Gujarat’s industry seem to be treading cautious on the "Sectoral Proposals" in World Trade Organisation (WTO) that aim to reduce custom duty either to zero or very low level in a phased manner.
Industry stakeholders fear that India's participation in sectoral proposals under WTO NAMA (Non-Agriculture Market Access) negotiations may not guarantee any effective market access to Indian industry even if the tarrifs are reduced to zero by developed countries.
Various representatives from chemical, pharmaceuticals as well as electrical and industrial machinery sectors in Gujarat today expressed concern over sectoral proposals during a consultation meeting for for WTO NAMA negotiations held in Ahmedabad.
The consultations were held by Federation of Indian Chambers of Commerce and Industry (FICCI) and Centre for WTO Studies, Department of Commerce.
Industry feels that despite lowering of tariffs to zero levels by developed countries, developing countries face a lot of non-tariff barriers in the developed markets, especially in case of chemical sectors. Chemical industry players have to face export restrictions even if they they are allowed to export to develop countries at zero level tariffs.
"In the absence of effective resolution of the issue of non-tariff barriers, Indian industry may not gain much by participating in these sectoral negotiations," a FICCI release said.
Under NAMA negotiations, proposals have been made by different countries to eliminate tariff in 14 sectors, including chemical, pharmaceuticals as well as electrical and industrial machinery.
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Collectively, these three sectors account for 43 per cent of total industrial investment and 41 per cent of total industrial employment in the organised sector.
FICCI stressed that participation in these sectoral initiatives is on a non mandatory or voluntary basis for each country.