 "Difficult to support imbalanced work on WTO's Bali declaration: Rajeev Kher")
Amid fears of a sub-normal monsoon this year, the commerce department is keeping a watch on the prices of onions and milk on a daily basis to decide whether a minimum export price (MEP) is to be imposed on these. Speaking to reporters, Commerce Secretary Rajeev Kher says for now, the department isn't considering increasing the import duty on sugar. He says the situation on the wheat and rice fronts is comfortable and adds the minimum alternate tax (MAT) and dividend distribution tax (DDT) on special economic zones (SEZs) should be scrapped. Edited excerpts:
On agricultural exports
Our approach is broadly nuanced by the fact that these should be open as far as possible. But clearly, it is impacted by the attenuating factors of domestic demand and supply. We have reviewed this and found that currently, there is no cause for worry over wheat and rice.
On onion and milk price
On pulses
These are anyway banned, except for kabuli chana (chickpea) and organic pulses, up to 10,000 tonnes.
On sugar import tax raise
At present, we are not looking at that. The food ministry has not spoken to us officially on the subject.
On MAT and DDT on SEZs
We have been talking to the finance ministry. We have strongly recommended the withdrawal of MAT and DDT. There is clear acknowledgement that SEZs are a potential tool of industrial development, manufacturing and exports. Imposition of MAT and DDT has suppressed the potential of SEZs.
On WTO
As a follow-up to the Bali process, follow-up action was to take place at WTO. The agreement was by July 31, trade facilitation protocol would be negotiated and an agreement would come into force thereafter. While the work on this seems to be gaining ground, developments on two other aspects - finding a permanent solution to food security and a whole lot of issues relating to less developing countries (LDCs) - have not been in the manner in which India and many other developing countries would like them to be. The focus has moved to what is in the interest of developed countries - a trade facilitation agreement. The pace of the work should be the same on trade facilitation, in terms of trying to achieve a single undertaking on all issues. We have informed the membership that this manner of development will make it very difficult for developing countries, including LDCs, to lend their support to the imbalanced process of work.
On dissolution of the Cabinet Committee on WTO Matters
The matter will now be decided by the Cabinet Committee on Economic Affairs (CCEA) or the Cabinet. That is fine. We, as a department, require an institutional mechanism. If CCEA or the Cabinet is available to us, it is fine. I don't see any reason why there should be a Cabinet committee on WTO. How many such matters do we take to the committee?
On EU ban on mangoes
In September, an EU team is likely to visit us. At that time, they will go through the technical infrastructure and the processes that certify fruits and vegetables.
On anti-dumping duty on solar energy cells from the US, China, Malaysia and Taiwan
The process of looking into requests of anti-dumping duties is a well laid-out, statutory, quasi judicial process. It has been clearly established that there is dumping on account of solar cells and panels from certain countries. There is a clear case for recommending anti-dumping duties. We believe imposition of anti-dumping duties will clearly give a signal to the domestic industry to gear up for demand in the sector. It also opens opportunities for foreign investors in the solar cells- and panels manufacturing sector in India.
On Indo-US trade
We will engage in bilateral discussions very soon. The dates are yet to be finalised. Official-level talks could be held in July and ministerial talks, through the India-US Trade Policy Forum, might be held in October. There are a whole lot of trade issues such as market access and issues of rules; everything can be discussed. The venue,India or US, is yet to be decided.
Trade with Iran
It has been encouraging. There are two areas. First, typical merchandise trade and second, project export, which is more interesting. Iran recognises there is accumulation of proceeds on its behalf and it wants to use it as much as it can. We are negotiating with them on project exports such as laying rail tracks. Some of these have materialised; others are in the process. In rupee terms, there is enough availability for us to keep trading.
On agricultural exports
Our approach is broadly nuanced by the fact that these should be open as far as possible. But clearly, it is impacted by the attenuating factors of domestic demand and supply. We have reviewed this and found that currently, there is no cause for worry over wheat and rice.
On onion and milk price
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We are monitoring the price trends very closely. If required, we will take adequate measures. At present, there is no MEP (minimum support price). We are observing both wholesale and retail prices on a daily basis and will take a decision on the matter.
On pulses
These are anyway banned, except for kabuli chana (chickpea) and organic pulses, up to 10,000 tonnes.
On sugar import tax raise
At present, we are not looking at that. The food ministry has not spoken to us officially on the subject.
On MAT and DDT on SEZs
We have been talking to the finance ministry. We have strongly recommended the withdrawal of MAT and DDT. There is clear acknowledgement that SEZs are a potential tool of industrial development, manufacturing and exports. Imposition of MAT and DDT has suppressed the potential of SEZs.
On WTO
As a follow-up to the Bali process, follow-up action was to take place at WTO. The agreement was by July 31, trade facilitation protocol would be negotiated and an agreement would come into force thereafter. While the work on this seems to be gaining ground, developments on two other aspects - finding a permanent solution to food security and a whole lot of issues relating to less developing countries (LDCs) - have not been in the manner in which India and many other developing countries would like them to be. The focus has moved to what is in the interest of developed countries - a trade facilitation agreement. The pace of the work should be the same on trade facilitation, in terms of trying to achieve a single undertaking on all issues. We have informed the membership that this manner of development will make it very difficult for developing countries, including LDCs, to lend their support to the imbalanced process of work.
On dissolution of the Cabinet Committee on WTO Matters
The matter will now be decided by the Cabinet Committee on Economic Affairs (CCEA) or the Cabinet. That is fine. We, as a department, require an institutional mechanism. If CCEA or the Cabinet is available to us, it is fine. I don't see any reason why there should be a Cabinet committee on WTO. How many such matters do we take to the committee?
On EU ban on mangoes
In September, an EU team is likely to visit us. At that time, they will go through the technical infrastructure and the processes that certify fruits and vegetables.
On anti-dumping duty on solar energy cells from the US, China, Malaysia and Taiwan
The process of looking into requests of anti-dumping duties is a well laid-out, statutory, quasi judicial process. It has been clearly established that there is dumping on account of solar cells and panels from certain countries. There is a clear case for recommending anti-dumping duties. We believe imposition of anti-dumping duties will clearly give a signal to the domestic industry to gear up for demand in the sector. It also opens opportunities for foreign investors in the solar cells- and panels manufacturing sector in India.
On Indo-US trade
We will engage in bilateral discussions very soon. The dates are yet to be finalised. Official-level talks could be held in July and ministerial talks, through the India-US Trade Policy Forum, might be held in October. There are a whole lot of trade issues such as market access and issues of rules; everything can be discussed. The venue,India or US, is yet to be decided.
Trade with Iran
It has been encouraging. There are two areas. First, typical merchandise trade and second, project export, which is more interesting. Iran recognises there is accumulation of proceeds on its behalf and it wants to use it as much as it can. We are negotiating with them on project exports such as laying rail tracks. Some of these have materialised; others are in the process. In rupee terms, there is enough availability for us to keep trading.