US willing to cut down farm, export subsidies

Sticking to its older stand US has said that it was ready to cut down on its export subsidies and domestic farm support, provided other coun...

Sticking to its older stand US has said that it was ready to cut down on its export subsidies and domestic farm support, provided other countries too move in that direction.

‘‘We are quite willing to eliminate our subsidies and reduce quite dramatically domestic support only if other countries with subsidies much higher than ours do so,’’ the US assistant trade representative Ashley Wills said, here.

On the sidelines of an industry gathering organised by Ficci, Wills said, ‘‘For the US to cut down on its farm support it was necessary that other markets of the world including India opened up. Hinting towards India, Wills said that lowering tariffs on its farm produce would be in India’s interest. I am hopeful of moving ahead with the WTO agenda despite the multilateral differences’’, he said.

Story continues below this ad

On the same occasion, India received another advice by the US under secretary for commerce and industry Kenneth Juster who said that, ‘‘High tariffs, lower market access and inadequate protection of intellectual property rights in India are adversely affecting the promotion of bilateral trade in hi-technology areas.’’

‘‘Progress at times has been less than it could be in trade… tariff and taxes are too high; there is greater need for protection to intellectual property rights (IPRs),’’ Juster said. Putting almost the entire onus on India, Juster said, ‘‘To create a proper environment for trade, the burden was on Indian shoulders and the country must reduce government restrictions and remove non-tariff barriers.’’

Juster said that the US was committed to enhancing cooperation with India in high technology areas through greater involvement of private sector, increased access to US goods and controlling proliferation of WMD (weapons of mass destruction).

Juster also dismissed India’s charges that trade suffered due to sanctions imposed by the US after the Pokhran blasts in 1998, saying, ‘‘There is a sanctions’ hangover with continuing misconceptions about sanctions which are no longer in effect’’.

Story continues below this ad

Juster who is here to attend the second Indo-US high technology cooperation meeting said India needs to provide IPR protection to attract investments in high-tech businesses. He said the US doesn’t want to restrict India’s progress in the high-tech areas and was keen on building confidence in trade by discussing ways of enhancing business in high technology goods.

Only a small percentage of goods were subject to export controls. In 2002, the restricted goods formed only 1 per cent or $38 million of the total US exports to India, he informed, claiming that this year more than 200 licence applications from India had been processed by the US and their approval rate went up to 90 per cent from 84 per cent.