The Hindu Business Line : FTAs: `More items must be dropped from sensitive list'

New Delhi April 16 The sensitive list for free trade agreements (FTAs), comprising 709 items, will have to be cut to about 550, according to Mr P.K. Dash, Joint Secretary, Ministry of Commerce and Industry.

Speaking at a session organised by the CII on Monday, he said that the sectors that need to accommodate these cuts are textiles, chemicals and auto.

In the sensitive list, the tariff lines are not to be brought to zero duty. But the 150 items that will be moved out of the sensitive list will have to be brought down to zero by 2018.

The 16 products in the agriculture list will, however, continue to be on the negative list. This pruning is expected to be done in a month, he said.

Mr Dash also said that it is impossible to ensure that all the sectors in the economy gain with FTAs in the short run.

India has decided to put the process of bringing down duties on edible oil on the fast track to reach an early agreement with Asean for an FTA, he said.

"Earlier, India had offered to cut tariffs on edible oil from 2012, but now it has agreed to begin this process immediately after the FTA comes into force."

This will see duties on crude palm oil coming down to 50 per cent (80 per cent) and on refined palm oil to 60 per cent (90 per cent).

The reduction will now be achieved by 2018 instead of 2022. Every year the duties will be brought down by 2-3 per cent, he said.

He added that the duties on tea and coffee will be reduced to 50 per cent (100 per cent).

On pepper too they will come down to 50 per cent (70 per cent).

Indian industry should be prepared for FTAs with other countries and should focus on the preparedness and readiness to enter into the agreements, he added.

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