In its recent submission to the WTO secretariat, New Delhi had reiterated that no export subsidies were being provided for textile and apparel products under various schemes of the current export and import policy.
Washington’s request to the secretariat for determining the export competitiveness of these products for phasing out concessions under the WTO Agreement on Subsidies and Countervailing Measures (ASCM) was therefore unjustified.
India against tariff elimination on industrial products
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NEW DELHI: INDIA has decided to oppose any move to impose mandatory tariff elimination across-the-board on industrial products at the WTO ministerial meeting at Cancun. ‘‘We will resist imposition of across-the-board mandatory tariff elimination on industrial goods at the forthcoming ministerial rounds in WTO,’’ secretary, Department of Industrial Policy and Promotion, Rajeeva Ratna Shah said. While addressing the annual convention of Automotive Components Manufacturers Association (ACMA), Shah said, ‘‘The country would also press for less than reciprocal tariff reduction in comparison with developed countries.’’ |
Washington wanted the export competitiveness of all Indian textile and apparel products to be determined on the basis of a computation undertaken by the secretariat in accordance with Article 27.6(B) of the above agreement. Subsequently, New Delhi had sought clarifications from Washington, following doubts whether the computation asked for by it should be made on the basis of two, four or six digit tariff lines.
Textiles ministry officials, however, see in Washington’s move an attempt to target schemes such as the duty entitlement passbook scheme (DEPB) and the export promotion capital goods scheme on grounds that exports under these have been subsidised.
They explain that India’s eight-year transition period for gaining export competitiveness and removal of all subsidies under the above agreement is due to end by December 31, 2003. However, Article 27.4 of the agreement allows extension of the period for certain subsidies provided by developing country members with due notification to the SCM committee.