thing with a positive outcome if that increased role is accompanied by increased responsibility and a positive contribution to the outcome," Schwab said. She said India needs to articulate its self interests in seeing other advanced developing countries open their markets in the Doha Round. "No single country, not the United States, not India, is in a position to solve Doha round. There is no silver bullet," Schwab said.