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India for caution before imposing dumping duty

Our Bureau

CHENNAI, Feb. 22

INDIA is in the process of submitting a proposal to the WTO, seeking operationalisation of the article 15 of the Anti-dumping agreement. The article requires the developed countries to give special regards to the situation of developing countries while applying anti-dumping measures.

Also, India has taken up the matter of countervailing duties imposed by other countries, which are in excess of the benefits received by the Indian customer, Mr R Gopalan, Joint Secretary, Ministry of Commerce and a member of the negotiating team, said here today.

Speaking at a seminar on 'Demystifying WTO', organised here by the Madras Chamber of Commerce and Industry (MCCI), Mr Gopalan said that the government had "already submitted a detailed a proposal specifically highlighting the procedures adopted by the investigating authorities leading to imposition of countervailing duties in excess of the benefits

received by the exporters".

Noting that in the services sector, India would have to submit `initial requests' (for negotiations) by June 2002 and make `initial offers' by March 2003, Mr Gopalan said that India would be interested mainly in (a) health (b) software (c) construction and engineering (d) accountancy (e) audio visual (f) tourism and (g) architecture.

"It is anticipated that we may be requested by other countries to submit `offers' in Sectors like telecommunication services, financial services, energy services and environmental services", he said.

On agriculture, Mr Gopalan said that India would insist on the developed countries achieving their commitments for "substantial reductions in tariff levels, tariff peaks and escalations, trade distortive domestic support and elimination of subsidies".

India would also ask for specific and targeted `special and differential' provisions in the current negotiations. "India has recently submitted a proposal containing a broad framework for incorporation of S&D provisions in agriculture negotiations," he said.

The highlights of the proposal are:

Developing countries should have flexibility to rationalise and rebalance their tariff bindings and maintain tariffs consistent with their development needs.

Special safeguards (SSG) should be extended to developing countries in respect of all agriculture commodities on which QRs have been removed in the post-Uruguay Round phase.

Measures by developing countries for food security, poverty alleviation, rural development, rural employment and diversification of agriculture should be exempted from reduction commitment.

Product specific support provided to low income and resource poor farmers should be excluded from the calculation of AMS.

Credit should be given for negative product specific AMS by allowing developing countries to adjust the non -product specific AMS against the same. Some `credit' for negative product specific AMS should be given by excluding from AMS calculation specific food security expenditures.

Speaking at the seminar, Mr Som Pal, Member, Planning Commission, observed that the TRIPs agreement would have an adverse impact on "prices, health and more importantly, on bio-diversity".

Mr Sridhar Venkiteswaran, Vice-President, Business Consulting Group, observed that there are about 1,100 tariff lines in the developed countries that are still at the peak rates, most of them pertaining to commodities that are of interest to the developing countries.

He noted that since the 1970s, the share of the developing countries in world trade had increased from 25 per cent to 33 per cent. Also, within the basket of exports, the share of manufactured commodities increased, he added.

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