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Home  » Business » India to back China on duty cuts

India to back China on duty cuts

By Sidhartha in New Delhi
July 08, 2003 20:31 IST
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India has decided to support China in its opposition for further duty reduction after completion of negotiations on industrial and agricultural market access under the World Trade Organisation.

The move is aimed at receiving China's support for India's stand on removal of restrictions on services trade and against inclusion of Singapore issues.

India's support to China is being seen as the first step towards building a common strategy.

During his recent visit to Beijing, Commerce and Industry Minister Arun Jaitley discussed with China the possibility of forging an alliance for multilateral talks on many areas like Singapore issues, trade-related intellectual property rights (Trips) and public health and special treatment for developing countries in farm trade liberalisation.

China is of the opinion that countries which have joined the WTO after the Uruguay Round negotiations have already undertaken commitments that are higher than those who joined the multilateral body prior to 1994.

While joining the WTO in 2001, China had undertaken commitments to reduce duties below those applicable to countries like India. China has been given a timeframe to fulfil the commitments, which is 2006 in most cases.

Government officials told Business Standard that the coverage of the present round of negotiations on the newly acceded members is a gray area with members divided on the issue.

Some WTO members are of the opinion that countries like China should also cut duties in line with the agreed formula.

The draft modalities for non-agricultural market access negotiations has proposed that newly acceded members like China will have a higher co-efficient for the tariff reduction formula, implying that they will have to reduce duties in smaller proportion.

The draft modalities have said a higher co-efficient has been proposed factoring in their "extensive" market access commitments and is also in recognition of the fact that the commitments are being implemented.

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Sidhartha in New Delhi
 

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