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Home > Business > PTI > Report

Textiles ministry for lower tariffs by developing countries

January 28, 2003 13:31 IST

The textiles ministry is in favour of a reduction in textiles tariffs under ongoing World Trade Organisation negotiations on market access, but said overall reduction in the case of developing countries should be lower as compared to developed countries.

Official sources told PTI that the ministry had informed commerce ministry that while it favoured reduction in tariffs, since textile tariff in case of developing countries is low, overall reduction should be less in the case of developing countries while more in the case of developed countries.

Textiles ministry is also not positively inclined to accept proposals of Japan and European Union since these proposals ask the developing countries (which have high bound rates) to reduce bound rates drastically, while the corresponding reduction in developed countries bound rates will be much less, they said.

"Even where the bound rates are lower, the percentage reduction will be higher in the case of developing countries while being lower in the case of EU and Japan," sources said.

The ministry has also said developed countries should be asked to bring down tariffs to zero duty level for environment friendly goods such as jute, coir, handloom items, cotton garments and handloom fabrics in order to encourage good environmental policy.

On the issue of specific duty, the sources said the general view was that if all the countries agree to abolish specific duty, India may also do so.

Sources, however, added that in case some countries keep specific duty, India may also continue to have specific duty and every new tariff line, where India agrees to bind the level, the specific duty will also be brought in.

© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.



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