Govt may seek President nod for global commitments

Following recommendation by the Union cabinet, the President had dissolved the Lok Sabha yesterday. Hegde also took up the issue with the Finance Minister Yashwant Sinha to find way for fulfilling India8217;s commitment, particularly relating to various trade issues under the World Trade Organisation.

India has time uptill June 8 to move WTO8217;s appellate body to contest the verdict given by dispute settlement panel DSP that India8217;s restrictions on imports on the grounds of Balance ofPayments BoP were not maintainable.

The Union cabinet had taken up the issue earlier this month for discussion but no decision could be taken, sources said.

Commerce ministry sources said government had fell at a wrong time, particularly when it had to prepare for the WTO ministerial round talks to be held in November at Seattle in the US.

quot;We have to bring about a common ground among various developing countries, particularly SAARC and G-15 nations,quot; sources said. Though talks were on among SAARC nations, a common approach was yet to be formulated, they said.

India has also agreed to host a G-15 meeting here to evolve a common approach to the ministerial round talks.

While developed nations, led by the European Union, are pressing for fresh round of negotiations at the talks, India and other developing countries have opposed any new talks until commitments regarding special and differential treatment for third world nations are fulfilled by the industrialised countries.

The sources pointed outthat there was nothing wrong in fulfilling the commitments or take a stance since such a thing had happened in the past also.

In March 1998, when India was to give a commitment to WTO on fulfilling a final ruling on extending legal cover for innovations in the field of agro-chemicals and pharmaceuticals, the Gujral government, then as a caretaker, had assured the multi-lateral trade body that the country would have a legally-backed Patent Act before April 19 this year.

Besides, government will also have to go ahead and implement the historic Indo-Sri Lanka agreement. The pact, which was to have come into effect in March, has already been delayed due to differences as India was not ready to allow duty-free import of tea from Sri Lanka.

A via-media had been found and both the governments were scheduled to go ahead with the talks and announce the implementation before which the Vajpayee government fell.

Meanwhile, Hegde said customs notifications giving effect to Exim policy modifications announced onMarch 31 would be issued soon. quot;We have already announced the Exim policy modifications. Work will go on to issue the notifications. The finance minister has agreed,quot; he said. Sources said it could be issued before the week-end.

Asked about the effect of Lok Sabha dissolution on the economy, particularly depreciation of the rupee against the dollar, Hegde said political instability had not had any effect on the rupee. quot;There is no noticeable effect on the rupee. The value ha not changed,quot; he said. However, the Sensex had dipped quot;purely due to speculationquot;, Hegde added.