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India industry must engage more in trade talks-official

Published 07/20/2010, 09:17 AM
Updated 07/20/2010, 09:20 AM

By Matthias Williams

NEW DELHI, July 20 (Reuters) - Key Indian industrial sectors have yet to respond to the government on how tariff cuts proposed at global trade talks would affect them, weakening negotiators' chances of success, the trade secretary said on Tuesday.

Rahul Khullar said he had repeatedly asked industry associations and companies from sectors ranging from chemicals to auto components to give their assessment of the discussions at the Doha talks, but so far, he has had very little feedback.

This makes it harder for Indian negotiators to gauge where they could give some leeway in the talks and which sectors they should protect -- and by how much, Khullar told a group of industry representatives from various sectors.

Reaching an agreement on tariffs and market access is key to the talks, which have progressed only in fits and starts since their inception in 2001 amid differences between key economies such as the United States, China and India.

"I'm being candid, many of you have not bothered to come back to us," Khullar, a top civil servant who is key to Indian negotiations.

"The negotiations have not moved forward, so you're not in trouble. But supposing they had? The fact that you have not responded would only have meant that you could have got yourselves into very deep water."

Khullar told Reuters in an interview on Monday there is likely to be little movement in the Doha talks by the end of this year, while progress in 2011 would be contingent on the outcome of November's U.S. mid-term elections.

One sticking point in the talks has been a demand from Washington for developing countries such as India to abolish tariffs entirely in some industrial sectors. Such cuts are voluntary in the Doha negotiations.

Khullar said Indian industry could not stonewall discussions on lowering tariffs in certain sectors in which Asia's third-largest economy is seen as highly competitive.

"You have got to be able go through your industry tariff line by tariff line and come to a conclusion -- this I can do, this I can't do," Khullar said.

"If all I'm going to say is no', it's not particularly intelligent if you ask me. If you want me or my colleagues to be intelligent negotiators you have to ultimately tell us what we have to do, what we can do and what we can't do."

(Editing by Miral Fahmy)

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