'US review of GSP not linked to WTO impasse'
New Delhi, Aug 8: Commerce and Industry Minister Kamal Nath today said the review of the GSP (Generalised System of Preference) by the US on products of interest to India was not connected with the impasse in the WTO negotiations where New Delhi and Washington have taken opposite stands.
''I am told the GSP review is a regular exercise and is product based and not country-specific. In any case, it is not connected with the current impasse at the WTO'', Mr Kamal Nath said at a FICCI seminar on the Doha Round of Negotiations.
US Trade Representative Susan Schewab had stated yesterday in Washington that the US might review the GSP system of preferential treatement for certain countries like India and Brazil. If the US withdraws the GSP on certain products like textile and pharmaceuticals, the Indian exports of these critical products could be impacted adversely.
Analysts feel that it is the US way of warning India and Brazil which have emerged the champions of the developing countries at the WTO negotiations.
Earlier, in his address Mr Kamal Nath said India would plead with the rich nations to come back to the negotiating table in Geneva to restart the suspended Doha Round of trade talks.
''I plead with them that we must move forward and they should show us the leadership. However leadership does not lie only in seeking market access'', he said.
India
is
only
asking
for
a
fair
rule-based
multilateral
system
where
the
subsistence
farmers
from
the
developing
countries
are
not
made
to
compete
against
heavily
subsidised
agriculturalists
from
the
rich
countries.
In
so
far
as
the
complaint
of
the
EU
and
the
US
over
the
market
access
is
concerned,
the
Commerce
and
Industry
Minister
said
India
has
unilaterally
liberalised
its
economy
so
much
that
there
are
hardly
any
tariff
barriers
left.
''The
applied
duty
rate
on
imports
from
the
US
is
six
per
cent
whereas
it
is
5.7
per
cent
on
imports
from
the
US.
Where
is
market
access
disabler?'',
Mr
Kamal
Nath
said.
He
said
the
India
has
liberalised
its
economy
in
a
caliberated
and
not
followed
the
prescriptions
of
the
World
Bank
and
IMF
which
have
failed
elsewhere
in
the
world.
On
the
often-repeated
complaints
on
high
duty
on
automobiles,
Mr
Kamal
Nath
it
is
the
American
and
the
European
car-makers
who
want
protection
in
India
since
they
have
invested
heavily
in
the
country.
He said in the WTO negotiations which are stuck on agricultural subsidies, the G-20 proposal on tariff reduction is acceptable to India even though " I am not happy with it''. It is in the overall interest of the G-20 alliance that India has to move along.
Mr Kamal Nath said while India would be pursuing with the bilateral and regional trading agreements, it would be prefer a rule-based multilateral system under WTO. However, over 200 regional trading agreements do not come in the way of multilateral trading regime.
UNI