Not unexpectedly, the Ministerial Conference in Cancun, the World Trade Organization meeting reached the conclusion proof, without any convention. The main stumbling blocks were massive subsidies to agriculture (estimated at approximately $ 300 billion a year by rich countries) and so-called “Singapore issues”.

The proceedings of the meeting was a great demonstration of power between developed countries - the USA and the European Union in particular - and developing countries, the bloc of G-22, cited by India, China and Brazil. In principle, it ended in a deadlock.

What are the main effects and consequences of the collapse of the Cancun negotiations? Firstly, by the huge subsidies that rich countries to their farmers, which would remain intact. So, farmers in many poor countries (especially in Africa) would continue to suffer unfair competition from their richer counterparts in the form of production subsidies, export subsidies and import tariffs . Developing countries were convinced to participate in negotiations on the Doha promise that their main development concerns would be accepted.

Indeed, they say that the reduction of agricultural subsidies by developed countries under the agreement of Uruguay has not been implemented and questions should focus on a priority before the news is included in the price.

The most troublesome aspects of developed countries, agricultural subsidies in Cancun was trying to change the definition of what constitutes a “trade distorting” subsidies. They were loans, export subsidies for trade. is clear policy to support home, in the form of grants entry and exit also rising costs of domestic producers an unfair advantage over their market in producing countries cheaper from other countries and must also be seen as distorting trade.

In addition, the European Union and the USA tries to block among the ranks of developing countries to give the impression that they were ready for the phasing out of export subsidies for products of particular interest to developing countries. He hoped that the existence of an influx of some developing countries, for their main products in the list of convicts and the G-22 solidarity. They even tried to attract China by suggesting that the subsidy and tariff reduction commitment would be less China, as it lies at the WTO later. So far, no developing country in the trap. But there are already sufficient indications and explicit threats of USA and the European Union’s negotiating driving licence they operate, bilateral and regional deals with a number of countries and try to a weakening of the coalition of developing countries.

At present, protection is enjoyed by Indian farmers to import duties (now that the import quotas are not more) remains intact. It would be a victory for the government before the elections. The NDA government itself of the project can also contribute to a better protection of interests that the Indian government Uruguay discussions in Congress.

The other obstacle was the Singapore issues - of multilateral rules for foreign investment, competition policy, transparency in government procurement and trade facilitation (simplification of customs procedures, and so forth). Among the latter, the most controversial of developing countries was the attempt to implement (EU-led) a multilateral agreement on investment (MAI).

Countries such as India argue that this is not a single rate of tax rules for foreign investment for all countries. Historically, countries at different development stages (including the USA, Japan, France, South Korea and so on) many species have imposed restrictions on foreign investment would promote economic development. In the future, they should also have the freedom to decide what type of foreign investments are allowed or discouraged. At best, it may insist on the fact that once a foreign investor is allowed for loading in a country, there should be no discrimination against foreign prisoners vis-a-vis a national company. But it has already been guaranteed by several provisions of the MIC (investment measures), under the agreements of the Uruguay. For example, the requirements discriminatory has no local content or export obligations can be held abroad, even longer.

Regarding the other Singapore issues, the objections were not as strong. Indeed, India can win if greater transparency is ensured in public procurement in all countries.

A number of uniform and transparent rules for fair competition should not be a bad idea either. The problem is that even the USA, unfair competition, it is easier to prove, against foreign producers. Even the practices followed by domestic producers are tolerated. It is precisely for these reasons that competition policy problem has been on the agenda of the Cancun conference, at the insistence of the USA. Among developing countries’ perspective of free movement so that foreign investment without a competition policy in the village would have been the worst scenario. Fortunately, the time has been avoided.

Prime Minister Manmohan Singh of the declaration of a second generation Indo-US cooperation in agriculture, after the Green Revolution 70 years, it is already covered by the “magic seeds” distributed by International Agricultural Research Centres of the Rockefeller and Ford foundations, expects that the Bio-technology and water-resistant to stress and life longest entries in the agricultural sector.

While increased productivity significantly, the new venture would also cut the losses after harvest. These are estimated at 10 percent or more for foodgrains and fruits and vegetables, of which India is one of the best manufacturers in the world, as high as 45 per cent. In financial terms, it could mean a multi-million rupee to save it.

What is essential to focus on SPS (sanitary and phytosanitary) measures which are increasingly blocking imports into the world with other non-tariff measures such as technical barriers to trade (TBT). Developed countries have the pressure on India for its tariff levels, while SPS rules to keep indulgent.

The Prime Minister quite reasonable, an increase of agricultural productivity with better quality standards to overcome the automatic circuit breakers put up trade by developed economies, imports from India. India paid little attention to the development of an API strict regime of import at home so far and has thus contributed less than one percent of the total TBT in the world messages so far. Despite this recognition, Commerce, the Ministry of trade policy this year is not the problem pointed on both fronts, import and export.

Certainly, new initiatives could be seen as central to the entrance to the courtyard Indian produce globally.

A Rabo India study for the food processing ministry had stressed “domestic support and export subsidies in developed countries and about 400 billion dollars and non-tariff trade barriers also have the arrivals of Indian exports. Non - acceptance of the mango because of the use of the fruit fly a few countries, shows a technical barrier to trade … ”

But it is the largest canvas Indo-US economic relations in which the initiatives outlined today in the agricultural sector should be helpful to clarify the USA where their own economic interests wins. September During a conference held in Mumbai on “Raising the Bar: India-US Economic Relations” It was something.

The USA analysis, Under Secretary for agricultural affairs, Alan Larson, said that India could be “a great Wild Card as a market for agricultural growth, but only if the country at the reduced rate - and is not a substitute for further steps - tariff barriers to trade.

“India has pointed out that it is the fourth in the world of consumer food, behind the USA, Japan and China and its consumption has rapidly in recent years. Real food, retail spending during the year 2004 is estimated at 180 billion dollars. Until 2020, India is the ingestion of food is expected to double, so that the world’s second fastest growing market of foodstuffs, retailing, a place where the USA wants to permanently leave an indelible imprint.

Kolkata, Aug 18 (PTI) The contentious issue of agricultural subsidies by the USA and European countries are expected to dominate the forthcoming WTO negotiations at ministerial level will take place in Cancun in Mexico.

FK Patrick Macrory, an internationally renowned expert on the WTO and Director of Legal Studies in International Law Institute in Washington, said a seminar, organized jointly by the Exim Bank of India and Indian Institute of Social Welfare and Business Management (IISWBM) that European countries The huge subsidies to their farmers, agriculture in developing countries who have been affected.

Patrick said the USA was also the same thing, but not to a large extent that European nations.

The expert from the WTO said that the question of other export subsidies would also be pork spotlight discussions at Cancun. How farm subsidies, European nations were also doling out huge export subsidies was the deterioration of the interests of developing countries, he added.

Market access, both developed and developing countries have also proposed to discuss in Cancun strong, he observed.

On the issue of sanitary and phytosanitary (SPS) conditions for exports from developing countries by developed ones, Macrory said that an agreement in this regard should be achieved in Cancun to ensure that this type of non-tariff barriers in the path of world trade.

In addition to these themes, discussions would be intentional Cancun on the Singapore issues investment, competition, transparency in government procurement and trade facilitation.

The expert from the WTO said that European countries would like to see an agreement on investment, while the USA has remained quite neutral, au contraire.

The competition, he said, would be largely run on transparency and compliance of the clause of the Most Favoured Nation (MFN) to the developed countries.

On the issue of market access for industrial products, which should be taken in Cancun, to be successful, because an agreement can be reached, he said.

The environment and aspects of work, he said, would certainly be a step backwards on the seat of the next ministerial conference negotiations.

CHANDIGARH: Terming exports as a national priority, Dr RK Wadhwa of the Indian Institute of Foreign Trade, said that the world has become a global village, for the opening great opportunities for export.

According to a report from Hoshiarpur, Wadhwa said during a presentation at the management of export refunds for a seminar on “Management of exports”, organized by the Hoshiarpur Chamber of Commerce and Industry (HCCI) for small exporters in the industry at the hotel presidency.

The assertion that the information was the key to success, Wadhwa said that the exporter must be able to recognize the right of the contract, including the right product, price and channel mode of export subsidies before venturing into this line. He informed that 85 per cent of exports from India were received from 25 countries. He claimed that the potential Punjab was in hand tools, sporting goods, automotive components, parts of bicycles and Giessen.

During a practice towing, SC Ralhan, president of the Northern Region EEPC said that a potential exporter must visit trade fairs, exhibitions and displays of the economy before exports. Ralhan said that it was a misleading as China, India, the main competitors for export.

Deepak Mittal president, HCCI said that the HCCI by the seminar sought to educate entrepreneurs on the various issues related to export.