WTO pact: Industry asked to be pro-active

By Our Special Correspondent

CHENNAI, MARCH 19. Neither regional trading arrangements (RTAs) nor bilateral agreements will benefit India compared to the equitable and rule-bound multilateral World Trade Organisation (WTO) regime, Mr. Nripendra Mishra, Special Secretary in the Commerce Ministry, said here.

India, which continues to have high tariffs, would be forced to reduce them to near-zero levels under RTAs, which at present accounted for 62 per cent of world trade. Similarly, India would face pressure from the ``big brother'' under bilateral agreements, as in the case of a recent offer by the EU to conclude a separate agreement on textiles in return for lowering of tariffs, which India has rightly rejected, Mr. Mishra said here.

Participating in a seminar on ``WTO agreements - implications for India'', organised by ICC India, the Indian Office of the International Chamber of Commerce, Paris, and the Southern India Chamber of Commerce and Industry (SICCI), Mr. Mishra said it was the ``inward looking and protectionist'' approach adopted by India in the Uruguay Round which had resulted in its attempt to preserve existing arrangements rather than take advantage of the opportunities that the negotiations offered for expanding India's share in world trade.

India failed to force reduction in the agricultural subsidies totalling $340 billion extended by developed countries or get protection by way of geographical appellation for basmati rice and Darjeeling tea, preoccupied as it was with preserving quantitative restrictions (QRs) on imports on balance-of-payments grounds and textile export quotas. Mr. Mishra warned that industry should not rely on ``defensive measures'' (namely, anti- dumping, countervailing and safeguard duties on imports) except as a last resort but adopt a ``proactive'' and positive approach by identifying areas where free trade and market opening by other countries could work to India's advantage.

Mr. L. V. Saptharishi, Additional Secretary and Authority-Anti- Dumping, Ministry of Commerce, said it was time businesses understood reciprocity as the basis of expansion of international trade, while anti-dumping duties were a ``double-edged weapon''.

Mr. R. Gopalan, Joint Secretary-Anti-Dumping, said final anti- dumping duty had been levied in 20 cases during 2000-01, compared to nine cases in 1999-2000. The time taken for levy of provisional duty had been reduced to less than four months. Mr. V. Lakhmikumaran, consultant, said levy of anti-dumping duty on exporters to any market could be taken advantage of by other exporters to fill the vacuum created by the affected parties by adopting the right pricing strategy.

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Section  : Business
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