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India seeks African support for US cotton deal
14
Jun '10
India seeks support from a group of African countries to sustain its stand against the United States to continue a five-year-old cotton agreement, the newest blockade in taking multiparty Doha round trade talks, forward.

Although, the four African cotton producing countries, Burkina Faso, Mali, Benin and Chad, had publicly declared their disappointment last week, about the abandonment of agreements by the West, which were inked during the Hong Kong Ministerial Conference in 2005; Indian negotiators are dreary about their position, which is likely to get compromised due to American Lobbying.

As per a commerce ministry official, India does not heavily depend upon the exports of cotton, but the industry is yet important. And therefore, if the four African countries mentioned above, are brought out by US, then India will be left in a lurch.

Going along with the other developing nations, representatives of India have mentioned that, the Doha trade agreement cannot be solved, unless there is development in the implementation of the cotton trade rules set up in 2005, informed a WTO official.

As per the 2005 agreement, the developed countries were supposed to remove all forms of cotton export incentives in 2006 and thereby, provide duty and quota-free access for cotton exports from least-developed nations.

However, the defect in the plan is that cotton export incentives, total to about 10 percent of the world's incentives on cotton and the local incentives make up the rest.

Fibre2Fashion News Desk - India


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