Accord on Indo-U.S. textile trade

By Our Special Correspondent

NEW DELHI, SEPT. 20. The Centre today expressed satisfaction that the interests of the Indian textile industry have been adequately protected, with the signing of a memorandum of understanding between the two countries on the long pending issue relating to the binding of textile tariffs during the Prime Minister's visit to the U.S.

In an official press release, the Union Textiles Ministry noted that it was significant that the U.S. had also agreed to restore GSP (generalised system of preference) concessions for nine cotton handloom fabric items from India and to hold consultations prior to quota adjustments following the implementation of product integration commitment effective from January 1, 2002. All these would give full opportunity to protect the export interests of the Indian textiles and garment industry, it added.

The issue relating to binding of textile tariffs had been a major irritant in Indo-U.S. trade relations for some time now. In December 1994, the two countries had signed an MoU under which the U.S. had extended certain concessions to India that included removal of quantitative restrictions (QRs) on some textile items and an increase in the base level limits and flexibilities in certain other textile items. India, in turn, was required to remove QRs on textile items in a phased manner and to offer tariff bindings on 396 textile items. While India removed the QRs quickly, the issue of tariff binding had remained pending.

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