US Trade Representative Robert Zoellick called for "open minds and open markets" Thursday as he tried to persuade India to support a fresh round of global trade talks.
"I am hopeful that India -- a leader in the developing world -- will work with us. The developing world has most to gain from a new round, and the most to lose without one," Zoellick told a luncheon for Indian business leaders.
"The sooner India supports new negotiations, the more influential it will be," he added.
India has relentlessly opposed US and European pressure to join in a new round of World Trade Organisation (WTO) talks, with New Delhi arguing that developed countries have yet to fulfill their market-opening obligations under the previous Uruguay Round.
Zoellick, who is on a three-day visit, said the United States acknowledged the position of India and other developing countries and was working to address "legitimate implementation concerns."
However, he also pointed out that India had been a major beneficiary of the Uruguay round, since when its exports to the United States had more than doubled.
The United States and the European Union both want a new round of trade negotiations to be launched at the WTO's next meeting in November in the Qatari capital Doha.
But countries such as India, Pakistan and Malaysia have expressed concern or outright hostility to the idea, saying the last round did little for them.
They fear a new round of negotiations on subjects including investment rules and competition would be even more costly, and see the EU demand for trading standards that respect the environment and food safety as disguised attempts at protecting domestic markets.
Many poor countries also feel they are not treated fairly by richer trade partners when it comes to agriculture, and are seeking an end to subsidies for some farm exports. The EU opposes such a move.
Zoellick, however, insisted that a new round would be a "win-win" for India.
By helping to knock down domestic barriers to trade, the round would provide Indian consumers with more choices and lower prices, while boosting the long-term effectiveness of the Indian economy, he said.
"By knocking down trade barriers around the world, a new trade round would promote jobs and create valuable new export opportunities for Indian companies."
Zoellick also warned that the emerging strategic relationship between the United States and India would lack resilience and growth if there was a failure to draw their economies closer together.
"Therefore, I am seeking close governmental cooperation on trade, bilaterally and for the global trading system," he said, stressing that open trade reflected the spirit of the 21st century.
"The United States and India should leverage this dynamism to open minds and to open markets." -- NEW DELHI (AFP)
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