New Delhi: With Agriculture issues sowing the seeds of discord, battle lines have been drawn between developed and developing countries ahead of the WTO's (World Trade Organisation) Cancun Ministerial beginning next week.

"It is clearly going to be a battle between phased elimination of domestic support and export subsidies in developed countries and reduction of farm tariff in developing countries," a top government official said in New Delhi.

"Agriculture issue is still wide open", sources said, adding, "battle lines have now been clearly drawn and the focus is to assault on high domestic support and export subsidies in developed countries."

The developed countries should reduce domestic support and export subsidies on agriculture first as this was the cause for high tariffs in developing countries, he said.

Asked about India's approach and concerns at WTO, the Commerce and Industry Minister Arun Jaitley said the agriculture reform process globally has to start first by removing distortions.

"Agriculture reforms process has to start first globally by bringing down domestic support and export subsidies substantially. The incentives given to farmers in developed countries depresses the markets more for small farmers in the developing and underdeveloped countries," he said.

Refuting allegations that India was adopting a defensive strategy, Jaitley said New Delhi followed a very offensive and positive agenda.

"We have a very offensive agenda regarding reduction in subsidies," Jaitley said.

To the US move to un-bundle Singapore issues, Jaitley said India was categorical in opposing all the four issues into the negotiating table of WTO.

The four Singapore issues comprise trade and investment, competition policy, transparency in government procurement and trade facilitation.

Jaitley said more than 75 developing countries were opposed to Singapore issues.

Sixteen countries led by India, China and Malaysia have sought clarifications from the General Council on how Singapore issues would be dealt with before any modalities for the negotiations were agreed upon through explicit consensus.

PTI