The Hindu Business Line : BIMSTEC free trade agreement — Inter-ministerial group to finalise `negative list'

THE Commerce Ministry is now in the last leg of industry consultations before finalising the `negative list' of items (on which no tariff concessions will be exchanged, to begin with, among member countries), under the Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) free trade agreement (FTA) signed last year in Phuket, Thailand. Items of India's export interest would not figure in the `negative list'.

A crucial inter-ministerial meeting would be held on May 16, to finalise the list, based on the recommendations of the various industry bodies and other stakeholders.

The FTA also provides for having products in the `negative list', and the number of such products shall be subject to a maximum ceiling to be mutually agreed among the parties. The agreement provides for such a list that would include products on which tariffs will not be reduced or eliminated.

Speaking at an interactive session on `FTA with BIMSTEC countries' here, organised by the Ministry of Commerce, and the Federation of Indian Chambers of Commerce and Industry (FICCI), jointly with Capexil and Plexconcil, Mr R.S. Ratna, Director in the Ministry, said there was a need to prioritise the items that should figure in the negative list. Such items should not exceed 1,200-1,250 tariff lines at the six digit HS level (which includes some 524 products as Indian customs classification), to be put in the three tracks of "fast, normal and negative".

He clarified that since the negative list will be exchanged among member countries at the next BIMSTEC Tariff Negotiating Committee (TNC) meeting scheduled to be held in the first week of June, the items have to be finalised by May 15.

Mr Ratna informed that a list of 1,761 items has been prepared based on inter-ministerial consultations and inputs from industry associations without any internal examination of economic logic or justification whether these are really sensitive or not. He said all items identified through a study to keep in India's negative list have also been kept in the tally of 1,761.

Pointing out that the member countries have constituted the TNC to carry forward the programme as stipulated in the FTA, he said the texts of the agreement in goods, rules of origin, safeguard mechanism and dispute settlement etc., have been circulated and negotiations were going on. The TNC is at present discussing the negative lists under the FTA in goods.

Mr Ratna, who is part of the TNC, said after the exchange of the negative lists, negotiations would be held to prune down the list and a desirable level would need to be finalised. However, the total number of items should not be more than 20 per cent of the total tariff lines.

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