The Hindu : Pascal Lamy to discuss multilateral trade issues

Online edition of India's National Newspaper
Thursday, Mar 06, 2003

Business

Business

Pascal Lamy to discuss multilateral trade issues

By Our Special Correspondent

NEW DELHI MARCH. 5. Multilateral trade issues especially the resolution of TRIPs and the linkage with public health are expected to be the main focus of talks during next week's two day visit of European Union Trade Commissioner Pascal Lamy. The visit is aimed primarily at reducing the convergence in views on key issues between the EU and India in the run up to the Cancun ministerial conference of the World Trade Organisation (WTO).

Disclosing this here today, the European Commission Ambassador Michel Caillouet said the EU's position on TRIPs is close to that of India which is not widely appreciated in this country as it is usually described in simple North-South divide terms. In actual fact, the EU's stance on TRIPs was largely in tune with India, he pointed out.

Mr. Lamy, who views India as a key interlocutor in the negotiations as part of the Doha Development Agenda, has been visiting this country at least once a year to bring about a greater convergence between the EU and India.

The EC Ambassador conceded the Tokyo mini-ministerial conference was not much of a success and even felt that "the picture was a bit dark at present'' in terms of reaching a consensus in time for the Cancun ministerial conference in September. Even so, he felt EU might not find much difficulty in reaching common ground with India, which was considered one of the six or seven key countries as far as the Doha development agenda was concerned. For instance, on services where the EU has yet to have its draft proposals cleared by the WTO general council, the position was more or less in line with India's demand for liberalisation of movement of natural persons under mode 3 and 4.

As far as TRIPs and public health is concerned, he felt those opposed to it like the U.S. might have to rethink their position and a decision on this issue could pave the way for a resolution on special and differential (S and D) treatment issues which had been close to the heart of the developing countries. On S and D too he felt the EU was largely in agreement with the views of the South.

In the case of agriculture where the EU is seeking protection for its huge subsides, he felt India might find some complementarity of views in view of the need for subsidies to the agriculture sector in this country. On the Singapore issues also, he felt their introduction would reflect the complex new trade fabric and rejected the view that these had little to do with actual trade issues.

Mr. Lamy will also discuss bilateral trade issues including the need for greater market access for wines and spirits as well as the need for a maritime transport agreement. The EU welcomed the latest budget decision to cut import tariffs on wines and spirits but felt this was not enough.

On the Indian side, the contentious bilateral issues relate to relaxation of textile quotas, and problems linked to sanitary and phyto sanitary measures as well as higher GSP concessions to Pakistan.

In the case of wine, he explained that though the basic customs duty has come down to 166 per cent in the budget, customs duty ranges from 230 per cent to 500 per cent making cheaper varieties of imported liquor expensive.

Apart from wide-ranging discussions on WTO issues with the Commerce Minister, Arun Jaitley, and the Agriculture Minister, Ajit Singh, the EU Trade Commissioner will hold bilateral discussions with the Deputy Prime Minister, L. K. Advani, and the Finance Minister, Jaswant Singh. He would also be meeting the senior Congress leader Manmohan Singh besides having interactive meetings with business chambers and consumer organisations.

Printer friendly page
Send this article to Friends by E-Mail

Business