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US pressure on Indian Cabinet formation?

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    There is a rather odd interview Anand Sharma has given to Reuters. He is off to Washington and the interview comes just before the visit. Part of the interview is about India being keen to break the deadlock in WTO negotiations.

    That's a fair point since multilateral agreements are preferable to bilateral or regional ones. In addition, multilateral agreements can neutralise some protectionism floating around since the financial crisis, though by the time these agreements come into effect, global economy should have recovered.

    There are various reasons why there was impasse in Doha Work Programme negotiations in July 2008. In any negotiations, there are certain to be disagreements, including in NAMA (non-agricultural market access) and services. However, these had meeting-points and what led to the July 2008 impasse was agriculture. Within agriculture, it wasn't domestic support or export subsidies. On the former, reduced liberalisation commitments had been agreed to and on the latter, a phase-out by 2013 was also virtually agreed to, though there was an issue over cotton subsidies. In Pascal Lamy's list of July 2008, there were 20 contentious items and one went down them one by one. It got stuck on item 19, which was special safeguards mechanism (SSM) for agriculture.

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    Safeguards are temporary deviations from liberalization commitments if a deluge of imports causes injury. Given India's high bindings (so tariffs remain high even after reductions from these high bindings), it is probably true that India doesn't really need SSM, even for products like edible oils and dairy. However, these are negotiations and negotiations aren't about liberalisation but reciprocity. Why shouldn't India insist on SSM? Technically, the July 2008 attempt broke down on SSM and disagreements between India and US, though it's possible had item 19 been sorted out, talks would have broken down on item 20 (cotton subsidies) because of US opposition

    In the interview, Anand Sharma has said that impasse has been broken. If this is correct, that could have happened only because India has yielded on its insistence on SSM and because India and US have so agreed, a deal to be formalised in Washington. What did India get in return? In reciprocal negotiations, quid pro quo has to exist. Otherwise, a rumour floating around gets credence. That rumour is US pressure to ensure Kamal Nath's non-continuation in Commerce. Unless the new Commerce Minister comes clean on what India has got in return, Karat/Yechury will go to town over US pressure on Indian Cabinet formation.

    jt secyBy: Dinesh ahuja | 18-Jun-2009 Reply | Forward this columnist is talking all nonsense, what happened to facts? quite a waste of time reading this. express should not let people like this write, get better people on board.
    WTO rejoices over Kamal Nath's exit from commerce ministryBy: mediavigil | 18-Jun-2009 Reply | Forward Even prior to Bibek Debroy article, Devinder Sharma, a well known food policy analyst said, "WTO heaved a sigh of relief when Kamal Nath moved out of the Commerce Ministry, the probability of concluding the contentious Doha Development Round of the WTO appears much brighter. Kamal Nath had a strong grip over the trade negotiations that helped India to resist bullying. WTO chief Pascal Lamy would remain eternally grateful to Prime Minister Manmohan Singh for shifting Kamal Nath. Kamal Nath has been an eye sore not only for Pascal Lamy, but also for the US and EU. Even Prime Minister Manmohan Singh wasn't very happy with Kamal Nath because he did not blindly follow the Prime Minister's directive. Remember the failure of the WTO latest round of talks in Aug 2008. Kamal Nath was aware that George Bush had called up Manmohan Singh thrice and yet he didn't give an impression as if he was buckling under pressure."
    US influence in selection of Indian Cabinet ministersBy: Ravi | 17-Jun-2009 Reply | Forward One whole column solely based on a rumour??? Surely, the columnist can find a better gossip area for his next column. Yes, entire US administration was losing sleep over India's cabinet selection. In another related story, IE columnist also found, err 'heard', President Obama had to be treated for exhaustion and had to undergo phsychological counselling after he suffered through prolonged uncertainty regarding appointment of Indian commerce minister. Our liberal intellectuals, amazing creatures, I tell you!!!
    EditorBy: Nparry | 17-Jun-2009 Reply | Forward Agree completely with 'baffled' about the mediocre and incoherent writing in this article. Most Indian newspapers are poorly written with no quality check, fact-check or spelling-check. For example, most papers write 'pressurising so-and-so' and not pressuring. A simple grammar check would reveal the difference. Mediocrity has seeped into and found a home in the Express.
    The Race to the BottomBy: Dr. Gene Nelson | 17-Jun-2009 Reply | Forward Kamal Nath was remarkably candid in a 15 April 2007 NY Times article. He said that the controversial H-1B Visa was the "outsourcing visa." As a displaced U.S. information technology professional, I don't see that as good. The H-1B program is a strong example of a bloated "government subsidy" program. That's what Nobel economist Milton Friedman called in a 2002 article. U.S. employers benefit because they can hire labor that is effectively indentured for below-market wages.The numbers of visas are excessive... Over 4 million visa admissions between FY 1975 and FY 2005. To learn more, please google the PDF version of the new article, "The Greedy Gates Immigration Gambit." You will learn how Bill Gates, III hired the "best and brightest" lobbyist and his Team (Jack A. Abramoff) to help procure 3 employer - friendly changes to H-1B Visa law. Microsoft also spent about $100 million in political expenditures between 1995 and 2000. Yes, corruption is alive and well in the U.S. IMO.
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