Friday, June 23 2006 10:46 Hrs (IST) - World Time -

Washington: Union Commerce and Industry Minister Kamal Nath has said he is optimistic about the outcome of the world trade talks as no country wants to fracture the mulilateral trading system.

"The difference between the Uruguay Round and the Doha Round is that in the Uruguay Round many countries didnot want to be in. They thought that this Uruguay Round is nothing but a suicide round. Now in the Doha Round all countries want to remain engaged, all countries want to be a part in framing the rules of the game of global trade.

"The modalities ought to have been sorted out at Hong Kong but despite the uphill task I am optimistic. It is the desire of all countries not to fracture the multilateral system," Nath said.

The Minister was addressing a press conference at the end of his address to the United States India Business Council's 31st Anniversary Leadership Summit yesterday.

Nath said while all countries have their share of sensitivities and compulsions they cannot use this to block trade.

"Of course all countries have their perceptions, have their compulsions and their sensitivities and the sensitivities have to be addressed, have to be respected, but certainly sensitivities cannot be used to block,whether it is any county, it cannot use the floor in the garb of sensitivities to stop trade. But at the same time we have to measure what the sensitivities are and the implications," he said.

Asked if countries are aiming high and therefore setting the stage for difficulties along the line, Nath said that there was nothing wrong in 'aiming high' but the bottom line is that countries would have to 'temper' with a view to creating harmony.

"Every country wants a lot. There is no problem in aiming high but there is a day when all this has to be tempered. We also want it. India also wants it, but we will have to temper. We certainly don't want what we call a light round--package anything. We will make sure that this is an effect vie instrument of uniting trade, this Round. Because when we talk of globalisation, India was skeptical of globalisation ten or twenty years ago because we were not globally competitive" he said.

"There are developing countries of different kinds. There are the LDCs, you have the vulnerable economies every developing country has different concerns. Take India and Brazil. Brazil is very offensive on agriculture. India is not very offensive on agriculture," the Minister said going on to make the point that the bottom line was one of cretaing harmony.

Prior to coming to the USIBC meeting to give his Keynote Address, Nath met the U.S. Trade Representative Susan Schwab with the two officials committing to expand opportunities for trade and investment in the United States and India.

"With India already among the United States' fastest growing major bilateral trade relationships, the cooperative steps endorsed today will serve to further trade and investment, with the goal of doubling two-way trade in three years.