Snow optimistic about WTO negotiations

The marathon WTO talks between the developed and developing nations to iron out the differences over cutting farm subsidy and reducing custo...

The marathon WTO talks between the developed and developing nations to iron out the differences over cutting farm subsidy and reducing customs tariffs may finally come to a logical end. ‘‘Differences are definitely there at the Doha meet, but points of agreement are more than the differences,’’ said US Treasury Secretary John Snow, who is on a four-day visit to India.

‘‘Countries negotiating at WTO should move away from differences… and try to find a solution. The US is willing to do its part to reduce tariffs and subsidies,’’ Snow told reporters in Mumbai.

Snows comments come at a time when India, Brazil, US, Japan and EU were trying to break the deadlock, which is jeopardising the chances of all 148 WTO members approving an outline deal at a December 13-18 ministerial conference in Hong Kong.

‘‘We have taken the first step voluntarily and now want others to follow. Opening up of farm sector will only help developing countries as more funds will flow in followed by modern technologies, thus increasing production,’’ Snow said.

He added developing countries like India would benefit from the WTO talks in the long-run. ‘‘India will gain significantly from the Doha round,’’ he said, adding, ‘‘After all India is now a country which … in terms of its trade sector… is the most advanced in the world.’’

Snow also advocated opening up financial, infrastructure, banking and retail sectors for foreign investors. ‘‘Allowing US companies in retail and banking sectors will be in the interest of Indian economy. My meeting with Prime Minister (Manmohan Singh) will touch upon FDI in retail sector. I understand that he should be facing pressure from close quarters,’’ he said.

Earlier in the day, Snow met RBI governor YV Reddy and other top banking officials.

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‘‘We discussed FDI in financial and banking sectors. I was impressed with the roadmap presented by the central bank and its willingness to open up. US companies have the expertise and money and India has the market both put together can be a good combination for both the economy,’’ he said.

Snow also conveyed US companies willingness to invest in improving infrastructure facilities in India. “US firms can invest in aviation, ports, roads if the investment procedures are eased.

And even as the dust settles down on the Enron issue, the US treasury secretary said ‘‘Reforms in the judicial system should be given top priority by the government if it is willing to attract more FDI investment.’’