The Hindu : U.K. official seeks greater market access

Online edition of India's National Newspaper
Wednesday, Jan 08, 2003

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U.K. official seeks greater market access

By Our Special Correspondent

NEW DELHI Jan. 7. The U.K. Trade and Industry Secretary, Patricia Hewitt today opposed agricultural subsidies in the European Union, even while seeking greater market access for British products in this country. Phasing out restrictions in agriculture could lead to $400 billion of higher income in developing countries by 2015, she said, quoting a World Bank report.

She said ``we cannot preach free trade and practise protectionism'' and went on to add that she said the same things to her colleagues in the Brussels headquarters of the European Commission.

Addressing a meeting organised by FICCI, Ms. Hewitt said it was wrong for the European Union to spend two dollars per day on its dairy cows, while a billion people in the developing world survived on half this amount.

``The EU must open its markets and allow in Indian products such as roses and mushrooms; it must also reduce agricultural subsidies and move away from flooding developing markets with cheap imports such as milk powder''.

She said the U.K. was leading the way in pressing the EU to lower its agricultural subsidies. When economies were not doing well, domestic pressures often turned to protectionism, she observed.

The visiting British Secretary who is accompanied by a high power business delegation said industry in her country was looking forward to more partnerships in energy, information technology and ``food and drink''.

British know-how in food processing could be of value in this country, where 40 per cent of food output was wasted before it can be utilised.

Pointing to the British success in exporting curry sauces to India after virtually making curry its national dish, she said food processing was an area of great potential.

She sought greater market access for products like Scotch whisky being deterred by high tariffs.

Arguing in favour of cutting import tariffs, she said halving protectionist barriers to trade worldwide could boost developing country incomes by 150 billion dollars annually. This was three times the amount currently given in aid to these same countries.

Ms. Hewitt also supported globalisation as opening up new markets across the globe and crafting rules to ensure free and fair trade will maximise opportunities and raise prosperity for all.

She said emerging and developing countries stand to gain enormously, which was why the current trade round known as the Doha agenda was so vital.

Earlier, the FICCI president, A.C. Muthiah called for a sustained and effective economic and commercial dialogue between India and the U.K. to fully exploit the economic potential. This would also help to tackle investor-related problems, encourage effective trade policies and create a regulatory atmosphere for enhanced economic cooperation.

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