The letter comes in the backdrop of little headway being made in Nama in the Doha Round of world trade talks, as developing countries like India are unwilling to accept the provisions of the draft text.
Criticising the proposals in the draft text, released on May 19, Ficci Secretary General Amit Mitra said in the letter: "We at Ficci feel that the revised text of Nama has belied the expectations of Indian industry. The text has disregarded the development dimension of the Doha Round by restricting the flexibilities for developing countries and also by ignoring the core mandate of the Doha Round i.e. Less Than Full Reciprocity (LTFR) principle,".
LTFR was included in the Doha Mandate to ensure that developed countries undertake higher levels of duty cuts than developing countries.
Ficci is worried by proposals in the Nama text, as per which developing countries will not be able to shield sensitive industrial products in sectors lie auto-components, textiles and chemicals from tariff reduction. In effect, the provision in the draft text will not allow protection to industrial goods in one particular sector, and will have to be distributed to other sectors as well. As a result, Indian industries in need of protection will be vulnerable to cheap imports from other countries.
Urging Lamy to ensure that such clauses are not inserted in the Nama draft text, Ficci said that the current proposals will hurt Indian Small and Medium Enterprises in certain sectors.
Ficci also criticised a proposal in the draft, which links tariff reduction in industrial goods of developing countries to the concessions given by it in particular sectors. Known as "Sectoral" initiative, the provision has been made mandatory in the latest Nama draft text.