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Efforts gaining momentum to revive WTO talks, but key issues still unresolved

As the meeting of trade ministers at Global Economic Forum in Davos drawing closer, the European Union’s chief trade negotiator Peter Mandelson said that efforts to restart stalled global trade talks are now gathering momentum and showing new vigor. However, he preferred to deject the expectations that a breakthrough could be achieved in the forthcoming meeting. The trade commissioner has said that despite being in the endgame the outlines of an agreement or prospective deal arrangements are yet to be prepared. Needless saying that the efforts to restart the trade talks definitely have shown a new vigor and a sense of urgency with a positive note to conclude the deal. Recently, Peter Mandelson had met with President Bush in order to come up with a formula for cutting agricultural subsidies and tariffs. Though both the sides maintained that they have made important development to resolve the differences but there was no concrete answer on how much and to what extent they have narrowed their differences. The EU expects Bush administration to improve its offer to limit its farm subsidies, which is at present hovering around $22.5 billion. And the EU has already made it clear that its offer depends on an American reduction of agricultural subsidies to $15 billion or less in a year. On the other hand, Bush administration is of the view that a reduction in farm subsidies is possible with greater openness in European markets. European officials have said that the bloc has signaled of making a concession by reducing trade barriers to foreign farm products to an average of 54 percent. This would bring the EU to a level sought by major developing countries. However, the fact is it would be a slight improvement over what the EU trade commissioner hinted last year. Moreover, the most vital aspect is how India reacts on these proposals. India has proposed using exclusion for sensitive farm products to keep high tariffs on some most traded articles that has created a sharp disagreement with the advanced economies. The western countries are of the notion that India has very little room to maneuver to make some significant concessions.


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