India:Talks On Quota Removal To Begin On May 7

Textile will be the key feature in the Bilateral talks between New Delhi and Brussels scheduled to be held in Brussels on May 7.

The issues may include removal of quota restrictions on India's textile exports under the WTO agreement on textiles and clothing, frequent anti-dumping/anti-subsidy investigations by the Union and greater market access to the EU markets.

An official delegation, to be led by textile secretary SB Mohapatra, will represent New Delhi at the meeting, which comes on the heels of the visit to India of EU trade commissioner Pascal Lamy in March. Prior to the May 7 meeting, the delegation will attend a two-day conference on the future of textiles and clothing after 2005 in Brussels on May 5 and 6. World Trade Organisation director-general Supachai Panitchpakdi, Mr Lamy, and Unctad secretary-general Rubens Ricupero have been listed as the main speakers.

The conference will also have a session on the Third World's expectations and benefits under the Doha development agenda. Mexican trade minister Fernando Canales, European Commission trade director general Mogens Peter Carl, and Brazilian trade minister Luiz Fernando Furian are also expected to address the summit.

Mr Mohapatra has told Financial Express that the forthcoming talks will be "exploratory" in nature and the objective is to probe the EU's perception on the core textile issues. The textile secretary has, however, ruled out any discussions on the EU's generalised system of preferences scheme that benefited the Pakistani textile sector, and pointed out that the matter is pending before a WTO panel set up at New Delhi's instance.

Mr Mohapatra has explained that Brussels is continuing with its import curbs on Indian textile products under the agreement on textiles and clothing, and as a result of which only 20 per cent of the quota restrictions have been lifted so far, leaving the remaining quotas to be eliminated by the time the agreement itself will be terminated by December 31 next year, thus denying New Delhi the benefit of any effective market access.

The textile secretary has also pointed out that as on January 1, 1995, the Union had as many as 219 quotas. In the first stage of integration of quotas under the agreement, no quotas was removed. In the second stage from January 1, 1998, only 14 quotas were integrated and in the third stage from January 1, 2002, 38 quotas were integrated, he has pointed out. Worse, New Delhi's problems has been compounded by frequent anti-dumping/anti-subsidy investigations by Brussels, he said.

The WTO panel to examine EU's generalised system of preferences scheme was constituted on January 27 this year. The three-year scheme from January 1, 2002 provides for suspension of customs duties on all products, including textiles, which have not "graduated" under the special tariff arrangements to combat drug production and trafficking and to protect labour rights and the environment.

The special arrangement conceded to Pakistan, Mr Mohapatra insisted, adversely affected Indian textile exports to the Union. On the other hand, during the talks with commerce and industry minister Arun Jaitley in the Capital in March this year, the EU trade commissioner had maintained that New Delhi had not lost its market share in the Union and its special treatment to Pakistani textile products had not affected New Delhi's trade with Brussels.