Govt Expects EU To Scale Up Textile Quota

With 10 East European countries are set to join the 15-nation European Union from May 1 next, New Delhi expects Brussels to raise the textile quota for the Third World, including India. The increase is because of the European Union''s decision to make the new members also share the quota under the World Trade Organisation agreement on textiles and clothing, say textile ministry officials.

While the anticipated quota hike for 2004 will to some extent stop any dimunition in the country''s textile exports to the enlarged Union, Brussels'' move goes against the world trade body''s rules as the new members do not figure in the above agreement as quota countries, opine officials, experts as also bigwigs in industry.

"The EU cannot make a non-quota country as a quota country under the above agreement as it goes counter to the rules of the world trade body, officials assert. New Delhi can take recourse to the dispute settlement body to remedy the situation, but that will be time consuming, they point out. Under the agreement on textiles and clothing, the main quota countries are the United States and Canada, besides the EU.