15th February, 2003
Ministry of Commerce & Industry  


INDIA ASSERTIVE ON GREATER MARKET ACCESS FOR ITS GOODS AND SERVICES

JAITLEY SPEAKS AT TOKYO MINI MINISTERIAL ON NON-AGRICULTURAL MARKET ACCESS

ASSERTS PRIMACY OF IMPLEMENTATION AND S&D ISSUES


India today strongly asserted its interest in securing greater market access for its goods and services in several sectors in the ongoing negotiations on Market Access in Non-agricultural products. Participating in the Session on Market Access in Non-agricultural Products at the informal meeting of the World Trade Organisation (WTO) trade ministers in Tokyo today, Shri Jaitley spoke of the high priority that India attaches to achieving significant increase in market access for products of interest to developing countries including India, such as textiles and leather.

He made the important point that the modalities for negotiations on Market
Access in Non-Agricultural Products must fully factor in the need of developing countries for a more flexible use of tariff protection to assist their economic development as also to meet their special needs for maintaining tariffs for revenue purposes, as specifically recognised in the Doha Ministerial Declaration. Pointing out that India had been autonomously liberalising its tariffs, the Minister regretted that the various proposals based on the Swiss formula floated by different countries did not take into account the principle of less-than-full reciprocity in tariff reduction commitments by developing countries. He suggested that instead it would be better to use a simple reduction technique from bound tariffs in a phased manner so as to fully take care of the concerns of developing countries in terms of their revenue considerations and the requirements of their sensitive employment generating sectors. Shri Jaitley emphasised that for India, with its diverse industrial base covering many products and different levels of technology, the development aspect in working out the modalities for Non-Agricultural Products Market Access negotiations would be vital.

Intervening in the discussion on Implementation issues and Special and
Differential (S&D) Treatment, Shri Jaitley joined issue with some developed
countries' participants by strongly refuting their criticism that S&D and
Implementation issues were not matters of substance but of tactics. He made it clear that Implementation and S&D issues were integral parts of the package finalised at Doha as would be evident from a reading of the Doha Ministerial Declaration (Para 12) and cautioned that any attempt to renege from these commitments would mean unravelling of the Doha package. Citing specific examples of Implementation issues of great significance to developing countries, Shri Jaitley gave the examples of operationalisation of Article 15 of the WTO Anti-Dumping Agreement which provided for constructive remedies in anti-dumping cases for developing countries; the Agreement on Customs Valuation provisions to facilitate exchange of information in order to check under-invoicing of imported goods and several other areas where concrete examples had been submitted to WTO bodies but no progress had been made due to resistance from the developed countries. The same situation prevailed in respect of S&D provisions of WTO Agreements on Sanitary and Phytosanitary Measures; Subsidies and Countervailing Measures; Technical Barriers to Trade; Dispute Settlement and others which were of considerable commercial importance to developing countries.

"We cannot accept the view that issues of concern to developing countries
are less important than other issues or that there is a hierarchy of issues in the WTO and that Implementation and the S&D issues come lower down in the hierarchy. The WTO Agreements constitute a set of rules for facilitating trade and Implementation issues relate to perceived imbalances and asymmetries in the rules. We are not referring to new S&D issues, arising out of any forthcoming negotiations but the existing S&D issues which are already incorporated in the Uruguay Round Agreement and the Doha Ministerial Declaration" as the tangible benefits that had been expected for developing countries from such provisions had not really materialised, Shri Jaitley said.