Weak IPR laws, cost of complying with GCC standards affect exports

New Delhi, Jun 12 (UNI) Weak enforcement of Intellectual Property Rights (IPR) laws and the cost of complying with Gulf Cooperation Council (GCC) standards are affecting Indian exports to GCC countries.

According to a FICCI representation to be sent to the Ministry of Commerce and Industry, due to the weak enforcement of IPR laws, a lot of low quality goods of other countries are being sold in the GCC countries under known Indian brands, which in turn are affecting the image and brand of Indian businesses in these countries.

Based on industry feedback, the Chamber noted that the consignments of low quality fans of Chinese origin had been imported in the GCC countries in the name of established Indian brands.

Ditto in the case of rice, where Pakistani rice was reportedly being mixed in the bags of Indian rice, a release issued here said.

The member countries of GCC include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. GCC is one of the largest trading parters of India.

Another area of concern for Indian exporters was the recurring cost of complying with the standards of GCC countries. Quality certification from SASO (Saudi Arabian Standards Organisation)-- the sole standardisation body in the country entrusted with all activities releated to standards, mandatory for export to Saudi Arabia -- involves a recurring burden for the Indian exporter, since validity of such certification lasts for only for a year.

''Any market access offered under the FTA for Indian Business will be ineffective if the image of Indian products get sullied (due to weak IPR laws),'' FICCI said, and also suggested a need for having a Mutual Recognisation Agreement (MRA) in the standards with GCC countries under the FTA.

FICCI further observed that many energy intensive industries, like glass, caustic soda, petrochemicals etc, could face tough competition if such products are imported on zero duty from GCC countries under the FTA. As compared to the energy cost of Rs 3600 per ton in India, the energy cost per ton of float glass is estimated to range from Rs 800 (subsidised rate) to Rs 1500 (market rate) in GCC countries, it says.

Besides market excess in GCC countries for certain products, like tyres, fans chemicals etc, FICCI also felt the need for having a strong presence of Indian banks in GCC countries.

UNI VJ RA HT1950