Indo-US bilateral textile issues resolved

New Delhi, September 20: Long pending issues relating to the binding of textile tariffs has finally been resolved following an MoU between...

New Delhi, September 20: Long pending issues relating to the binding of textile tariffs has finally been resolved following an MoU between India and the United States last week.

As per the agreement, USA has also agreed to restore GSP concessions for 9 cotton handloom fabrics items from India. The US has also agreed to hold consultations prior to quota adjustments following the implementation of product integration commitment, effective January 1, 2002. This is expected to completely protect the export interests of the Indian textile and garment industry.

Under the MoU on tariff bindings, signed way back in 1994, USA extended certain concessions to India that included removal of Quantitative Restrictions (QRs) on certain textile items and an increase in the base level limits and flexibilities in certain other textile items.

According to that India was supposed to remove QRs on textile items in a phased manner and to offer tariff bindings on 396 textile items. While India removed its QRs before schedule, the issue of tariff binding remained pending for quite some time, becoming a major irritant in Indo-US trade relations. Now, with the signing of the MoU, Indian textiles industry would be able to gain greater market access in the US.