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The Centre will soon hold
talks with
India Inc to get their response on the proposed inclusion of
market-opening provisions called 'sectorals', aimed at mandatory
reduction or elimination of duties in some infant and vulnerable
sectors - in the final agreement at the Doha Round talks of the
WTO.
The move comes in the
backdrop of
mounting pressure from the US on emerging economies like India to
make commitments at the WTO regarding liberalising markets for
industrial products. The US has stressed that it would not agree to a
global trade deal that does not have clauses on 'sectorals'.
Taking note of WTO head
Pascal Lamy's
request for resumption of the talks, India had indicated its
willingness to return to the negotiating table and restart the talks
if the US gives positive signals.
The US is keen on getting
more markets
access in three sectors -- chemicals, electrical electronics and
industrial machinery. The US wants India to negotiate on these and
agree to eliminate or drastically cut duties in these sectors.
India said clauses like
'sectorals'
would harm its core interest of protecting infant and vulnerable
industries as well as employment-intensive sectors from cheap
imports.
But now the Centre has
decided to hold
talks on 'sectorals' with India Inc in Delhi, Mumbai, Kolkata and
Chennai and in industry hubs like Ahmedabad and Hyderabad, before the
resumption of talks in WTO later in September.
Sources said the aim of the
talks is to
make the industry aware of the consequences of accepting the
inclusion of 'sectorals' in the final deal and thereby agreeing
to commit to drastically reducing the average bound rates in these
sectors or even bringing the bound rates to zero giving countries
like the US total market access.
But since developed
countries would
also be eliminating duties in these sectors, India Inc would have
some offensive interests in gaining access to those markets. And, the
government was trying to find out both offensive and defensive
interests in these sectors and the conditions that it should keep in
mind during future negotiations, they said.
Industry bodies like FICCI
had made it
clear that sectoral tariff negotiations should remain non-mandatory.
There should not be any provision to establish linkages between
'sectorals' and 'flexibilities'. (Source: Financial Times)
August 21, 2008
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