The United States
and the European Union (EU) have assured India of their commitment
to the phase out of textile quotas and integration of textiles
into the multilateral trading regime by the scheduled deadline
of 31st December, 2004. In other words, from 1st January 2005,
there will be no quota restrictions on textile exports. This
assurance was given by both Mr. Robert Zoellick, the United
States Trade Representative (USTR) and Mr. Pascal Lamy, the
EC Trade Commissioner, at separate bilateral meetings with Mr.
Arun Jaitley, Minister of Commerce & Industry and Law &
Justice, in Tokyo today, when Mr. Jaitley strongly took up several
market access issues of concern to India with the US and the
EU and underlined that there should be no reopening of the textile
quota phase out issue.
The Minister also
took up with Mr. Zoellick India’s concern over the proposed
New Jersey legislation which could have serious implications
for the Indian software industry by imposing restrictions on
outsourcing of business operations to overseas countries including
India as well as the issue of the proposed anti-subsidy and
anti-dumping trade measure against Indian sea food. Mr. Jaitley
pointed out that the US market was very important for India’s
seafood exports and the proposed action would adversely affect
Indian exports. Mr. Zoellick noted India’s concerns and promised
to look into these issues raised by the Minister. The scope
for cooperation in the area of services between India and the
US also figured in the discussions.
During discussions
with Pascal Lamy, Mr. Jaitley raised the issue of grant of GSP
(Generalised System of Preferences) concessions to textiles
under the drug window waiver to some countries, which is estimated
to have entailed a loss of nearly US $ 300 million for Indian
garment exports. India has moved the World Trade Organisation
(WTO) for the setting up of a dispute settlement panel on this
issue.
The Minister also
had an exchange of views at separate bilaterals with the Trade
& Industry Minister of Kenya, Mukhisa Kituyi and the Minister
of Foreign Trade, Development and Industry, Mr. Luiz Fernando
Furlan. The Kenyan Minister recalled Kenya’s traditional ties
with India and areas of common interest in the WTO negotiations
including agriculture and non-agricultural issues. He evinced
interest in promotion of joint ventures with India for the production
and supply of drugs. The Brazilian Minister emphasised the commonality
of interests between India and Brazil and the intention to work
together in the ongoing WTO negotiations. It was also agreed
to intensify relations between India and the MERCOSUR (a regional
trading group consisting of Brazil, Argentina, Uruguay and Paraguay).
In this context, it was indicated that discussions will be held
in April on a possible preferential trading arrangement between
India and the MERCOSUR countries.
