13th March, 2003
Ministry of Commerce & Industry  


DOHA ROUND MUST ADDRESS INDIA’S CONCERNS – JAITLEY

PASCAL LAMY MEETS ARUN JAITLEY – SIGNALS EU’s WILLINGNESS TO MOVE FORWARD ON AREAS OF INDIA’s CONCERN


Shri Arun Jaitley, Union Minister of Commerce & Industry and Law & Justice, has said that India’s concerns in the area of market access including less than full reciprocity in tariff reduction commitments and other Special & Differential (S&D) Treatment provisions for the developing countries must be addressed on priority in the current round of multilateral trade negotiations. A wide range of multilateral and bilateral trade issues were discussed when the European Union Trade Commissioner, Mr. Pascal Lamy, met Shri Jaitley here this morning. Mr. Lamy signalled the EU’s willingness to move forward on a number of areas of concern to India including modalities for agriculture and non-agriculture market access; movement of natural persons under Mode-4 and textiles. Mr. Lamy reiterated the EU’s commitment to the phase out of textile quotas by the end of 2004 as mandated and noted EU’s common position with India on TRIPs and Public Health.

Outlining India’s priorities, Shri Jaitley pointed out that despite some broad areas of convergence, India had domestic concerns which were not necessarily dictated by politics but by social reality and cited the example of agriculture in India where each product could affect the lives of millions of people dependent on agriculture for their livelihood. In the non-agricultural sector, he mentioned the autonomous process of tariff reduction whereby the peak tariffs in India had been reduced to around 25% while underlining that the extent of reduction by the developed and developing countries would have to be different with built-in mechanism for special safeguards for developing countries like India. Mr. Lamy said that the EU would be willing to consider the specific formula being worked out by India for the developing countries in this regard. "We are ready to move on things which are important to you even if there are technical problems here and there on S&D treatment and Implementation Issues", Mr. Lamy said.

On textiles, it was indicated that bilateral discussions would take place shortly on a new textile package covering the issues of enhanced quotas etc. On the GSP issue, Secretary (Textiles), Shri S.B. Mohapatra gave figures to show that India’s exports to the EU had been affected by the GSP concession being extended to competitors. Mr. Lamy tried to explain on the basis of the EU data that India had not lost its market share but rather its textile exports to the EU had increased and, therefore, the GSP matter had not affected India’s trade with the EU. However, he also said that Pakistan was likely to graduate – beyond the threshold level of exports – in the near future.