India-China unity couldn't save WTO talks | Talks fail

More than 30 trade ministers worked overtime over nine grueling days at the hotly contested WTO parleys. But in the end collapse was inevitable.

Intensive negotiations among key members including India and China broke up due to sharp differences on special safeguard mechanisms for the agricultural sector.

“It is disappointing. Last mile. Last mile of concern for development of farmers,” said India’s Commerce Minister Kamal Nath.

The US wants developing countries to open up their economies for agricultural imports and along with EU, agreed to cut its farm subsidies, as quid pro quo.

But India and China, argued that this measure is useless, unless imports increase by 40 per cent and that would prove devastating for their domestic farmers.

This was not an India versus US issue, India had the backing of 100 countries including China. The exclusive focus on special safeguards was also seen by developing countries as a US ploy as it had little to offer on the issue of cotton subsidies.

“It is heartbreaking. In the end an irresistible force met an unmoveable object,” said EU Trade Commissioner, Peter Mandelson.

But WTO director General Pascal Lamy is still hopeful things will look up.

“People from small groups and large groups have told me that what was on the table should be captured, preserved, too early to throw in the towel,” he said.

There was sadness as the talks ended because success would have come as welcome news for a world facing threats in its food, fuel and financial services markets.

“It is unconscionable that we have pushed the gains of the past 30 years,” said US trade representative, Susan Schwab.wto