Saturday, September 10 2005 10:11 Hrs (IST) - World Time -

Bhurban (Pakistan): Contending that a group of 'rich countries' cannot be allowed to dictate global agricultural policies, India yesterday (Sept 9, 2005) urged G-20 countries to put up a united front to work out a free and fair trade agreement under the WTO regime.

The agricultural subsidies being provided by rich countries to their farmers is the main issue on which the talks are stalled at WTO. The subsidy and the support provided by the US and EU create an artificiality of prices which is neither fair nor free trade, Commerce Minister Kamalnath said at a news conference in Pakistan.

"With the artificial prices, the market access being sought by the rich countries into the developing countries is not just acceptable. The developmental aspects cannot be overtaken by the ambitions of the developed countries," he said.

"The subsidy and support provided by the US and EU create an artificiality of prices which neither fair nor free trade," he said.

Even in the area of services, the offers being made by developed countries are poor and inadequate, he said adding, "until the main players like US and EU change their perceptions and their positions we would not be able to move ahead in the development round in the (WTO) Hong Kong in December."

"Our farmers can compete with the farmers of US but not the government of US which is providing huge subsidies to their farmers," he said.

Kamalnath also said that he has apprised the G-20 ministers' meeting of the India-EU summit talks held in New Delhi earlier this week.

At the two-day G-20 Ministers' conference, which began at the Pakistan tourist resort town here India, Pakistan, China along with other member countries came down heavily on the developed countries for persisting with heavy subsidies to agriculture and non-tariff barriers and began working on a joint strategy to pressure the western countries to bring down the subsidies and provide better market access.

"We have been trying to impress upon the developed countries that the current round of talks are aimed at enhancing the multi-lateral trade of the developing countries. But unfortunately the developed countries are looking at this round to enhance their own economies," said.

While officials of the member countries grappled to prepare a joint declaration evolving a strategy specially on the WTO negotiations on the agricultural subsidies slated to be held at Geneva later this month, disappointment prevailed as only eight ministers of the 21 countries of the grouping attended the conference.

Ministers from Brazil, India and Pakistan along with two other countries attended the meet while the three other countries sent their deputy ministers and rest their officials. China was represented by its Ambassador at the WTO.

Inaugurating the conference Pakistan's Trade and Commerce Minister Humayun Akhtar Khan said G-20 group has emerged as strong and cohesive unit ever since it was formed two years ago.

"Its leadership role is well recognized and appreciated," he said adding that the grouping should translate the unity into some concrete results.

He said it was beyond doubt that agricultural subsidies and closure of markets of rich countries have accentuated poverty level in developing countries and quoted recent studies as saying that agricultural policies of developed countries displaced about 40 billion worth of agricultural exports per year from developing countries.

As a result the agricultural income of the developing countries was reduced by 30 billion dollars.

"It is this imbalance that we need to correct and opportunity accorded to us through the Doha Development Agenda, (DDA) must be availed in order to ensure level playing field," he said. An official who briefed the nature of deliberations of the Ministerial meet said the talks revolved around education and elimination of agricultural subsidies and to provide increased market access for the developing countries to that of developed countries.

This is the second time that the G-20 Ministerial conference was being held. The Ministers met in India in March this year where they adopted a declaration calling for reduction and elimination of agricultural subsidies and increased market access to products from the developing countries.