Doha round of world trade talks: US-Brazil deal on ethanol frustrated by US-India impasse over “emergency” duties

More details emerged on the breakdown of world trade talks in the Doha Round, the collapse of which have prompted fears of direct action at the WTO over ethanol subsidies. Participants said that the breakdown occurred when the US would not accept an “emergency” formula, proposed by India, that would allow developing nations to raise import duties above agreed WTO limits, in cases where there were surges of imports of that crop that would destabilize the domestic production market.

The US said that local Indian prices did not require emergency duties when Indonesian palm imports surged into India last year, and that the US would not agree to higher-than-agreed WTO limits on import duties or domestic subsidies.

Brazil had not supported India because of the potential of a deal with the US over ethanol, and an agreement by the US and Europe to cut beef import duties by 70 percent.

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