Saturday, September 10 2005 14:52 Hrs (IST) - World Time -

New Delhi: India and other developing countries in the G-20 grouping today (Sept 10, 2005) sought an end to trade distorting farm subsidies by developed nations, crucial for a deal in multilateral trade talks, which are at a critical juncture.

Stating that G-20 proposals provided a basic structure, a middle ground on which to make progress, the declaration issued after the two-day Ministerial meeting of developing countries' grouping on agriculture, in Pakistan asked developed nations mainly EU and US to respond in a constructive manner and show positive response to its proposal.

"Agriculture negotiations are in a critical situation...The lack of results last July has put Doha Development Agenda in a critical situation. G-20 proposals constitute a genuine middle ground. They are technically consistent, politically credible and provide basic structure on which to make progress towards consensus," the declaration said.

The G-20 proposal, which was floated at the Dalian Mini Ministerial of the World Trade Organisation, seeks time-bound phasing out of domestic support, elimination of exports credits and suggests a linear tariff reduction formula within bands preserving the overall proportionality between developed and developing countries.

The G-20 Ministerial, which comes about 13 weeks ahead of WTO Hong Kong Ministerial, reiterated the proposals saying there was need to intensify negotiations along with transparency and involvement of all members in talks.

They also asserted that market access for products of export interest to developing countries should not be impeded by the use of non-tariff barriers by developed countries.

The G-20 includes India, China, Brazil, Egypt and South Africa.

The G-20 meeting also asserted that to achieve substantial progress in Hong Kong, the negotiating texts should be largely finalized well before the Ministerial to allow for adequate consideration by members.

The G-20 Ministers, who were meeting for the last time probably before the the Hong Kong Ministerial said Special and Differential treatment formed an integral part of all elements of multilateral negotiations.

They made it clear that developing countries should not be made to bear disproportionate and high burden (of subsidies) by major subsidizers of agriculture and said Special Products and Special Safeguards Mechanism were integral elements of negotiations to address concerns of food and livelihood security in developing countries.

India's Commerce Minister Kamal Nath, who attended the G-20 Ministerial at Bhurban, had yesterday said: "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".

Stressing that it should be ensured that Least Developing Countries made meaningful gains from reform of each of the three pillars (domestic support, export subsidies and market access), the Ministers expressed their full support for provisions exempting them from any reduction commitments.

They also emphasised on the importance of strengthening of disciplines on export prohibitions and restrictions while recognizing the importance of preferences enjoyed by some developing countries.

G-20 welcomed the appointment of new WTO director General Pascal Lamy.