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India needs to cut industrial tariff: expert

Staff Reporter

The country's role at WTO meet lauded


  • Tariff in India higher than in any other Asian country
  • High duties will result in isolation
  • India reaping benefits of globalisation

    CHENNAI: A senior economist with the U.S. Department of Commerce on Monday commended India's role at the Hong Kong ministerial conference of the World Trade Organisation, but emphasised that the country needed to do more to reduce industrial tariff.

    "The average industrial tariff of 32 per cent in India is higher than in any Asian country," said Abdul Quader Shaikh, senior international economist at the Trade Information Centre, Commercial Service, International Trade Administration, of the U.S. Department.

    He was participating in a discussion after delivering a lecture `WTO and trade issues,' organised by the U.S. Consulate and the Tamil Nadu branch of the Indo-American Chamber of Commerce (IACC).

    High rates

    Asked why the U.S. maintained high tariff on products of export interest for developing and least developed countries, he said it also offered Generalised System of Preferences under which tariff-free imports were permitted.

    Underlining the need for India to reduce industrial tariff, he said high duties in the backdrop of globalisation meant isolation. "Opening up of the market is good, as it will also translate into access for the domestic companies.''

    Dr. Shaikh is also the regional coordinator for Africa, the Middle East and South Asia at the Trade Information Centre.

    Asked why the U.S. selectively reduced import duties while maintaining high rates on some products, including sugar, which India sought to export, he said, "It is a different story." Tariff on such products was in tune with the rates maintained by other developed countries.

    Irreversible process

    In his lecture, Dr. Shaikh said globalisation was an irreversible process. "You [nations]should board the train to make the most of the opportunities."

    India was already taking advantage of the process, signs of which were visible in collaborations it was entering into with the U.S. and other countries.

    G. Srikanth, a chartered accountant, who provides advisory service on anti-dumping cases, said the tough stand of the U.S. against removal of its export subsidies on cotton showed it wanted to protect 25,000 farmers, most of them corporates. But the removal of subsidies would benefit 11 million people in four West African countries.

    Chairman of the state branch of IACC Sankaran P. Raghunathan and its vice-chairman R. Anand spoke.

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