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NEW DELHI, March 14

INDIA on Friday made it clear that the primary onus of removing the roadblocks to the forthcoming Cancun Ministerial Conference of the World Trade Organisation (WTO) lies with the developed world.

Addressing a meeting on `Indo-EU Economic Relationship: Working Together', organised by the Confederation of Indian Industry (CII), the Union Commerce and Industry Minister, Mr Arun Jaitley, highlighted that the concerns on certain multilateral issues were of greater significance to the developing countries than to the developed countries.

"We are answerable to our constituencies, who do ask serious questions on the advantages received by us under the WTO process. Unless the different time schedules (especially those relating to the special and differential provisions) are strictly adhered to by the developed countries, it would be difficult to show success stories to the constituencies... " Mr Jaitley said.

The Minister also said that India was still not convinced about the benefits that it would attain by going in for a multilateral approach to trade facilitation. "We are conscious of the virtues of trade facilitation. With the kind of resources that may be required, subjecting trade facilitation to a multilateral agreement is something that we have to satisfy ourselves with", he said.

He said that his discussions with the EU Trade Commissioner, Mr Pascal Lamy, did lead to certain "convergence" on the market access front if not on the issue of agricultural subsidies. "Our convergence on the area of market access is a movement forward in bilateral relations", he said.

On lowering of tariffs on industrial goods, he said the Government had been undertaking autonomous liberalisation on this matter.

"Lowering of tariffs has an impact on Governmental revenues. Unless alternative Governmental revenue sources are identified, we will be constrained by this issue in our approach to a multilateral agreement", he said.

He also made it clear that India's position on agriculture at the WTO did not stem from either "tactics" or "substance". He pointed out that tactics and substance were both governed by the social realities and that the country's position on agriculture was reflective of its social realities.

"You may think that this is a conservative approach. But, nearly 65 per cent of population depend on agriculture for livelihood", he said.

In his address, the EU Trade Commissioner, Mr Lamy, highlighted the enormous room for improvement in bilateral trade and investment flows.

Stating that European investors had recognised the enormous potential of the Indian market in sectors such as telecommunications, insurance, banking and distribution, Mr Lamy said that "further liberalisation and reform of financial services and the effective implementation of telecommunication regulations will most certainly help them overcome any remaining hesitation in investing".

EU complains of whisky irritants

WHILE it was the Indian business community that complained about market access problems for "Indian Whisky" on Thursday, the EU side on Friday brought to the fore the problems faced by its domestic spirits industry in accessing Indian markets.

"We are under high pressure from our spirits industry to take India to task for the discriminatory duties and taxes levied on imported spirits. The excessive duties and taxes on spirits, now up to 580 per cent, result in a very profitable grey market, but deprive the Indian Government of revenue", Mr Lamy said.

He said that there were also a number of technical regulations and SPS requirements that made life difficult for our exporters of automobiles, foodstuffs, mineral water, textiles etc.

Claiming that he is not engaging in a mutual-blame game, Mr Lamy said, "there is a way forward if we manage, on both sides, to work business like on our divergencies, to work through our trade irritants one by one"

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