30th July, 2003
Ministry of Textiles  


PROTECTION TO INDIAN GARMENT EXPORTERS IN WTO


RAJYA SABHA

Government have been taking appropriate steps to protect the interests of Indian textiles export industry including garments in the WTO. Some of the recent steps taken are given below:

(i) India has raised a dispute under the Dispute Settlement Mechanism of WTO challenging the zero customs duty concession accorded by European Communities to the ready-made garments and made-up articles originating from some of our competing countries under the special tariff arrangements to combat drug protection and trafficking of its new GSP Scheme, which are perceived by India to cause adverse trade effects on our industry.

(ii) The United Stated had on 31st January 2003 requested WTO’s Committee on Subsidies and Countervailing Measures that the export competitiveness of textile and apparel exports from India be determined on the basis of a computation undertaken by the WTO Secretariat in accordance with Article 27.6 (b) of the Agreement on Subsidies and Countervailing Measures. The products for which the request was made included all textiles and apparel products under Harmonized System Nomenclature chapters 50-59 and 60-63. India has sought certain clarifications from the WTO Secretariat in this regard.

(iii) India along with certain members of International Textiles & Clothing Bureau (ITCB) made a submission in the WTO General Council for availability of flexibility of ‘Carry-Forward’ of quotas in the year 2004.

(iv) India along with other ITCB members raised the issue inter-alia of advancing the application of higher "growth-on-growth" factor of 27% w.e.f. 1st Janaury 2000, which was otherwise under the Agreement on Textiles & Clothing (ATC) to be applied on 1st January 2002. However, no recommendations could be forwarded by the Council for Trade in Goods to the General Council in this regard.

This information was given by the Minister of State for Textiles Shri Basanagouda Patil (Yatnal) in a written reply in the Rajya Sabha today.

 

 
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