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EU announces 3,500-tonne textile quota

Our Bureau

NEW DELHI, March 7

THE European Union today announced 3,500 tonnes of Indian textile quota items for the 15-member nations as part of its exceptional flexibility provisions, even as New Delhi has been insisting on 8,000 tonnes.

Announcing this at a news conference here, the EU Trade Commissioner Mr. Pascal Lamy, said apart from the normal quota India enjoyed, the exceptional flexibility was given based on shifting unfulfilled quotas on items to others where the quota had been f ulfilled. He said an agreement to this effect would be signed by next week after getting the approval of EU member-countries.

The flexibility would also be governed by import tariff reductions or tariff bindings India would commit to. Mr. Lamy said the limit of 8,000 tonnes could be reached if New Delhi conformed to the commitments in this regard, he said. Mr. Lamy made it clea r that this was not linked to India becoming more flexible on its policies on automobile, where the insistence on export obligation and indigenisation under the MoU route by India had become a bone of contention. He said `differences' continued and there was `no change' in the stance and hinted at approaching the WTO dispute settlement body if no tangible headway was made.

He expressed satisfaction that the growth rate of India's exports to the EU was in the range of 15 per cent in the last few years, which was more than the average growth rate of Indian exports. He, however, did concede that the bilateral trade volume had been far below the potential and said both sides should take concrete steps to further increase trade and investment. The India-EU summit in New Delhi in June would help in opening more avenues for mutual benefit, he said.

Asked about the frequent use of anti-dumping measures by EU on products of specific interest to India, Mr. Lamy denied any such discrimination, adding ``though various standards could not be waived the EU could certainly help India meet these standards b y way of appropriate technical assistance''. He also mentioned how India's anti-dumping machinery had become active in recent months.

On the irritants in bilateral relations, he mentioned India's automotive policy, ban on exports of hides and skin and imposition of special additional duty on imports.

Referring to the new round, Mr. Lamy said though there were differences between India and the EU in the realm of competition policy, investment, environmental issues and core labour standards, the EU was flexible and open to discussions on them to bridge the differences. ``The EU sees itself as a bridge'' between the developed and the developing world to relaunch the stalled multilateral trade talks and the aim of the new round would be to reduce the possibility of unilateral actions which could be achi eved only by strengthening multilateral framework.''

Earlier, Mr. Lamy held an extensive dialogue with the Union Minister of Commerce and Industry, Mr. Murasoli Maran, and the Minister of State for Commerce, Mr. Omar Abdullah. Mr. Maran said market access for Indian goods and services in the EU was getting increasingly difficult because of countless sanitary and phytosanitary norms as well as packaging and labeling needs.

Mr. Maran said ``the EU could demonstrate a higher flexibility in extending better market access to Indian products and services by laying down more transparent and predictable standards and requirements''.

He also drew attention to the disproportionately large number of anti-dumping cases against Indian products which since 1994 cumulatively accounted for 13 per cent of the total number of cases where action had been taken by the EC. Mr. Maran also raised the issue of countervailing duties imposed on stainless steel bright bars and the problems faced by the Indian manufacturers of hot-rolled coils.

Mr. Maran made it clear that the resumption of the Ministerial should supervene only after there was a near convergence of views on most of the items of the agenda.