DUTY CONCESSIONS TO INDIA BY EU ON TEXTILES
Date : 02 Aug 2002
Location : New Delhi
The scheme of Generalised System of Preferences (GSP) of the European Union (EU) for the period 1st January, 2002 to 31st December 2004 inter-alia provides for suspension by the EU of customs duties for all products which have not graduated, under special tariff arrangements to combat drug production and trafficking. Pakistan is one of the beneficiary countries under this special arrangement. As this may adversely affect India’s exports to EU, India had taken up this issue with EU through bilateral consultations held in February 2002 and July 2002. During the consultations it was highlighted that India would stand to lose substantial trade, particularly in the textiles and clothing sector, on account of duty concessions given selectively to Pakistan. The EU was requested to rectify the adverse trade impact due to such concessions. The bilateral consultations did not, however, yield the desired results from India’s point of view.
As the first step to resolve the above dispute with EU, under the Dispute Settlement Mechanism of WTO, it was decided to seek consultations with EU. The consultations were held with EU on 25th March, 2002 during which certain details regarding anticipated adverse impact on our trade were conveyed to the EU. These consultations have, however, not led to positive results. While we are still open to remedial action from the EU side, further course of action would be taken in accordance with the WTO rules, Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, said in a written reply in the Lok Sabha today.