The Hindu : National : Commerce Ministry expects better market access

Online edition of India's National Newspaper
Monday, Jan 02, 2006

National

National

Commerce Ministry expects better market access

Special Correspondent

Assessment based on declaration adopted at the Hong Kong Ministerial meet

New Delhi : Industrial products from developing countries such as India will get greater market access as a result of the Ministerial Declaration adopted at the WTOs Ministerial Conference at Hong Kong. .

This is the assessment of the Commerce Ministry, which has noted that it provides for reduction and elimination of tariff peaks and tariff escalations, in particular industrial products of export interest to developing countries.

In a statement issued here on Sunday, the Ministry said the last year witnessed a surge in exports while the South Asia Free Trade Area (SAFTA) had been set with effect from today. Though Pakistan was yet to ratify the treaty, the new free trade grouping was expected to reduce existing tariffs to less than five per cent to boost trade among the SAARC member countries. Sensitive products covering agricultural items, textiles, pharmaceuticals, small-scale industries, would , however, be exempt from the trade liberalisation programme.

On the issue of the WTO ministerial, the Ministry argued that interests of farmers were fully protected as the declaration clearly provides that developing countries would be able to self-designate an appropriate number of tariff lines as special products based on criteria of food security, livelihood security and rural development.

Domestic support given to farmers in countries such as India having a preponderance of small farmers had also been fully preserved, it said.

The Ministry pointed out that India's merchandise exports grew at an accelerated pace during 2005, with exports continuing to record double digit growth during April-November 2005-06. It was anticipated that the export target of $92 billion for 2005-06 would be exceeded.

Regarding special economic zones, it said 71 SEZs had been approved, of which several were operational. The signing of a Comprehensive Economic Cooperation Agreement with Singapore in June 2005 was highlighted as an important initiative. It noted negotiations for the establishment of a free trade area going on with a number of countries, which include the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, comprising Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand; ASEAN and Thailand.

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