Mounting pressure on developed countries, India today formed a core group with seven other developing countries on industrial tariffs to ensure that the principle of "less than full reciprocity" is fully reflected in any deal at the WTO Ministerial, which kicked off today.

We want our concerns to be taken on board. Market access is not an issue of tariffs alone. Market access for India means elimination of tariff peaks and tariff escalation in developed country markets as also end of abuse of anti-dumping laws and removal of non-tariff barriers used to block goods from developing nations," Commerce Minister Kamal Nath said.

Criticising the EU proposal on Non-Agriculture Market Access, Nath said the formula in itself was not important but what it actually translated into in real terms.

The Group, which is co-chaired by India and South Africa, includes Argentina, Brazil, Indonesia, Namibia, Venezuela and Egypt with more expected to join, he said.

The alliance had also written a letter to the chairman of sixth Ministerial conference John Tsang pointing out that the draft text had not adequately reflected the three elements of "less than full reciprocity, special and differential treatment and non-tariff barriers," he added.

"Less than full reciprocity" means developing countries would have proportionately lower reduction commitments than developed nations like the US and the EU.

While developing countries are prepared to make a contribution to the NAMA negotiations, we find the developed countries reluctant to offer their fair share," the letter said. The outcome on industrial goods must be calibrated with the ambition achieved in other market access negotiations, it added. Nath said developed countries must address the issue of tariff peaks, tariff escalations, abuse of anti-dumping instruments and non-tariff barriers.

Otherwise, disproportionate demands made by developed countries would lead to imbalanced outcome and jeopardise the development dimension of the Doha round, he said.

India had, along with Argentina and Brazil, tabled a tariff reduction formula at the WTO which seeks to have multiple coefficients, one for developed countries and others based on tariff averages in developing countries.

The EU and the US are now agreeable on the Swiss reduction formula with two coefficients - one for developed and other for developing countries.

Centralchronicle.com