http://www.thejakartapost.com/news/2013/12/06/officials-scramble-last-minute-deal-wto.html

Officials scramble for
last-minute deal at WTO
 Mustaqim Adamrah and Linda Yulisman, The Jakarta Post, Nusa Dua,
Bali/Jakarta | Headlines | Fri, December 06 2013, 9:16 AM

Last minute efforts by negotiators to reach a compromise on the agriculture
issue at the ninth World Trade Organization (WTO) Ministerial Meeting could
be in vain, with talks reaching their final day on Friday.

India, which has been blamed for holding WTO negotiations on agriculture in
a stalemate, was still engaged in tense negotiation with the US, mediated
by Indonesia and WTO director general Roberto Azevedo, late on Thursday.

“A face-saving deal is a must. Nobody wants to leave Bali empty handed. But
the progress remains uncertain,” said a senior Indonesian official.

Speculation is rife that members would agree on eight out of 10 negotiated
packages, leaving the farm subsidy issues out for further negotiation.

India’s program of stockpiling subsidized grain and rice to ensure cheap
food for its people is considered to have threatened the progress of
negotiations.

Trading partners fear the program contravenes WTO rules, which limit farm
subsidies, and there are concerns India could misuse the policy to export
food at cheaper prices, thus distorting the market.

Any failure to revive the 12-year-old Doha round of talks would see the WTO
lose credibility in the eyes of its members.

Negotiators have so far only concluded negotiations on the least-developed
countries (LDCs) and development packages, with some countries only willing
to accept agreements bundled with two other deals.

Presidential spokesman Teuku Faizasyah reiterated on Thursday that
President Susilo Bambang Yudhoyono was “still considering” calling Indian
Prime Minister Manmohan Singh, in a last-resort effort by the host.

Despite the President’s plan, which is likely aimed at saving face, sources
with knowledge of the lobbying taking place at the four-day meeting are
losing hope of achieving a deal, with India maintaining its stance on the
agriculture issue.

Indian Commerce and Industry Minister Anand Sharma refused to respond to
journalists’ questions about Yudhoyono’s plan to contact Singh.

He said both Indonesian and Indian leaders had always been “on the same
page” and that the poor “must not be hungry, and whatever agreement is
reached in the WTO should be fair to our country and poor people”.

“There has to be a fair and balanced agreement,” Sharma said. “It is better
to have no agreement than a bad agreement.”

In an interim solution proposed by developed countries, developing
countries would have only four years to run their food security programs
without breaching a 10 percent limit on their agricultural output.

But India still objected to the four-year time frame and was seeking
commitment from all WTO members, including developed nations, to link the
interim solution to a permanent one, Trade Minister Gita Wirjawan said.

Analysts’ expectations were low, even if Yudhoyono lobbied Singh, citing
India’s strong stance and domestic political influence.

“[Singh] has many domestic stakeholders to deal with ahead of India’s
general election next year if he says ‘yes’ [to Yudhoyono],” Centre for
Strategic and International Studies (CSIS) economist Djisman Simanjuntak
said.

Gadjah Mada University’s (UGM) Center for World Trade Studies director Riza
Noer Arfani said Indonesia, as well as other countries, should be worried
if India maintained its position until late on Thursday.

Yudhoyono and Gita, he said, “would by then need a trump card to lobby
India”.

Bagus BT Saragih contri-buted to this report


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