India Says Developing Countries Want More From WTO.

India's trade minister said developing countries need more protection for their farmers before they can back new World Trade Organization agreements, further dampening hopes that the struggling trade organization will be able to pass even a simple trade-boosting package this week.

Minister Anand Sharma said the rich members of the multilateral trade organization weren't taking into account the needs of the poorer countries.

"We cannot continue to have rhetoric of development agenda without even a reasonable attempt to address the issues which are of primary concern to developing economies," he told other emerging-market ministers on the resort island of Bali in Indonesia a day ahead of the start of a World Trade Organization meeting there. "We can no longer allow the interests of our farmers to be compromised at the altar of mercantilist ambitions of the rich."

India's cabinet on Thursday empowered its negotiators to ask the WTO to allow its massive new subsidized food program for four years and then allow it to continue subsidies until a permanent solution is negotiated, according to a trade ministry official who didn't want to be identified. In exchange, New Delhi is ready to offer to support a simple global deal to streamline and harmonize customs procedures that the WTO has been hoping to pass in Bali.

Under current WTO provisions, India could face WTO sanctions if it goes ahead with the program to deliver nearly free grain to around 70% of the country's 1.2 billion people. India's new program would push its subsidies above the level allowed by the trade organization.

India's ability to block the talks represents the latest blow to the WTO, which will see its importance as a hub for global trade talks diminish if ministers don't reach some kind of deal at the meeting this week.

Even a small agreement by the 159 member nations would keep hope alive for more ambitious agreements, including the Doha Development Round, which would cut tariffs and trade-distorting farm subsidies around the world.

However, before they will agree to a simple package of measures from the WTO, India and some other emerging-market countries want to be allowed to boost their government subsidies on food, citing the importance of food security and combating hunger. India has emerged as the leader of a group of dozens of less-affluent countries pushing for the changes.

India is determined to push ahead with its food security program—a cornerstone of the ruling Congress party's platform—ahead of national elections scheduled to happen by the end of May.

Mr. Sharma noted Monday that developed markets such as the U.S. and the European Union have been subsidizing their farmers for decades.

"The massive subsidization of the farm sector in the developed countries is not even a subject matter of discussion, leave aside serious negotiations," he said. "The Bali Ministerial Meeting is an opportunity for the developing countries to stay united in resolve to demonstrate the centrality of agriculture in trade talks."

Source : online.wsj.com