Mandelson wants his pound of flesh, says Indian minister

India's trade minister is clearly relishing the pivotal role his fast-growing country has established at this critical stage in world trade negotiations.

In a wide-ranging interview with The Independent, Kamal Nath lashes out at the attitude taken by rich nations in the WTO talks ­ especially that of Europe's trade commissioner Peter Mandelson. He appears baffled that Europe has offered to eliminate domestic subsidies and reduce tariffs ­ but in exchange for concessions in other areas, notably service industries and market access for industrial goods.

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"I welcome Peter Mandelson's proposal to say he will reduce by so much but then he says 'I want my pound of flesh'," Mr Nath said. He compared Mr Mandelson to a politician seeking a knighthood simply for obeying a traffic light. "He is looking to be rewarded and rewarded for behaving as one should.

"It is a step in the right direction but it is a question of giving an inch and asking for a mile ­ not just asking for a foot but a mile."

Mr Nath said developing countries' only defence against subsidies was to impose tariffs and duties and insisted any deal must give them the right to defend key sectors. He pointed out that the OECD club of 30 rich nations spends $1bn (£570m) a day on subsidies that keep prices artificially low and make it impossible for poor countries to compete. "The WTO is not about free trade but about fair trade. Small family farms are competing with the massive ranches of developed countries on the back of large subsidies."

He said India would not allow the talks, known as the Doha Development Round, to become a deal simply to open up poor countries' markets to multinationals. "It was not called the development round because of the lack of another description or word," he said. "It was a specific objective."

Mr Nath challenged the notion that a country such as India, which has enjoyed powerful growth for several years, would lose out if the talks failed. India was well positioned to strike bilateral and regional deals to its own advantage, he said.

"The good part about all this is that 10 years ago developing countries were sceptical about the WTO process. Now these countries want to remain engaged and feel that they have a voice ­ very much to the discomfort of some rich countries."