The Hindu : Karnataka / Bangalore News : NAMA belies hopes of component makers

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NAMA belies hopes of component makers

Special Correspondent

Association says core mandate of Doha Round ignored
‘Proposals trample upon aspirations of SMEs’

BANGALORE: The Auto Component Manufacturers’ Association has (ACMA) opposed a few clauses added to the Non Agricultural Market Access popularly known as NAMA in the World Trade Organisation negotiations on industrial products.

According to a press release from the ACMA here on Friday, the WTO negotiations on industrial products appeared to be veering off the mandate negotiated during the Doha Round.

The release said the revised NAMA Draft Modalities text released on May 19 belied the expectations of a majority of the WTO members, especially the developing countries.

The text allegedly ignored the core mandate of the Doha Round namely less than full reciprocity (LTFR) in reduction commitments and comparability.

ACMA chairman Srivatsram has stated that “the equity and balance to the development-riented Doha Round can only be achieved if developed countries agree to a coefficient cut between 49 per cent to 51 per cent on their dutiable bound rates and the developing countries allowed to choose to take comparable cuts in rates.”

Mr. Srivatsram said the “anti-concentration clause’ reflected in the NAMA revised text would maim the sensitivities of developing countries, which were primarily premised on livelihood concerns.

“The auto component industry feels that such proposals trample on the economic aspirations of millions of industrial workers in the small and medium enterprises (SMEs) in the component industry. Unless NAMA flexibilities address the concerns of the industry that it sought to protect, it rendered the negotiations meaningless,” he added.

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