With World Trade Organisation members refusing to budge from their stated positions, the special session in Geneva next month could also go the Cancun way in the backdrop of elections in many member countries, including the Untied States.
The US is seen as the most stubborn force in the 148-member body. Indian officials said domestic compulsions, with the Presidential elections due next year, were making it tough for the world's largest trader to soften its stand.
Assistant US Trade Representative Ashley Wills, who was in India last week, tried to shift the blame for the logjam on others by stating the US would reduce its farm subsidies only after other developed countries, like the EU, moved forward and developing countries like India agreed to reduce tariffs substantially.
Countries like India and the Philippines, where Parliamentary elections are due in the near future, are also not willing to offer any concessions. They believe such a move will be seen as a retrograde step in the domestic constituency.
Trade economist Arvind Pangariya is of the opinion that things will progress only after the US elections are over. This means the WTO will not be able to stick to its December 31 deadline for the completion of talks.
"At the moment, the US and EU are recovering from the shock of Cancun. Although it is not clear whether time will be ripe to move forward, it appears things will only start moving in early 2005."
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