India : EU Urges To Cut Tariffs On Clothing Imports

As the EU is preparing to open its own textile markets as part of an international trade deal, the European Union has urged India to cut tariffs on clothing imports.

"Given the big differences in tariffs, India will have to make an effort,'' said EU Trade Commissioner Pascal Lamy.

The EU claims India has one of the highest average tariffs on clothing, at 39 per cent. In contrast, the 15-nation EU charges a mere nine per cent.

In addition, the EU, along with the United States and Canada, is scheduled in 2005 to scrap all import quotas though not tariffs on the $350 billion global textile industry as part of a 1994 trade agreement.

Speaking to journalists at an international textile trade conference, Lamy said the EU will press India to drop its tariffs during upcoming global trade negotiations.

However, the Indians refuse any link between the upcoming trade round designed to lower tariffs and the rich countries commitment to phase out quotas by 2005.

"There should be no link between the trade round and the previous textile accord," said Siddharth Rajgopal, executive director of India's Cotton Textiles Export Promotion Council.

India's contests European claims about 39 per cent tarifs. K K Jalan, joint secretary at India's Ministry of Textiles, insisted the country had no tariffs above 25 per cent.

"The Europeans are deliberately confusing the issue," said Jalan.