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RUDY CALLS FOR EXPANSION OF ECONOMIC COOPERATION BETWEEN INDIA AND KENYA

4th JOINT TRADE COMMITTEE MEETING STARTED IN NAIROBI

New Delhi: November 30, 2001

Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, has called for expansion and enrichment of economic cooperation between India and Kenya. He said small scale industries can prove to be the growth engine for the improvement of trade between both countries. Inaugurating 4th Indo-Kenya Joint Trade Meeting (JTC) in Nairobi yesterday, Shri Rudy assured Kenya that India is ready to assist Kenya in the development of small scale industries, in agriculture; agro based manufacturing sector, electronics & computer software, power generation and in the human resource development efforts. Mr. Mohamed Abdi Mahamud, Assistant Minister for Trade & Industry represented the Kenyan side in this meeting.

Shri Rudy said that bilateral trade with Kenya is picking up after a slump in the previous year and informed that India could offer a large number of items, especially capital goods and pharmaceuticals which Kenya at present is sourcing from Western countries, at very competitive prices. The Indian Minister asked Kenyan exporters to actively market their products in India through participation in trade fairs and by mounting trade delegations, in view of India's liberalised import policy as per the WTO requirements. Shri Rudy informed that many Indian companies have specialised in anti-retrovial drugs for the treatment of AIDS patients at a very low price and asked Kenyan Minister to explore this option of importing generic version of these drugs

Shri Rudy had a meeting with Dr.Paul Awiti, Kenyan Minister for Planning in which he said that India possesses expertise in the field of planning, project monitoring and implementation and offered India's help in training in these fields. The JTC meeting reviewed the Minutes of 3rd meeting and new areas of cooperation in Tourism, Economic & Financial Services, Power, Pharmaceuticals were discussed.

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INDIA & CHINA SHOULD WORK CLOSELY ON MULTILATERAL ISSEUS, SAYS MARAN

CHINESE DELEGATION CALLED ON MARAN

New Delhi: November 30, 2001

India and China should work closely on multilateral issues including WTO and there should be greater cooperation among business communities of both the countries. This was stated by Shri Murasoli Maran, Minister of Commerce & Industry, in a meeting with Chinese delegation led by Prof Li Yining, Vice President of Chinese Association for International Understanding, here today. Shri Maran said there is a need to institutionalise the bilateral cooperation to exploit the huge potential of trade between both the countries. Shri Maran said that the expertise and experience India has in multilateral trading system could be shared with China in view of China's entry into WTO. He said the Doha summit was termed famous because of China's accession into WTO and also for India's efforts to unite developing countries. Shri Maran pointed out that both India and China jointly have 2/3rd of the world population and should work together in safeguarding their interests. The Chinese side thanked for India's support for China's entry into WTO and said both the countries have common interests in WTO. Both the sides discussed the issues of bilateral economic cooperation and in particular about the Special Economic Zones (SEZs).

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INDO-SLOVAK TRADE POISED FOR EXPANSION -- NEW AREAS OF COOPERATION IDENTIFIED

INDO-SLOVAK JOINT COMMITTEE MEETING HELD

New Delhi: November 29, 2001

India and Slovakia have agreed to further expand and diversify bilateral trade on a mutually beneficial and balanced basis. To this end, both sides have agreed to make concrete efforts for stepping up trade through joint ventures, production cooperation and technology transfer. This is indicated in the Protocol of the 4th Session of the Indo-Slovak Joint Committee on Economic and Commercial Cooperation, which was signed here today by Shri Nripendra Misra, Special Secretary, Department of Commerce, Ministry of Commerce & Industry as well as co-chairman of the Joint Committee from the Indian side and by Mr. Peter Brno, State Secretary, Ministry of Economy of Slovakia and co-chairman of the Joint Committee from the Slovak's side on behalf of their respective governments. The volume of trade between India and the Slovak Republic (formerly part of Czechoslovakia) is presently far below its potential and stood at around US $ 16 million in 2001. Earlier, during the inaugural session of the Joint Committee, both Shri Misra and Mr. Brno highlighted ways and means of augmenting trade and economic relations through various means including third country exports. Shri Misra emphasised that augmentation of the basket of commodities for trade should become the primary focus. Mr. Brno also indicated the possibility of Slovakia joining the European Union (EU) by the year 2004. Mr. Brno along with his delegation also called on Dr Raman Singh, Minister of State for Commerce & Industry and discussed possibilities of greater industrial cooperation between India and Slovakia.

While exchanging information on items of export interest to both sides, the Committee took note of India's request for activating efforts to increase Indian exports in non-traditional or niche product groups such as engineering; software & information technology; electronics; plastics; packaging; chemicals & pharmaceuticals; medical equipment; food processing etc. The Indian side also requested for streamlining of registration procedures for Indian drugs & pharmaceutical products in the Slovak Republic. In response to India's suggestion to Slovakia to source its requirements of fabrics and yarn from India, it was agreed that buyer-seller meets and Expos would be organised in Slovakia with participation from both sides. The scope for cooperation in industry (especially engineering and metallurgical); textiles; chemicals, petrochemicals & pharmaceuticals; tourism; agriculture; energy; electronics & software/information technology; telecommunications etc. was noted and specific areas of cooperation in these sectors have been identified.

Both sides have agreed to hold another round of negotiations for early finalisation and signing of a Bilateral Investment Promotion & Protection Agreement. Further, both sides have agreed to sign the Agreement on Avoidance of Double Taxation between India and the Slovak Republic at the earliest.

During the inaugural session, Shri Nripendra Misra noted that the new banking protocols for division of the rupee balances between the Slovak and Czech Republic had been signed and said that this would settle the long outstanding problem of liquidation of the Non-Convertible Rupee Balances. He also stressed the need to strengthen institutional linkages between the trade and industry organisations of the two countries which would bring benefits to both sides and in this context, welcomed the plans of the Slovak trade to open an office in India.

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DUMPING OF CHEAP VEGETABLE OILS FROM NEPAL

New Delhi: November 27, 2001

The Government of India are aware of the increasing imports of vegetable oils from Nepal under Indo-Nepal Treaty of Trade, as modified in December 1996, which provides for access to the Indian market for the articles manufactured in Nepal without payment of customs duty and without quantitative restriction irrespective of the sourcing of the raw materials. The imports of vegetable oils from Nepal have increased from a negligible quantity of less than 70 metric tonnes in 1996-97 to 54,102 metric tonnes in 1999-2001 and 90,951 metric tonnes in 2000-2001 (April 2000-February 2001).

As provided under the Treaty, the process of consultation with His Majesty's Government of Nepal for taking appropriate measures to address the concerns of Indian industry has been initiated. Keeping in view the interests of our industry, steps are also being taken to make suitable modifications in the Indo-Nepal Treaty of Trade which is due for renewal by December 5, 2001. This information was given by Shri Rajiv Pratap Rudy, Minister of State for Commerce and Industry, in a written reply in the Rajya Sabha today.

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INDIA MOOTS CREATION OF FOOD SECURITY BOX

New Delhi: November 27, 2001

India in its proposals submitted to the WTO for the ongoing negotiations under the Agreement on Agriculture, has demanded creation of a "Food Security Box" so as to take care of its food security and livelihood concerns and has, inter-alia, sought sufficient flexibility for domestic policy measures taken by the developing country members for alleviation of poverty, rural development, rural employment and diversification of agriculture. A group of developing countries, namely, Cuba, Dominican Republic, Honduras, Pakistan, Haiti, Nicaragua, Kenya, Uganda, Zimbabwe, Sri Lanka, Al Salvador, Peru have also mooted a proposal for a 'Development Box' which also basically aims for flexibility for developing countries to safeguard food security and rural development. The negotiations, which began from January 2000, are scheduled to conclude by January 2005. The Doha Ministerial Declaration of 14th November, 2001 has also acknowledged the development needs of developing countries including food security and rural development. This information was given by Shri Rajiv Pratap Rudy, Minister of State for Commerce and Industry, in a written reply in the Rajya Sabha today.

There are no differential provisions in the WTO based on gender. However, the need for preserving flexibility in domestic policy measures to preserve and enhance rural development in developing countries, which would also benefit women in rural areas, has also been highlighted by India in the ongoing negotiations on agriculture, Shri Rudy said.

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INDIA'S EXPORT SHARE IN WORLD TRADE 0.6%

New Delhi: November 27, 2001

As per the WTO Report, the share of India's merchandise exports is 0.67% during the year 2000. This information was given by Shri Rajiv Pratap Rudy, Minister of State for Commerce and Industry, in a written reply in the Rajya Sabha today.

Several measures to boost exports have been taken in order to provide competitive edge to Indian goods in the global market. The measures include reduction in transaction costs through decentralisation, simplification of procedures and various other measures as enumerated in the Exim Policy. Steps have also been taken to promote exports through multilateral and bilateral initiatives, identification of thrust sectors and focus regions, setting up of Special Economic Zones (SEZs). Besides these, the measures announced in the new Exim Policy 2001-2002, inter-alia, include promotion of agricultural exports, market access initiative, setting up business-cum-trade facilitation centre etc. Some of the recent measures taken to promote exports include reduction in the export credit rate for both pre-shipment and post-shipment, special financial package to manufacturer exporters with an export contract of Rs.100 crore or above for a period of one year from October 2001, extension of normal repatriation period from 180 days to 360 days for exports made to Latin American Countries (LAC) for a period of one year and upward revision of duty drawback rates on a number of product groups. Export performance is constantly being monitored and measures are being taken to reduce the trade deficit, Shri Rudy said.

In reply to another question, Shri Rudy said that India-China trade has registered a growth of 24.46% during April-July 2001 as compared to the corresponding period of last year. Indian exports to China have registered a growth of 25.27% while Indian imports from China have registered a growth of 24.03% during April-July 2001 as compared to April-July 2000.

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Business opportunities to increase with Romania

Romanian Delegation called on Rudy

New Delhi: November 27, 2001

The opportunities for Indo-Romanian Joint Venture exist in the areas of software, textiles, food processing, light consumer goods and cold storage units for fruits & vegetables. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, said this in a meeting here with Mr. Ghiorghi Prisacaru, Chairman of the Foreign Policy Committee of the Romanian Senate, yesterday evening. Shri Rudy said that the continued high level dialogue between India and Romania on matters of Trade & Economy is a welcome development and both sides should explore new opportunities to increase the bilateral trade from the current level. Shri Rudy said that Indian economy is emerging as a strong Asian economy and major emerging market and asked the Romanian side to take pro-active measures to promote exports of Indian goods and services to Romania in the interest of bilateral trade.

Shri Rudy highlighted the recent steps taken in India in the direction of further liberalisation of the economy and reiterated India’s commitment to liberalise the trade regime. Both the leaders discussed the issue of absence of proper institutional and banking arrangement between the two countries. In this context Shri Rudy suggested the Romanian side to utilise the financial arrangement developed by the EXIM Bank of India with the European Bank for Reconstruction & Development (EBRD), which could facilitate recognition of Letter of Credits (LCs) issued by such banks is foreign countries, which do not have correspondent arrangement with the Indian banks. Shri Rudy informed that a negotiation in respect of the Double Taxation Avoidance Agreement is in advanced stage and the Maritime Transport Agreement & Sanitary Veterinary Agreement are in the final stages of conclusion. Shri Rudy said that these steps indicate a very positive desire on both sides to move in the forward direction and would contribute to a great extent in providing a fillip to the bilateral cooperation.

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Rudy leaves for Kenya

Joint Trade Committee to meet at Nairobi on 29-30th November

New Delhi: November 27, 2001

Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, is leaving for Kenya today for the 4th meeting of Joint Trade Committee (JTC) to be held at Nairobi (Kenya) on 29-30th November, 2001. The Indian delegation led by Shri Rudy includes Shri Gurjeet Singh, Joint Secretary, Ministry of External Affairs and Dr. A.R. Goyal, Deputy Secretary, Department of Commerce. Shri R.K. Bhatia, High Commissioner of India and Shri L.D. Ralte, Deputy High Commissioner of India to Kenya would also join the Indian delegation at Nairobi.

During the visit the Indian side would offer Kenya cooperation in power, telecom sector and cooperation in drugs and pharmaceuticals. Besides a MOU is also likely to be signed between both the countries in the areas of electronics and computer software. Kenyan delegation would be led by Mr. Mohamad Abdi Mahamud, Assistant Minister for Trade & Industry. Shri Rudy would call on Kenyan Minister for Planning and also the Transport & Communications Minister during his visit. India’s exports to Kenya during 2000-2001 were Rs.636 crore registering a growth of around 22% over the previous year. The main items of India’s exports to Kenya are machinery & instruments, rubber manufactured products, manufactures of metals, glassware, inorganic and agro-chemicals etc. India’s imports from Kenya during 2000-2001 were around Rs85 crore. The principal items of imports are cashew nut, precious and semi-precious crude minerals and raw wool.

The Minister would also review the work done by the commercial wings of seven Indian Missions in Eastern African Countries in order to find ways and means to improve our trade with Kenya, Tanzania, Ethiopia, Uganda, Mauritius, Madagascar & Seychelles. Head of Indian Missions and Commercial Representatives from these seven countries would be participating in the meeting on 3rd December 2001 to be chaired by Shri Rudy.

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Declaration on TRIPS and Public Health is a Major Achievement  at Doha, says Rudy

New Delhi: November 23, 2001

A separate landmark declaration on TRIPS and Public health is a major achievement of Doha in which India played a key role. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, while addressing a special session on "WTO and the Doha Development Agenda" in the 2nd India-EU Business Summit, here yesterday. Shri Rudy pointed out that it recognised the affordability and availability of medicines as an universal right and it would enable member countries to take measures to protect public health as the Declaration recognises the flexibility under the TRIPS Agreement when dealing with public health problems such as HIV/AIDS, Malaria. Also present on the occasion were Shri Sanjiv Goenka, President of CII, Shri Chirayu Amin, President of FICCI and Ms. Annemie Neyts, Minister of State for Foreign Affairs of Belgium.

Shri Rudy said that the Doha Declaration that states clearly about attaching utmost importance to implementation concerns is recognition of India’s stand. The Minister said that the recognition given to food security and rural development needed to manifest itself in sufficient flexibility and safety nets in the farm sector. "As for the four Singapore Issues viz. Relationship between Trade and Investment, Interaction between Trade and Competition Policy, Transparency in Government Procurement and Trade Facilitation is a welcome development that the Ministerial Declaration provides for the study process to continue till the Fifth Ministerial Conference when a decision on negotiations will be taken on the basis of explicit consensus", said Shri Rudy. The Minister termed the Doha Declaration as a new beginning and said that unlike the Uruguay Round Agreements which had left behind a trail of bitterness and a feeling of inequity, it presents an opportunity to make amends.

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ESTABLISHMENT OF SPECIAL CELLS OF WTO IN STATES

New Delhi: November 23, 2001.

The State Governments of Andhra Pradesh, West Bengal, Madhya Pradesh, Karnataka, Delhi, Tripura, Nagaland, Haryana and the Union Territory of Dadra and Nagar Haveli have established the WTO Cells so far. The State Government of Punjab has also constituted a high powered committee to assess the impact of emerging WTO regime on Punjab economy. The Union Government have advised all the State Governments/Union Territories to set up WTO Cells and appoint nodal officers to effectively co-ordinate various WTO related matters. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today.

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Tourism to provide impetus to trade with China, says Rudy

Chinese Delegation called on Rudy

New Delhi: November 23, 2001.

Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, has said that the common background of Buddhist religion between India and China would help in providing impetus for tourism and thus helping to improve the bilateral trade. He said that India has necessary infrastructure in tourism to cater to the needs of tourists. While meeting the high powered delegation from China led by Mr. Sun Xiangjian, the Vice Mayor of Shenyang People’s Government, here today, Shri Rudy said that the frequent visits and high-level talks between two sides on matters of mutual interest for improvement of bilateral trade is a welcome development.

Shri Rudy informed the Chinese side about India’s Foreign Direct Investment (FDI) Policy and said that the Indian government is trying to build an atmosphere of transparency in FDI policy. He said that India has adopted open system for global tenders and asked the Chinese investors to invest in India. The Chinese leader spoke about Shenyang, which is the key industrial base in Northern China and the investment opportunities existed there in the fields of Pharmaceuticals, Automobiles, Electronics and Light Industry. Shri Rudy appreciated the growth achieved by China and said that the investment opportunities in new fields would benefit both the countries. Both the leaders discussed about the issues of Economic Relations, Trade & Investment, Tourism and Projects.

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ANTI-DUMPING DUTIES ON STEEL BY USA

New Delhi: November 23, 2001.

The government has been supporting the cause of Indian steel exporters. On US Department of Commerce imposing anti-dumping duty of 72.49% on cut-to-length carbon steel plate imports from India, the Indian government approached the Dispute Settlement Body of the WTO against the imposition of anti-dumping duty by USA. A panel has been constituted to examine the issues in this dispute and first submission by Government of India has been submitted before the Panel on 19th November, 2001, Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, said in a written reply in the Lok Sabha today.

In reply to another question, he said the US had lifted number of unilateral restrictions imposed on Indian companies by a final rule published in Federal Register Notification dated 1/10/2001. The entities that remain on the Entity List are:

Defence Research & Development Organisation (4 entities), Department of Atomic Energy (3 entities and all nuclear reactor activity related entities, including power plants) and Indian Space Research Organisation (8 entities).

Government has used every opportunity to convey to the US that all unilateral restrictions against India are unjustified and counterproductive and should be completely lifted, Shri Rudy said.

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BASMATI EXPORTS ON THE RISE

New Delhi: November 21, 2001

The total quantity and value of basmati rice exported during the last three years is as under:

Year

Quantity (MT)

Value (Rs. crore)

1998-99

597793

1876.91

1999-2000

638382

1780.34

2000-2001

848919

2141.94

(Source: DGCI&S, Calcutta)

Some of the steps taken to increase the export of basmati rice include conducting publicity campaigns, sending delegations abroad, participating in international trade fairs, inviting potential buyers and providing financial assistance to exporters for improving quality, packaging, brand promotion of products and for conducting market surveys.

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IMPACT OF NEW FDI PROPOSALS ON INDIGENOUS INDUSTRY

New Delhi: November 21, 2001

During the last two years (from 1.1.99 to 30.9.2001), a total number of 4900 FDI proposals involving FDI amounting to Rs.87994.41 crore have been approved. Consideration of FDI proposals is an ongoing process and there is no fixed year-wise target for receiving FDI. FDI also helps in enhancing domestic industry competitiveness by way of technology transfer, linkages with domestic suppliers, etc. This was stated by Dr. Raman Singh, Minister of State for Commerce & Industry, in a written reply in the Rajya Sabha yesterday.

In reply to another question, Dr. Raman Singh said: Under the new economic reforms, till September 2001, three proposals involving FDI of Rs.5077.82 lakh have been approved for Megalaya, including two proposals involving an investment of Rs.4477.82 lakh approved during the last three years, i.e., from January 1998 to September 2001.

The details of approvals are published in the monthly SIA newsletter brought out by Department of Industrial Policy and Promotion, which is widely circulated to various establishments, including the Parliament Library. This information is also posted in SIA Website (http://www/nic.in/indmin). The data regarding employment generation is not centrally maintained.

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STEEL IMPORT CURBS BY US: INDIA SUGGESTS COUNTRY SPECIFIC QUOTA

New Delhi: November 20, 2001

The government is aware of the ongoing safeguard investigations being conducted by US authorities on imports of broad range of steel products. On behalf of the Government of India a pre-hearing brief on remedy inter-alia containing certain suggestions including recommendation of a country-specific quota for India has been submitted to the concerned US authorities. While the US authorities have found injury to the domestic steel industry in respect of certain products, no reasons for the injury decision have been given. Government of India awaits the final report which is expected sometime in December this year. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, in a written reply in the Rajya Sabha today.

In reply to another question, Shri Rudy said that Indian exports to USA have declined. There is a perception that the terrorist strikes in USA and military retaliation could depress US economy thereby causing decline in Indian exports to USA. The Government of India is working closely with Export Promotion Councils and other Apex Organisations to promote exports to the USA, he said.

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QUALITY ADHERENCE MUST FOR EXPORTS IN WTO REGIME,  SAYS SAPTHARISHI

New Delhi: November 20, 2001

In the context of consumers putting pressure the industry sector must pay attention to the quality in the WTO regime. Shri L. V. Saptharishi, Additional Secretary, Ministry of Commerce & Industry, said this, while delivering presidential address in a seminar on ‘ WTO Regime and Export Certification in Food Sector’, organised by Export Inspection Council of India (EIC), here today. He said that in order to overcome the non-tariff barriers the scientific knowledge about product and processes has to be kept in mind by the industry. Shri D. P. Tripathi, Secretary, Ministry of Food Processing Industries and Ms. Shashi Sareen, Director, EIC were present in the seminar which was attended by the representatives of food industry.

Shri Saptharishi said that after the process of liberalisation has started in the early 90’s, the emphasis on quality has increased a lot. He said that in the WTO regime the role of quality has become important with importing countries demanding a high quality and safe product for their consumers. He added that many dimensions have come to be associated with quality and adherence to the quality is must for exporters. In this context the initial reservation of industry did not help but those who responded positively to this reaped the benefits, he said. Shri Saptharishi warned that consumer consciousness is going to dictate the terms in future and nothing will pass unless it is quality product.

Ms. Shashi Sareen explained the role and performance of the EIC and informed about the various activities initiated by EIC. The seminar provided an opportunity to the representatives of Indian food industry to understand the requirements of SPS Agreement and International Agreements. Industry representatives made the presentations on benefits of certification in marine products and dairy sectors in the seminar.

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IT & AGRO PRODUCTS CRUCIAL TO INCREASE TRADE WITH CHINA, SAYS RUDY

Chinese Trade Minister called on Shri Rudy

New Delhi: November 19, 2001

IT and software & agro products would prove vital to increase the trade with China and there is a need to strengthen mutual understanding at governmental level and business level. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, said this in a meeting with Chinese Vice Minister of Foreign Trade & Economic Cooperation Mr.Zhang Xiang, here today. Shri Rudy said that China is an important trading partner of India and we must strive to improve the present level of Indo-China bilateral trade in commensurate with the potential, given the size of the two countries. The senior officials attended the meeting from both the sides.

Shri Rudy said that the Indo-China trade amounted to US$ 2297.21 million during 2000-01 registering a growth of 25.84% and mentioned about the tremendous investment opportunities offered by Special Economic Zones (SEZs) being established in India. The Minister elaborated the potential for export of agro products and marine products, including fruits, vegetables, cooking oil, sea food etc.; plastic chemicals, metal and mineral ores, automobile components to China from India. Shri Rudy emphasised the capability of India in software sector and the specialisation Indian software companies have developed in banking, insurance, tourism etc.

The Visiting Minister talked about the excellent growth rate attained by China against the backdrop of global slowdown in economy and informed that his country has adopted pro-active fiscal policy and prudent monetary policy. Mr. Zhang Xiang appreciated India’s efforts in ensuring China’s entry in World Trade Organisation (WTO) and said that Indian companies can take advantage of opening up of Chinese trade sector after this entry.

Shri Rudy explained that India is maintaining transparency in trade practices when Chinese Minister raised the issue of anti-dumping cases against China by India. He said that India’s actions are never intended to single out China and the actions are in accordance with the principle and procedures laid down in our national law. He added that the two countries are complementary in terms of industrial structure and there should be more exchange of economic and technological aspects between two countries.

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MAJOR GAINS FOR INDIA AT DOHA MINISTERIAL CONFERENCE

New Delhi: November 15, 2001

India has made significant gains at the Doha Ministerial Conference of the World Trade Organisation (WTO) with the Ministerial Declaration launching a work programme which takes on board India's concerns in the key areas of Agriculture, Implementation, TRIPs, Trade & Transfer of Technology and WTO Rules. India has also succeeded in warding off any commitments for negotiations in the important areas of Investment, Competition Policy and Transparency in Government Procurement. This has been made possible through extremely hard bargaining on India's part during the Doha Ministerial Conference.

The development dimension of agriculture has received focussed attention with additional flexibility being given for providing domestic support and protection from imports on grounds of food security and rural development. Special & Differential Treatment for the developing countries in all the three areas of agriculture viz., market access, domestic support and export competition will now be an integral part of the negotiations on agriculture to enable the developing countries to take care of their development concerns. A commitment for phase-out of export subsidies by the developed countries has been secured in the Declaration. This would facilitate the Indian farmers' access to global markets by making Indian agriculture globally more competitive. There is also a commitment for substantial reduction in domestic subsidies and tariff levels maintained by the developing countries which have been causing distortions and protectionism in the world agricultural trade.

India's concerns relating to implementation of the existing WTO Agreements especially in the areas of textiles & clothing, agriculture, SPS (Sanitary & Phytosanitary) measures, subsidies & countervailing measures and anti-dumping are reflected in the Decision on Implementation-related issues and concerns adopted by the Doha Ministerial Conference. It has been agreed that negotiations on outstanding implementation issues will be an integral part of the work programme being established and will be addressed on priority basis by the relevant WTO bodies.

In the area of TRIPs, it has been decided that protection of traditional knowledge and the relationship between the TRIPs agreement and the convention on Biodiversity would be pursued in the work programme of the TRIPs Council. This is in line with our concern about the need for preventing bio-piracy and ensuring protection of the traditional knowledge of developing countries including India. Concerns relating to public health and access to medicines have already been addressed in the Declaration on the TRIPs Agreement and Public Health adopted by the Ministerial Conference which is a major achievement. The Declaration on TRIPs Agreement and Public Health has affirmed the Members' right to interpret and implement TRIPs in a manner supportive of the need to protect public health and to ensure access to medicines for all.

Further, it has been reaffirmed that provisions for special & differential treatment would be an integral part of the WTO Agreements, taking into account the specific constraints faced by the developing countries, including the least developed countries, regarding operation of the WTO agreements.

In order to increase the flows of technology to developing counties, a Working Group under the General Council of WTO will examine the relationship between trade and transfer of technology and the steps required in this regard. There are also firm commitments on technical cooperation and capacity building in the Ministerial Declaration in recognition of their importance as core elements in the development dimension of the multilateral trading system.

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INDIA DISAPPOINTED WITH REVISED DRAFT

MINISTERIAL DECLARATON

New Delhi: November 13, 2001

India has expressed its strong disappointment with the latest revised text of the Draft Ministerial Declaration of the Doha Ministerial Conference of the World Trade Organisation (WTO), which was circulated this morning, as the text has failed to reflect India’s concerns and demands in a substantial manner particularly in respect of Singapore Issues, Environment and Labour, and Implementation. Giving India’s response in an intervention at the meeting of the Committee of the Whole of the Doha Ministerial Conference at the Heads of Delegation level, Mr. Murasoli Maran, Minister of Commerce and Industry, Government of India, said that while India was very keen for the success of the Doha Ministerial, the very serious concerns and difficulties pointed out by several delegations including India had not been given due consideration and urged that the core concerns pointed out by India be taken on board.

On implementation, he reiterated India’s demand that outstanding implementation issues should be resolved on priority and the text should explicitly confirm the common understanding that outstanding implementation issues would be negotiated as part of a package or single undertaking. "The textiles tirets have now been put in square brackets. This causes us alarm", the Minister said.

On Singapore issues, such as investment, competition, etc., India has strongly urged that the ongoing study process in the Working Groups should continue and the Working Group reports may be made available to the Fifth Ministerial Conference.

India has repeated its strong objections to making any reference to Labour issues in the Doha Ministerial Declaration and its opposition to any widening of the environmental window in the WTO as the existing WTO rules provided enough flexibility to take care of environmental concerns. "My delegation is not in a position to accept the word ‘negotiations’ appearing anywhere in the text relating to ‘environment’ as there are strong apprehensions in my country that it would be used to legitimise protectionist measures taken in the name of environment", the Minister stressed while highlighting India’s major concerns.

Referring to negotiations for the extension of higher level of protection for geographical indications to additional products other than wines and spirits, which was one of the paras in the 26 September, 2001, the Minister said: "My delegation cannot accept a situation where the negotiations for providing higher level of G. I. protection is neither specifically provided for nor gets unambiguously covered under the resolution of the remaining Implementation Issues".

 

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INDIA SEEKS FLEXIBILITY IN TRIPS AGREEMENT TO ENSURE

ACCESS TO MEDICINES

New Delhi: November 11, 2001

In an intervention on TRIPS (Trade Related Intellectual Property Rights), India has said the Declaration on Intellectual Property and Access to Medicines (Public Health) should contain a political declaration that nothing in the TRIPS Agreement of the WTO shall prevent Members from taking measures to protect their public health concerns and the agreement should be interpreted and implemented in a manner which would ensure affordable access to medicines for all and support the Member country’s right to protect public health. In the intervention at a meeting of the Committee of the Whole of the Doha Ministerial Conference today, Mr. Murasoli Maran, Minister of Commerce and Industry, Government of India, reiterated that availability and affordability of essential medicines was a universal human right and the WTO should not deny that right.

"Global community has raised concerns regarding adverse implications of the TRIPS Agreement on affordable access to medicines. TRIPS Agreement should be part of the solution to address the public health crises and not the reason. The Draft Declaration on this issue should be titled as ‘Draft Declaration on TRIPS and Public Health’ is the main objective of public policy recognised in Article 8 of the TRIPS Agreement (of the WTO)", the Minister said.

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INDIA ASKS FOR COMPLETION OF STUDY PROCESS ON INVESTMENT, COMPETITION POLICY

New Delhi: November 11, 2001

India has asked for completion of the ongoing study process on Singapore issues i.e. investment, competition, transparency in government procurement and trade facilitation before going in for negotiations on these subjects. In an intervention on Singapore issues at the meeting of the Committee of Whole of the WTO Doha Ministerial Conference last evening, Mr. Murasoli Maran, Minister of Commerce and Industry, Government of India, said India was of the view that these issues should be studied further and such decisions should not be rushed. "The Singapore Declaration has stipulated ‘explicit consensus decisions’ are required particularly on Investment and Competition. We should not simply be coerced into taking decisions", he said. The continuation of the ongoing study process on these issues is important in view of the inadequate understanding of all its implications. Multilateral agreements on Investment and Competition policy would severely impact on our development policy by constraining our domestic policy options, he said.

Why should be go for a multilateral agreement on investment when the current framework of bilateral and regional agreements is working well and gives sufficient policy flexibility to host countries and the necessary protection to investors, he asked. Similarly, on Competition Policy, he wondered how it could be decided whether multilateral agreements on these subjects were needed even before the countries acquired sufficient experience and institutional maturity on these issues. Besides, he pointed out that in India a national Competition Law was still in the process of being enacted.

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INTERESTS OF DEVELOPING COUNTRIES SHOULD BE THE CENTRAL THEME OF WTO, MARAN TELLS THE DOHA MINISTERIAL

INDIA’S STATEMENT AT THE WTO MINISTERIAL

New Delhi: November 10, 2001

The needs and interests of the developing countries should be the central theme of all future activities of the World Trade Organisation (WTO), Mr. Murasoli Maran, Minister of Commerce and Industry, Government of India, said in his statement at the Plenary Session of the 4th Ministerial Conference of the WTO at Doha this morning. WTO must recognise the existing development deficit in various existing WTO agreements and take remedial action. WTO must also recognise that development strategy has to be related to country specific situations, the statement said, while stressing that the "one size fits all approach" had clearly failed to deliver.

The Minister said that the Draft Ministerial Declaration was neither fair nor just to the viewpoints of many developing countries including India on certain key issues. "After the setback at Seattle, all of us want Doha to be a success. Success, however, does not necessarily require over-reaching objectives or launch of a ‘comprehensive’ round. Also the global unity achieved in the wake of the most unfortunate and tragic event of September 11 should not be undermined by proposing an agenda, which would split the WTO membership. Rather than charting a divisive course in unknown waters, let this Conference provide a strong impetus to the on-going negotiations on agriculture and services, and the various mandated reviews that by themselves form a substantial work programme and have explicit consensus", he said.

Emphasising India’s concerns, Mr. Maran said that the asymmetries and imbalances in the Uruguay Round agreements, non-realisation of anticipated benefits and non-operational and non-binding nature of special and differential provisions had been the basis for implementational issues and concerns raised by a large number of developing countries right from 1998. Sincere efforts must be made at this Ministerial conference to resolve the outstanding implementation issues or give clear directions on how to deal with them, the Minister said and proposed that this should be the first item to be taken up for adoption of the decision on implementation issues. Highlighting India’s market access concerns, he said that "even after all the Uruguay Round concessions have been implemented by industrialised countries, significant trade barriers in the form of tariff peaks and tariff escalation continue to affect many developing country exports. These will clearly need to be squarely addressed. Meanwhile, sensitive industries in developing countries including small scale industries sustaining a large labour force cannot be allowed to be destroyed".

Referring to new issues or new agreements, Mr. Maran reiterated that these would extract new prices, for which the developing countries were hardly prepared. This was particularly relevant now since negotiations for agreement in several new areas were being proposed even while a study process in the Working Groups was going on. In the areas of Investment, Competition, Trade Facilitation and Transparency in Government Procurement, basic questions remained even on the need for a Multilateral agreement. The Singapore declaration adopted at the First Ministerial Conference of the WTO required an explicit consensus for any decision to move to negotiations on these new issues. "Let us, therefore, wait till an explicit consensus emerges on these issues", Mr. Maran said.

India firmly opposes any linkage between Trade and Labour standards. "On Environment, we are strongly opposed to the use of environmental measures for protectionist purposes and to imposition of unilateral trade restrictive measures. We are convinced that the existing WTO rules are adequate to deal with all legitimate environmental concerns. We should firmly resist negotiations in this area which are not desirable, now or later. We consider them as Trojan horses of protectionism" the statement said.

On TRIPS (Trade-Related Intellectual Property Rights), Mr. Maran said negotiations should be held for extending Geographical Indications to products (other than wines and spirits) which were of interest to India and many other countries and there should be no misappropriation of the biological and genetic resources and traditional knowledge of the developing countries. Further, the TRIPS Agreement should be interpreted and implemented in a manner that clearly supports the WTO member countries’ right to protect public health and ensure access to medicines for all.

Mr. Maran made it clear that India as also many other developing countries were not ready to accept a new set of onerous commitments. " WTO is for multilateral trading system only. It should not encompass the responsibility for rule making of non-trade related subjects. Globalisation and liberalisation have to be addressed at various fora and not in WTO alone. WTO is not a global government and should not attempt to appropriate to itself what legitimately falls in the domain of national governments and Parliaments. WTO’s core competence is in international trade and we would strongly urge that it stays that way. Then only we can save and strengthen the multilateral trading system." the statement said.

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MARAN KEEPS A HECTIC SCHEDULE AT DOHA

New Delhi: November 9, 2001

On arrival at Doha, as the Head of the Indian delegation to the Fourth Ministerial Conference of the World Trade Organisation (WTO), Mr. Murasoli Maran, initiated wide-ranging consultations with representatives of both the developing and developed countries before the inaugural of the Doha Ministerial Conference slated for later this evening. Mr. Maran has held meetings so far with Trade Ministers of Brazil, Singapore, Pakistan, Tanzania, Zimbabwe, Cuba and the 12 member group of Like Minded countries which includes Malaysia. He is also scheduled to meet the Ministers of the United Kingdom (UK), Canada, France and several other countries over the next two days.

These bilateral consultations focussed on India’s concerns on some of the contentious issues which are being proposed for negotiations in the WTO by some countries. Mr. Maran went into great details to explain to his counterparts the development implications of new trade issues such as Investment, Competition Policy, Trade facilitation and Transparency in Government Procurement (collectively known as the "Singapore issues"). During these consultations, Mr. Maran has also focussed a great deal on issues regarding the affordability and availability of medicines with reference to the TRIPS (Trade Related Intellectual Property Rights) Agreement. Upfront, Mr. Maran also made it clear that any further negotiations in Agriculture must take into account the special and differential treatment to developing countries, in particular the large agrarian economies like India and emphasised our food security and rural livelihood concerns.

Mr. Maran has also met Mr. Mike Moore, Director General-WTO and the Chairman of the Doha Conference, Mr. Yousef Hussain Kamal, the Qatari Minister of Finance, Economy and Trade regarding the organisation of the Ministerial Conference and impressed upon them the need for transparency in deliberations with a view to building confidence among the developing countries which was crucial for the success of the Doha Ministerial Conference. He also pointed out that the text of the revised Draft Ministerial Declaration forwarded by the Chairman of the General Council and the DG - WTO did not reflect the views and expressions of the developing country members like India and the lack of consensus on several issues.

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EXTENSION IN EXPORT OBLIGATION PERIOD ALLOWED

PRESS NOTE

The government has allowed extension in export obligation period in respect of advance licences issued on or after 1/4/1997 against execution of bank guarantee. Such bank guarantees shall be required to be executed within 60 days from the date of announcement. Exporters shall be allowed six months time to complete the export obligation.

Directorate General of Foreign Trade, Ministry of Commerce & Industry, New Delhi, dated 8th November, 2001

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AMENDMENTS/CORRECTIONS FOR EXISTING EXPORT ITEMS AND STANDARD INPUT-OUTPUT NORMS FOR NEW EXPORT ITEMS NOTIFIED

PRESS NOTE

The Directorate General of Foreign Trade (DGFT) have issued Public Notice No.45 dated 01/11/2001 notifying the amendments/corrections in the standard input-output norms for 38 existing export items and Standard input-output norms for 22 new export items. Of these 22 new norms, 10 norms relate to the chemicals & allied products; 11 norms to engineering products and 1 norm relate to food products.

Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, New Delhi, dated 8th November, 2001

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WTO Briefs

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WHY INDIA IS OPPOSING NEGOTIATIONS ON NEW ISSUES

New Delhi: November 7, 2001

India has been opposing negotiations on non-trade issues or new issues in the WTO which include issues like Investment, Competition Policy, Transparency in Government Procurement, Trade Facilitation, Environment and Labour. In a presentation on India's position on various WTO issues made at the Economic Editors Conference held last month and at subsequent interactions, the reasons for India's opposition to negotiations on new issues are detailed as below:

Investment

Any multilateral agreement may take away the right to screen investments at pre-establishment stage and may also curtail the flexibility available to developing countries in formulating FDI policies to fulfil their development policy objectives.

Existing BITs (Bilateral Investment Treaty)/BIPAs (Bilateral Investment Protection Agreement) are subject to domestic laws and regulations and are sufficient to take care of interests of both the investors and the host country;

Multilateral rules do not guarantee any increased investment flow to developing countries;

On the other hand, prescribing of minimum standards on labour, environment etc., might reduce investment inflows into developing countries;

Also, MIGA (Multilateral Investment Guarantee Agency) protects against all types of non-commercial risks;

As such no need to have any separate multilateral agreement in WTO. Trade rules not suitable for investment and WTO not the right forum; and

FDI could trigger BOP problems but no feasible safeguard like Art. XVIII-B of GATT as relevant to trade in goods in sight.

Competition Policy

Cross cutting nature of Competition Policy provisions might have implications for the flexibility negotiated in other agreements;

Developing countries like India have limited experience with domestic competition law and no experience in international cooperation;

Some countries even intend to bring governmental measures within its ambit;

No guarantee that multilateral rules will discipline RBPs/Export cartels etc.; and

Extra territorial reach is only though positive comity only through sharing of non-confidential information. May not be useful in cases that matter.

(NB: On both Investment and Competition Policy India has opposed even the "plurilateral approach" for the following reasons

As a tactical ploy, the developed countries are suggesting plurilateral approach for investment and competition policy;

A plurilateral agreement, once allowed within WTO, will not reflect the concerns of developing countries;

It will indirectly prove the necessity for such agreements within WTO;

The non-signatory members may acquire a negative image of not being investor-friendly;

Later on when a non-signatory wants or is forced to join such an agreement , there may not be any consideration for their concerns. It will create differentiated rights and obligations amongst the members; and

If Investment and Competition Policy can have opt out clause, why not TRIPs also.)

Transparency in Government Procurement

As of now procurement by government agencies for its use and not for commercial resale is exempted from national treatment obligation;

Elements as indicated by its proponents go beyond transparency and border on market access;

If a multilateral agreement is allowed within WTO, the development dimension of public procurement like infant industry protection, preferences to SSI, backward regions etc., may be got compromised; and

As of now there is no consensus in the Working Group on the likely elements of negotiations.

Trade Facilitation

WTO is not an appropriate forum -- elements of simplification and modernisation of customs procedures are already in the revised Kyoto Protocol;

For developing countries, tariff revenue is a very important component of overall revenues and as such adequate regulations and checks are necessary to ensure non-leakage of revenues;

Developing countries may face problems of technological capabilities and financial resources for a time bound implementation of commitments; and

Application of DSU (Dispute Settlement Undertaking) can be highly encompassing which is dangerous.

Environment

We cannot accept any negotiations on Environment since we are convinced that the existing WTO rules are adequate to protect all legitimate environmental concerns;

A Committee on Trade and Environment (CTE) has been functioning since 1995 and has the mandate to give recommendations on whether any modifications are required;

CTE has been working on a 10-point balance agenda having issues of interest like TRIPs and Environment, market access to developing countries, prohibition on sale of domestically prohibited goods etc.;

While the proponents of this issue want to "cherry pick" issues like precautionary principles, MEA (Multilateral Environment Agreements) compatibility with WTO, eco-labelling etc. could be used for protectionist purposes; and

We are ready to cooperate with the work programme of CTE which has a 10-point balanced agenda before it.

Labour

We are opposed to any linkage of trade with labour issues in WTO;

Once the Singapore Ministerial decided that ILO is the competent body to handle the issues, we do not want it to be reopened for inclusion in the WTO agenda; and

Even otherwise the intention of its proponents is not to protect labour interests but to somehow blunt the comparative edge of developing countries in producing labour intensive products like textiles.

Industrial Tariffs

We are not convinced about the need for tariff negotiations when even Uruguay Round (UR) phase-out has not been yet completed for certain products;

We have very recently removed all the QRs and need time to adjust. Certain sectors like SSI need continued for their exclusion;

For unbound sensitive items, we want a clear commitment for their exclusion;

There should be a clear and uncompromising commitment to eliminate tariff peaks and tariff escalations.

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IMPORT DATA FOR 300 SENSITIVE ITEMS -- APRIL- SEPTEMBER 2001

PRESS NOTE

The total import of 300 sensitive tariff lines for the period April to September 2001 has been Rs.6040 crore against Rs.5551 crore for the corresponding period of last year thereby showing a positive growth rate of 9%. This figure may undergo some revision after validation of commodity codes because of the possibility of some items having been inadvertently misclassified by the importers. Provisional estimates of commodity group-wise imports from April-September 2001 as compared to April-September 2000 are enclosed. The ‘others’ group in the enclosed statement comprises wheat flour, sugar, cigarettes and salt. This group has also registered a decline.

2. Until recently the import of sensitive items as per flash data have been showing a negative growth over the previous year. Based on the final data till June 2001 the sensitive items during the first Quarter viz April-June 2001 have shown a negative growth rate of 4.5% over the corresponding period of last year. However, as per indications being received in the second Quarter, the growth might turn out to be positive. This is primarily because of spurt in import of Crude edible oil particularly Soya bean. Excluding this item, imports of other sensitive items are indicating a negative growth of 10% during the first half of the current year.

3. At the broad group level of commodities, imports indicate increases in respect of Spices, Rubber and marble & Granite. In the fruits & vegetables segment, even though there is a sharp decline at the broad group level from Rs.828 crore to Rs. 397 crore, there has been some increase in respect of Pistachios from Rs.31crore to Rs.67 crore & Apples from Rs.12 crore to Rs.24 crore. In the case of marble and granite, even though the percentage increase is significant, the aggregate import of Rs.8.49 crore is not significant in relation to the size of the domestic production.

4. In the edible oil segment, the imports have increased from Rs.3245 crore last year to Rs. 3798 crore for the corresponding period this year. A significant feature of edible oil import is that while import of Soya bean & palm crude oil has gone up, that of refined Soya bean & palm oil has gone down leading to better utilisation of the processing capacity in the country. However, import of Sunflower oil, both crude & refined, has gone down.

5. On the basis of the country of origin, the data reveals decreases in imports from Indonesia, Malaysia, Ghana, Ivory Coast, Russia, Guinnea Bissau, Thailand, and New Zealand.

6. Imports from Brazil, Denmark, USA, Nigeria, Iran, Greece, Syria & Chile have shown increases.

The overall picture that emerges from these quick estimates is that the imports have responded to the customs duty changes and other import management measures put in effect in the recent months. The issue of increase in import of Soya bean oil by as much as Rs.1200 crore has been taken up for an in-depth study in consultation with the Ministry of Agriculture and the domestic trade bodies.

IMPORT OF SENSITIVE ITEMS- PROVISIONAL ESTIMATE

Value : Rs. Crore

1 Milk & Milk Products

22

32.14

6.35

2 Fruits & Vegetables

48

827.60

397.49

3 Poultry

13

0.01

0.25

4 Tea & Coffee

32

15.28

16.54

5 Spices

35

80.33

139.02

6 Food Grains

12

22.45

2.73

7 Edible Oil

27

3244.89

3798.01

8 Alcoholic beverages

8

14.88

19.74

9 Rubber

11

20.34

52.76

10 Cotton & Silk

6

1165.06

1492.27

11 Marble & Granite

14

3.53

8.49

12 Automobiles

32

37.97

46.74

13 Products of concern to SSI (Umbrella, locks, toys, writing instruments, tiles, glassware etc.)

20

61.48

51.74

14 Others (wheat floor, sugar, cigarette & salt)

20

25.43

8.17

Total

300

5551.41

6040.31

Directorate General of Foreign Trade, Ministry of Commerce & Industry New Delhi, dated 7th November, 2001

 

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WTO -- A GLOSSARY OF TERMS

AN INFORMAL PRESS GUIDE TO WTO SPEAK

New Delhi: November 05, 2001

General

GATT — General Agreement on Tariffs and Trade, which has been superseded as an international organisation by the WTO (World Trade Organisation). An updated General Agreement is now one of the WTO’s agreements.

GATT 1947 — The old (pre-1994) version of the GATT.

GATT 1994 — The new version of the General Agreement, incorporated into the WTO, which governs trade in goods.

Members — WTO governments (first letter capitalised, in WTO style).

MFN — Most-favoured-nation treatment (GATT Article I, GATS Article II and TRIPS Article 4), the principle of not discriminating between one’s trading partners.

National treatment — The principle of giving others the same treatment as one’s own nationals. GATT Article III requires that imports be treated no less favourably than the same or similar domestically-produced goods once they have passed customs. GATS Article XVII and TRIPS Article 3 also deal with national treatment for services and intellectual property protection.

TPRB, TPRM — The Trade Policy Review Body is General Council operating under special procedures for meetings to review trade policies and practices of individual WTO members under the Trade Policy Review Mechanism.

Transparency — Degree to which trade policies and practices, and the process by which they are established, are open and predictable.

Uruguay Round — Multilateral trade negotiations launched at Punta del Este, Uruguay in September 1986 and concluded in Geneva in December 1993. Signed by Ministers in Marrakesh, Morocco, in April 1994.

Tariffs

binding, bound — see "tariff binding"

electronic commerce — The production, advertising, sale and distribution of products via telecommunications networks.

free-rider — A casual term used to infer that a country which does not make any trade concessions, profits, nonetheless, from tariff cuts and concessions made by other countries in negotiations under the most-favoured-nation principle.

Harmonised System — An international nomenclature developed by the World Customs Organisation, which is arranged in six digit codes allowing all participating countries to classify traded goods on a common basis. Beyond the six digit level, countries are free to introduce national distinctions for tariffs and many other purposes.

ITA — Information Technology Agreement, or formally the Ministerial-Declaration on Trade in Information Technology Products, under which participants will remove tariffs on IT products by the year 2000.

ITA II — Negotiations aimed at expanding ITA’s product coverage.

nuisance tariff — Tariff so low that it costs the government more to collect it than the revenue it generates.

schedule of concessions — List of bound tariff rates.

tariff binding — Commitment not to increase a rate of duty beyond an agreed level. Once a rate of duty is bound, it may not be raised without compensating the affected parties.

tariff escalation — Higher import duties on semi-processed products than on raw materials, and higher still on finished products. This practice protects domestic processing industries and discourages the development of processing activity in the countries where raw materials originate.

tariff peaks — Relatively high tariffs, usually on "sensitive" products, amidst generally low tariff levels. For industrialised countries, tariffs of 15% and above are generally recognised as "tariff peaks".

tariffs — Customs duties on merchandise imports. Levied either on an ad valorem basis (percentage of value) or on a specific basis (e.g. $7 per 100 kgs.). Tariffs give price advantage to similar locally-produced goods and raise revenues for the government.

WCO — World Customs Organisation, a multilateral body located in Brussels through which participating countries seek to simplify and rationalise customs procedures.

Non-tariff measures

anti-dumping duties — Article VI of the GATT 1994 permits the imposition of anti-dumping duties against dumped goods, equal to the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country.

circumvention — Measures taken by exporters to evade anti-dumping or countervailing duties.

countervailing measures — Action taken by the importing country, usually in the form of increased duties to offset subsidies given to producers or exporters in the exporting country.

dumping — Occurs when goods are exported at a price less than their normal value, generally meaning they are exported for less than they are sold in the domestic market or third-country markets, or at less than production cost.

NTMs — Non-tariff measures such as quotas, import licensing systems, sanitary regulations, prohibitions, etc.

price undertaking — Undertaking by an exporter to raise the export price of the product to avoid the possibility of an anti-dumping duty.

PSI — Pre-shipment inspection — the practice of employing specialised private companies to check shipment details of goods ordered overseas — i.e. price, quantity, quality, etc.

QRs — Quantitative restrictions — specific limits on the quantity or value of goods that can be imported (or exported) during a specific time period.

rules of origin — Laws, regulations and administrative procedures which determine a product’s country of origin. A decision by a customs authority on origin can determine whether a shipment falls within a quota limitation, qualifies for a tariff preference or is affected by an anti-dumping duty. These rules can vary from country to country.

safeguard measures — Action taken to protect a specific industry from an unexpected build-up of imports — governed by Article XIX of the GATT 1994.

subsidy — There are two general types of subsidies: export and domestic. An export subsidy is a benefit conferred on a firm by the government that is contingent on exports. A domestic subsidy is a benefit not directly linked to exports.

tariffication — Procedures relating to the agricultural market-access provision in which all non-tariff measures are converted into tariffs.

trade facilitation — Removing obstacles to the movement of goods across borders (e.g. simplification of customs procedures).

VRA, VER, OMA — Voluntary restraint arrangement, voluntary export restraint, orderly marketing arrangement. Bilateral arrangements whereby an exporting country (government or industry) agrees to reduce or restrict exports without the importing country having to make use of quotas, tariffs or other import controls.

Textiles and clothing

ATC — The WTO Agreement on Textiles and Clothing which integrates trade in this sector back to GATT rules within a ten-year period.

carry forward — When an exporting country uses part of the following year’s quota during the current year.

carry over — When an exporting country utilises the previous year’s unutilised quota.

circumvention — Avoiding quotas and other restrictions by altering the country of origin of a product.

CTG — Council for Trade in Goods — oversees WTO agreements on goods, including the ATC.

integration programme — The phasing out of MFA restrictions in four stages starting on 1 January 1995 and ending on 1 January 2005.

ITCB — International Textiles and Clothing Bureau — Geneva-based group of some 20 developing country exporters of textiles and clothing.

MFA — Multifibre Arrangement (1974-94) under which countries whose markets are disrupted by increased imports of textiles and clothing from another country were able to negotiate quota restrictions.

swing — When an exporting country transfers part of a quota from one product to another restrained product.

TMB — The Textiles Monitoring Body, consisting of a chairman plus ten members acting in a personal capacity, oversees the implementation of ATC commitments.

transitional safeguard mechanism — Allows members to impose restrictions against individual exporting countries if the importing country can show that both overall imports of a product and imports from the individual countries are entering the country in such increased quantities as to cause — or threaten — serious damage to the relevant domestic industry.

Agriculture/SPS

Agenda 2000 — EC’s financial reform plans for 2000–06 aimed at strengthening the union with a view to receiving new members. Includes reform of the CAP (see below).

border protection — Any measure which acts to restrain imports at point of entry.

BSE — Bovine spongiform encephalopathy, or "mad cow disease".

box — Category of domestic support. — Green box: supports considered not to distort trade and therefore permitted with no limits. — Blue box: permitted supports linked to production, but subject to production limits and therefore minimally trade-distorting. — Amber box: supports considered to distort trade and therefore subject to reduction commitments.

Cairns Group — Group of agricultural exporting nations lobbying for agricultural trade liberalisation. It was formed in 1986 in Cairns, Australia just before the beginning of the Uruguay Round. Current membership: Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, Philippines, South Africa, Thailand and Uruguay.

CAP — Common Agricultural Policy — The EU’s comprehensive system of production targets and marketing mechanisms designed to manage agricultural trade within the EU and with the rest of the world.

Codex Alimentarius — FAO/WHO commission that deals with international standards on food safety.

distortion — When prices and production are higher or lower than levels that would usually exist in a competitive market.

deficiency payment — Paid by governments to producers of certain commodities and based on the difference between a target price and the domestic market price or loan rate, whichever is the less.

EEP — Export enhancement programme — programme of US export subsidies given generally to compete with subsidised agricultural exports from the EU on certain export markets.

food security — Concept which discourages opening the domestic market to foreign agricultural products on the principle that a country must be as self-sufficient as possible for its basic dietary needs.

internal support — Encompasses any measure which acts to maintain producer prices at levels above those prevailing in international trade; direct payments to producers, including deficiency payments, and input and marketing cost reduction measures available only for agricultural production.

International Office of Epizootics — Deals with international standards concerning animal health.

multifunctionality — Idea that agriculture has many functions in addition to producing food and fibre, e.g. environmental protection, landscape preservation, rural employment, etc. See non-trade concerns.

non-trade concerns — Similar to multifunctionality. The preamble of the Agriculture Agreement specifies food security and environmental protection as examples. Also cited by members are rural development and employment, and poverty alleviation.

peace clause — Provision in Article 13 of the Agriculture Agreement says agricultural subsidies committed under the agreement cannot be challenged under other WTO agreements, in particular the Subsidies Agreement and GATT. Expires at the end of 2003.

reform process/programme — The Uruguay Round Agriculture Agreement starts a reform process. It sets out a first step, in the process, i.e. a programme for reducing subsidies and protection and other reforms. Current negotiations launched under Article 20 are for continuing the reform process.

SPS regulations — Sanitary and Phytosanitary regulations — government standards to protect human, animal and plant life and health, to help ensure that food is safe for consumption.

variable levy — Customs duty rate which varies in response to domestic price criterion.

ntellectual property

Berne Convention — Treaty, administered by WIPO, for the protection of the rights of authors in their literary and artistic works.

CBD — Convention on Biological Diversity.

compulsory licensing — For patents: when the authorities license companies or individuals other than the patent owner to use the rights of the patent — to make, use, sell or import a product under patent (i.e. a patented product or a product made by a patented process) — without the permission of the patent owner. Allowed under the TRIPS Agreement provided certain procedures and conditions are fulfilled. See also government use.

counterfeit — Unauthorised representation of a registered trademark carried on goods identical or similar to goods for which the trademark is registered, with a view to deceiving the purchaser into believing that he/she is buying the original goods.

exhaustion — The principle that once a product has been sold on a market, the intellectual property owner no longer has any rights over it. (A debate among WTO member governments is whether this applies to products put on the market under compulsory licences.) Countries’ laws vary as to whether the right continues to be exhausted if the product is imported from one market into another, which affects the owner’s rights over trade in the protected product. See also parallel imports.

geographical indications — Place names (or words associated with a place) used to identify products (for example, "Champagne", "Tequila" or "Roquefort") which have a particular quality, reputation or other characteristic because they come from that place

government use — For patents: when the government itself uses or authorises other persons to use the rights over a patented product or process, for government purposes, without the permission of the patent owner. See also compulsory licensing.

intellectual property rights — Ownership of ideas, including literary and artistic works (protected by copyright), inventions (protected by patents), signs for distinguishing goods of an enterprise (protected by trademarks) and other elements of industrial property.

IPRs — Intellectual property rights.

Lisbon Agreement — Treaty, administered by WIPO, for the protection of geographical indications and their international registration.

Madrid Agreement — Treaty, administered by WIPO, for the repression of false or deceptive indications of source on goods.

mailbox — Refers to the requirement of the TRIPS Agreement applying to WTO members which do not yet provide product patent protection for pharmaceuticals and for agricultural chemicals. Since 1 January 1995, when the WTO agreements entered into force, these countries have to establish a means by which applications of patents for these products can be filed. (An additional requirement says they must also put in place a system for granting "exclusive marketing rights" for the products whose patent applications have been filed.)

parallel imports — When a product made legally (i.e. not pirated) abroad is imported without the permission of the intellectual property right-holder (e.g. the trademark or patent owner). Some countries allow this, others do not.

Paris Convention — Treaty, administered by WIPO, for the protection of industrial intellectual property, i.e. patents, utility models, industrial designs, etc.

piracy — Unauthorised copying of materials protected by intellectual property rights (such as copyright, trademarks, patents, geographical indications, etc) for commercial purposes and unauthorised commercial dealing in copied materials.

Rome Convention — Treaty, administered by WIPO, UNESCO and ILO, for the protection of the works of performers, broadcasting organisations and producers of phonograms.

TRIPS — Trade-Related Aspects of Intellectual Property Rights.

UPOV — International Union for the Protection of New Varieties of Plants (Union internationale pour la protection des obtentions végétales)

Washington Treaty — Treaty for the protection of intellectual property in respect of lay-out designs of integrated circuits.

WIPO — World Intellectual Property Organisation.

Investment

export-performance measure — Requirement that a certain quantity of production must be exported.

FDI — Foreign direct investment.

local-content measure — Requirement that the investor purchase a certain amount of local materials for incorporation in the investor’s product.

product-mandating — Requirement that the investor export to certain countries or region.

trade-balancing measure — Requirement that the investor use earnings from exports to pay for imports.

TRIMS — Trade-related investment measures.

Dispute settlement

Appellate Body — An independent seven-person body that, upon request by one or more parties to the dispute, reviews findings in panel reports.

automaticity — The "automatic" chronological progression for settling trade disputes in regard to panel establishment, terms of reference, composition and adoption procedures.

DSB — Dispute Settlement Body — when the WTO General Council meets to settle trade disputes.

DSU — The Uruguay Round Understanding on Rules and Procedures Governing the Settlement of Disputes.

nullification and impairment — Damage to a country’s benefits and expectations from its WTO membership through another country’s change in its trade regime or failure to carry out its WTO obligations.

panel — Consisting of three experts, this independent body is established by the DSB to examine and issue recommendations on a particular dispute in the light of WTO provisions.

Services

accounting rate — In telecoms, the charge made by one country’s telephone network operator for calls originating in another country.

commercial presence — Having an office, branch, or subsidiary in a foreign country.

GATS — The WTO’s General Agreement on Trade in Services.

general obligations — Obligations which should be applied to all services sector at the entry into force of the agreement.

Initial commitments — Trade liberalising commitments in services which members are prepared to make early on.

modes of delivery — How international trade in services is supplied and consumed. Mode 1: cross border supply; mode 2: consumption abroad; mode 3: foreign commercial presence; and mode 4: movement of natural persons.

multi-modal — Transportation using more than one mode. In the GATS negotiations, essentially door-to-door services that include international shipping.

national schedules — The equivalent of tariff schedules in GATT, laying down the commitments accepted — voluntarily or through negotiation — by WTO members.

natural persons — People, as distinct from juridical persons such as companies and organisations.

offer — A country’s proposal for further liberalisation.

protocols — Additional agreements attached to the GATS. The Second Protocol deals with the 1995 commitments on financial services. The Third Protocol deals with movement of natural persons.

prudence, prudential — In financial services, terms used to describe an objective of market regulation by authorities to protect investors and depositors, to avoid instability or crises.

schedule — "Schedule of Specific Commitments" — A WTO member’s list of commitments regarding market access and bindings regarding national treatment.

specific commitments — See "schedule".

Regionalism/trade and development

ACP — African, Caribbean and Pacific countries. Group of 71 countries with preferential trading relation with the EU under the former Lomé Treaty now called the Cotonou Agreement.

Andean Community — Bolivia, Colombia, Ecuador, Peru and Venezuela.

APEC — Asia Pacific Economic Cooperation forum.

ASEAN — Association of Southeast Asian Nations. The seven ASEAN members of the WTO — Brunei, Indonesia, Malaysia, Myanmar, the Philippines, Singapore and Thailand — often speak in the WTO as one group on general issues. The other ASEAN members are Laos and Vietnam.

Caricom — The Caribbean Community and Common Market comprises 15 countries.

CTD — The WTO Committee on Trade and Development

Customs union — Members apply a common external tariff (e.g. the EC).

EC — European Communities (official name of the European Union in the WTO).

EFTA — European Free Trade Association.

free trade area — Trade within the group is duty free but members set own tariffs on imports from non-members (e.g. NAFTA).

G15 — Group of 15 developing countries acting as the main political organ for the Non-Aligned Movement.

G77 — Group of developing countries set up in 1964 at the end of the first UNCTAD (originally 77, but now more than 130 countries).

G7 — Group of seven leading industrial countries: Canada, France, Germany, Italy, Japan, United Kingdom, United States.

GRULAC — Informal group of Latin-American members of the WTO.

GSP — Generalised System of Preferences — programmes by developed countries granting preferential tariffs to imports from developing countries.

HLM — WTO High-Level Meeting for LDCs, held in October 1997 in Geneva.

ITC — The International Trade Centre, originally established by the old GATT and is now operated jointly by the WTO and the UN, the latter acting through UNCTAD. Focal point for technical cooperation on trade promotion of developing countries.

LDCs — Least-developed countries.

MERCOSUR — Argentina, Brazil, Paraguay and Uruguay.

NAFTA — North American Free Trade Agreement of Canada, Mexico and the US.

Quad — Canada, EC, Japan and the United States.

SACU — Southern African Customs Union comprising Botswana, Lesotho, Namibia, South Africa and Swaziland.

S&D — "Special and differential treatment" provisions for developing countries. Contained in several WTO agreements.

UNCITRAL — United Nations Centre for International Trade Law, drafts model laws such as the one on government procurement.

UNCTAD — The UN Conference on Trade and Development.

Trade and environment

Agenda 21 — The Agenda for the 21st Century — a declaration from the 1992 Earth Summit (UN Conference on the Environment and Development) held in Rio de Janeiro.

Article XX — GATT Article listing allowed "exceptions" to the trade rules.

Basel Convention — An MEA dealing with hazardous waste.

BTA — Border tax adjustment

CITES — Convention on International Trade in Endangered Species. An MEA.

CTE — The WTO Committee on Trade and Environment.

EST — Environmentally-sound technology.

EST&P — EST and products.

Ex ante, ex post — Before and after a measure is applied.

LCA — Life cycle analysis — a method of assessing whether a good or service is environmentally friendly.

MEA — Multilateral environmental agreement.

Montreal Protocol — An MEA dealing with the depletion of the earth’s ozone layer.

PPM — Process and production method.

TBT — The WTO Agreement on Technical Barriers to Trade.

waiver — Permission granted by WTO members allowing a WTO member not to comply with normal commitments. Waivers have time limits and extensions have to be justified.

[ Source: WTO Secretariat/Geneva ]

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MARAN TO LEAD INDIAN DELEGATION TO DOHA MEET

FOURTH MINISTERIAL CONFERENCE OF WTO

FROM NOVEMBER 9 TO 13, 2001

New Delhi: November 05, 2001

Shri Murasoli Maran, Union Minister of Commerce & Industry, would be leading the Indian delegation to the Fourth Ministerial Conference of the World Trade Organisation (WTO) scheduled to be held in Doha, Qatar, from 9th to 13th November, 2001. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry; Shri Prabir Sengupta, Commerce Secretary; Shri Nripendra Misra, Special Secretary (Trade Policy Division), Ministry of Commerce & Industry; and senior representatives of several other Ministries including External Affairs, Agriculture, Information Technology, Environment & Forests and SSI will be accompanying Shri Maran. Representatives from industry associations will be joining the Ministerial delegation in Doha. The Ministerial Conferences are important as they set the future work programme of the WTO, besides giving an opportunity to the Ministers to review the operation and functioning of the multilateral trading system and to make general statements on the same.

The Ministerial Conference is the highest decision making body of the WTO and the Ministerial Conferences of the WTO are mandated to be held once in every two years. The First Ministerial Conference of the WTO (which came into being in January 1995 as a successor to the GATT) was held in Singapore in December 1996; the Second Ministerial Conference in Geneva in May 1998; and the Third Ministerial Conference in Seattle in November-December 1999.

The preparatory process of consultations for the Doha Ministerial Conference has been underway at the General Council of the WTO in Geneva and India has been participating actively in the preparatory process. To move the preparatory process forward for the Fourth Ministerial Conference, the Chairman, General Council of the WTO, released a Draft Ministerial Declaration (DMD) and the Draft Decision on Implementation-related Issues and Concerns on 26th September, 2001. On 27th October, 2001, the revised Draft Ministerial Declaration and a revised Draft Decision on Implementation-Related Issues and Concerns was issued by the General Council, along with a Draft Declaration on Intellectual Property and Access to Medicines (Public Health). India favours the strengthening of the rule-based multilateral trading system and believes that the success of the forthcoming Ministerial Conference is of utmost importance in further strengthening the multilateral trading system of the WTO. During the preparatory process, the developed countries have broadly sought to have a comprehensive agenda which would include negotiations on new subjects also. India has been emphasising that implementation issues of concern to the developing countries should be satisfactorily addressed and non-trade related issues should off the agenda for negotiations. The Doha Ministerial Conference should, therefore, address the work of resolution of Implementation-related concerns; assess the progress and give policy directions for the ongoing mandated negotiations on the WTO in agriculture and services and mandated reviews such as Trade-related Intellectual Property Rights (TRIPs) and take up other stock taking and reviews including review of unfinished built-in agenda items of the Uruguay Round Marrakesh Agreement which had established the WTO.

The government has taken all steps to involve the stakeholders in the WTO negotiations. The Commerce & Industry Minister has held a series of interactive sessions with all major political parties to discuss WTO issues. The state governments were also consulted in formulating India's position in the key areas such as agriculture. A series of Workshops with industry associations have been held to obtain the feedback from time to time. The Advisory Committee on International Trade consisting of experts, representatives of industry and civil society and other concerned Ministries have also met under the Chairmanship of the Minister to advise the government on key WTO issues. In the run up to Doha, India has articulated its concerns in various important fora and Shri Maran participated in the informal WTO Trade Ministers Meeting held in Mexico between 31st August and 1st September and in Singapore between 13th and 14th October, 2001. A number of initiatives have been taken to garner support of other developing and like-minded countries.

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WHAT ARE THE IMPLEMENTATION ISSUES -- A FACT SHEET

New Delhi: November 4, 2001

Implementation Issues refer to the concerns and issues pertaining to the implementation of the existing WTO agreements arising out of the commitments undertaken during the Uruguay Round of Multilateral Trade Negotiations as embodied in the Uruguay Round Agreements signed in 1994. During the last 6 or 7 years of implementation of various agreements of the WTO, we have come across several implementation-related problems. These concerns are of three types, namely, non-realisation of anticipated benefits as in the case of the Agreement on Textiles & Clothing and Agreement on Agriculture; inequities and imbalances in some of the agreements like TRIPs, subsidies, anti-dumping etc.; and the non-operational & non-binding nature of Special & Differential provisions of the agreements.

These concerns have been highlighted by India along with 11 other like minded group of developing countries in the preparatory process to the 3rd Ministerial Conference at Seattle and the forthcoming Fourth Ministerial at Doha. These concerns can be categorised into 3 broad categories and are explained below:

Inherent imbalances and asymmetries in the existing agreements.

Examples:

(i) TRIPS (Trade-Related Intellectual Property Rights) provides a higher level of protection for the Geographical Indications for the wines and spirits while items of interest to developing countries like Basmati rice or Darjeeling tea do not enjoy such a protection under TRIPS;

(ii) Through the Convention on Bio-Diversity, specifically recognises the rights of the sovereign countries on their bio- resources, TRIPS does not recognise this and does not provide any international recognition to the various sui generis systems for the protection of traditional knowledge(TK) including by way of prior informed consent and the sharing of benefits if the traditional knowledge has been used by the Patent applicants or others;

(iii) The definition of "inputs consumed in production process" as clarified in Subsidies Agreement (SCM) needs to be expanded to include all inputs such as wear and tear of machinery, tools and dies, grinding wheels etc. so that the duties paid on such inputs for exports could be reimbursed to the exporters.

(iv) Most of the developing countries who had not converted their Quantitative Restrictions (QRs) into tariffs, are not entitled to the use of Special Safeguard Mechanism for taking action against the surge in import volume above a threshold level or decline below a particular level in international prices.

(v) Under the WTO Agreement on Agriculture (AoA), while the developed countries who have been distorting trade by giving high domestic subsidies, have enough flexibility to give any amount of subsidy to any particular commodity as long as the overall Total Aggregate Measurement of Support (AMS) is below the commitments, the developing countries who were not earlier giving high subsidies, can not cross the de minimis level in any item.

(vi) While the Subsidies Agreement (SCM) permits the types of subsidies used by the developed countries, the subsidies generally used by the developing countries are made actionable;

(vii) TRIMs (Trade-Related Investment Measures) Agreement comes in the way of the pursuit of their developmental objectives by the developing countries, as it prohibits them from prescribing any specific percentages of indigenisation for the foreign investments;

Non-fulfilment of their obligations under WTO in true letter and spirit by the developed countries.

Examples:

(i) The developed countries have been maintaining high peak tariffs and tariff escalations for items of export interest to the developing countries such as shoes, garments and agricultural products etc. and have also been imposing various Non- Tariff Barriers including by way of prescribing overly stringent SPS (Sanitary & Phytosanitary) standards;

(ii) Though there is an integration on paper of 33% of the tariffs lines under Agreement on Textiles and Clothing, in effect only about 4-6 % of the tariff lines under Quota have been integrated so far by the US and EU;

(iii) Back to back anti dumping action has been initiated even on textile items which are under Quota regime;

(iv) The developed countries have not made any worthwhile commitments under Mode 4 of GATS (General Agreement on Trade in Services) i.e., movement of natural persons and professionals, which is of particular significance to developing countries, besides putting several hurdles by way of Economic Needs Test, Social Security Payments, Wage Parity etc;

(v) The provisions for Article 9.1 of Anti Dumping Agreement providing for lesser duty rule have not been implemented;

(vi) The Tariff Rate Quotas* are being implemented in a most arbitrary and opaque manner denying meaningful market access to the developing countries for their agricultural exports;

(vii) The developed countries have been demanding reciprocal market access as well as adherence to core labour standards and environmental standards for giving GSP (Generalised System of Preferences) benefits, though under the Enabling clause, it should be implemented in a generalised, non discriminatory and non-reciprocal manner.

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* Trading mechanism that provides for the application of a customs duty at a certain rate to imports of a particular good up to a specified quantity (in quota quantity), and at a different rate to imports of that good that exceed that quantity.

Non operationalisation of Special and Differential Treatment Clauses

The Special and Differential Treatment clauses in favour of developing countries as provided for in various WTO agreements have not at all been operationalised and have remained only as best endeavour clauses for which no effort has been made by the developed countries. The developed country members have also not incorporated such provisions in their domestic laws and regulations which has also led to non-operationalisation of S&D clauses

Examples:

Article 15 of Anti Dumping Agreement exhorts that special regard must be given by the developed countries to the special situation of the developing country members when considering anti-dumping measures and that possibilities of constructive remedies shall be explored before applying anti-dumping measures where they would affect the essential interests of developing country members. The above has been followed only in breach. With a view to effectively operationalise this S&D provision, it has been demanded by the developing countries that there should be a gap of at least 365 days in initiating the anti-dumping action on the same item and the various de minimis levels for the developing countries should be suitably enhanced;

Under the SPS agreement, though Article 10.2 provides that reasonable time should be provided to the developing countries from the date of notification of any new SPS Measure, it has not been so implemented;

The Special and Differential (S&D) provision of Article XVIII ‘B’ providing for the imposition of QRs on Balance of Payment grounds has been virtually made redundant and the development dimension has been given a go by. It is now being interpreted in such a manner that the conditions under which QRs can be imposed by the developing countries under Article XVIII’B’ are same as provided under Article XII for the developed countries;

Under the Dispute Settlement Understanding, there are various S&D provisions which provide a special & differential treatment in favour of developing countries. However, this has not been taken into account in any case while dealing with disputes involving developing countries.

These implementation related concerns were highlighted by India alongwith other likeminded group of developing countries in the preparatory process to the Seattle Ministerial Conference. After the failure of the Seattle Ministerial Conference, General Council of WTO had taken up a confidence building exercise for the developing countries and had in its May, 2000 meeting decided that all implementation related concerns of the developing countries as included at para 21 and para 22 of the draft Ministerial text for the Seattle Conference, should be addressed and decisions taken before the 4th Ministerial Conference. Though several meetings of the General Council, both formal and informal, have taken place for finding a solution to the implementation problems, the progress of resolution of Implementation issues has been rather disappointing.

India has maintained that the resolution of the "Implementation related concerns" of the developing countries should be done by the WTO membership without in any way linking it with the launch of any new or comprehensive round of negotiations as these concerns are a hangover of the past Uruguay Round of Negotiations for which the developing countries have already paid by taking several onerous obligations and are not prepared to pay again. Effective resolution of implementation issues requires a certain amount of political sensitivity and good faith efforts by the developed countries and these cannot be dealt with in a narrow and legal straight jacket manner. Therefore, referring such issues to subsidiary bodies which tend to look at them in a purely legalistic and technical manner may not meet the aspirations of developing countries. Consequently, a broader political view needs to be taken by the General Council for the effective resolution of these concerns.

India along with other developing countries has consistently pressed for the satisfactory resolution of these Implementation Related Concerns’ before the Doha Ministerial Conference in terms of the May 2000 resolution of the General Council of WTO.

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QUALITY AND CREDIBILITY VITAL FOR TRADE EXPANSION, SAYS RUDY

ON-LINE FACILITIES FOR EXPORTERS WOULD BE LAUNCHED SOON BY EIC

New Delhi: November 1, 2001.

Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry has said that India has to use quality and credibility as a tool for expanding its trade and urged the exporters to avail services and expertise of Export Inspection Council of India (EIC) to gain comprehensive benefits on their products. While inaugurating the Awareness Programme on issuance of Certificates of Origin for Exporters held by EIC, here today, Shri Rudy said there should be convergence of views and ideas of both the EIC and Exporters. Shri Rudy also inaugurated the new office of EIC on this occasion. Shri S.N. Menon, Additional Secretary and Financial Advisor, Ministry of Commerce & Industry, released the "Guide for Exporters" on the occasion where Ms. Shashi Sareen, Director, EIC and representatives of Exporters were also present.

Shri Rudy said that India must convert the challenges of WTO regime into opportunities for greater access into overseas markets and expand its exports from the current levels. He said the Preferential Tariff Scheme represent one such instrument to gain foothold in the international market. The Minister told that the government would encourage voluntary export certification in most sectors through EIC as the official body for such purposes and asked EIC to intensify its efforts of seeking recognition for our export certification by overseas countries on behalf of India. He hoped that such recognition would go a long way in providing greater access to our goods in the international market.

Shri Rudy complimented the role of exporters in India’s growing economy and said that EIC, exporting industry and government are the joint partners in boosting our export earnings and contributing to the national wealth. At the same time, the Minister emphasised that the exporters need to co-operate with the Certifying Bodies for the smooth operation of the entire system. Shri Rudy commended EIC for the initiatives taken to educate the exporters on the rules of origin of different countries as well as to clarify the procedures being followed.

Shri Menon said that quality parameters are important in today’s global competitive environment and EIC has a key role to play in this regard. He informed that a comprehensive business information centre would be opened up soon at ITPO, Pragati Maidan for the benefit of Exporters. Ms. Shashi Sareen spelt out the role and activities of EIC and declared that on-line facilities will be launched in metros by the end of this financial year to make EIC more exporter- friendly. Large number of exporters and representatives of various organisations attended the function.

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INDIA’S FOREIGN TRADE: APRIL-SEPTEMBER, 2001-2002

New Delhi : November 1,2001

India's Exports during April-September, 2001-2002 are valued at US $ 20967.81 million which is 1.95% lower than the level of US $ 21385.65 million during April- September, 2000-2001. In rupee terms, the exports were Rs.98773.66 crores, which is 3.07% higher than the value of exports during April- September , 2000-2001.

Exports during September 2001 are valued at US $ 3516.77 million which is 8.61% lower than the level of US $ 3848.09 million in September 2000. In rupee terms the exports were Rs.16754.61 crores, which is 5.12% lower than the value of exports during September ,2000.

India's Imports during April- September , 2001-2002 are valued at US $ 25930.68 million representing a growth of 1.81% over the level of imports valued at US $ 25468.96 million in April- September, 2000-2001.

Oil imports during April- September , 2001-2002 are valued at US $ 7629.70 million which is 8.1% lower than oil imports valued at US $ 8300.70 million in the corresponding period last year. Non-oil imports during April- September , 2001-2002 are estimated at US $ 18300.98 million which is 6.60% higher than the level of such imports valued at US $ 17168.26 million in April- September ,2000-2001.

Imports during September 2001 are valued at US $ 4185.87 million which is 1.46 lower than the level of US $ 4247.75 million in September , 2000. In Rupee terms the imports increased by 2.31%.

The trade deficit for April- September , 2001-2002 is estimated at US $ 4962.87 million which is higher than the deficit at US $ 4083.31 million during April- September , 2000-2001.

Tables giving details of exports, imports and trade balance, according to the provisional estimates of Directorate General of Commercial Intelligence & Statistics (DGCI&S), are attached.

IMPORTS & EXPORTS : (PROVISIONAL)

(Unadjusted for late returns)

(US $ Million)

  September April-September
EXPORTS
2000-2001*

3848.09

21385.65

2001-2002

3516.77

20967.81

%Grw 2001-2002/2000-2001

-8.61

-1.95

IMPORTS
2000-2001*

4247.75

25468.96

2001-2002

4185.87

25930.68

%Grw 2001-2002/2000-2001

-1.46

1.81

TRADE BALANCE
2000-2001

-399.66

-4083.31

2001-2002

-669.10

-4962.87

*Final figures as given by DGCI&S

 

IMPORTS & EXPORTS : (PROVISIONAL)

(Unadjusted for late returns)

(Rs Crores)

September April-September
EXPORTS
2000-2001*

17658.21

95827.10

2001-2002

16754.61

98773.66

%Grw 2001-2002/2000-2001

-5.12

3.07

IMPORTS
2000-2001*

19492.18

113993.10

2001-2002

19942.31

122137.75

%Grw 2001-2002/2000-2001

2.31

7.14

TRADE BALANCE
2000-2001

-1833.97

-18166.00

2001-2002

-3187.70

-23364.09

*Final figures as given by DGCI&S

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