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`Poor nations must study tariff reduction impact'

Our Bureau

NEW DELHI, Oct. 29

THE Associated Chambers of Commerce and Industry of India (Assocham) has underscored the need to conduct a study to determine the effect of reduction of tariffs on the domestic industries of developing countries before embarking on any further negotiatio ns on industrial tariffs at the World Trade Organisation (WTO).

In a statement, the chamber said that a ``study process'' on the effect of tariff reduction will help developing countries to formulate their positions on future tariff negotiations in a better manner.

Assocham has pointed out that there have been experiences of ``de-industrialisation'' in developing countries on account of tariff reductions undertaken by these countries.

Industry associations have generally been apprehensive over the contents of the paragraph on `Market Access for Non-Agricultural Products' in the draft Ministerial Declaration.

Some of them have already made a case for exclusion of a sentence ``product coverage shall be comprehensive and without a priori exclusion'' from the para on `Market Access for Non-Agricultural Products' in the draft Ministerial Declaration.

Their contention is that such a sentence would compel India to bind 100 per cent of its industrial products as against the current level of 67 per cent and that such level of binding may go against the larger interest of small and medium scale enterprise s in developing countries.

Stating that the draft declaration for the Doha Ministerial conference is weighted heavily against the developing countries, Assocham has urged the Indian negotiating team for the Doha Ministerial to ensure that all implementation issues are brought on t o the mainstream of work in the WTO work programme and that these are not limited to the ones listed so far.

The chamber has also advocated that ``investment'' should be removed altogether from WTO work, so that the subject does not keep on ``creeping up'' repeatedly.