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TI Cycles drags France to WTO over non-tariff barriers

TI Cycles, part of the Murugappa Group, has dragged the French government to the World Trade Organisation for imposing non-tariff barriers on the Madras-based company's bicycles.

''France is one of the most lucrative markets for our cycles. But the country has imposed NTBs in the form of an assembling policy stating that bicycles which are not assembled in France are not safe to be driven in the country. We have challenged this at the WTO and are awaiting an order,'' A Vellayan, managing director, TI Cycles, said today.

The company has also approached the commerce ministry in this connection. The ministry had assured the company that it will take up the matter with Dispute Settlement Panel.

The company has, for the time being, stopped bicycle exports to France. TI cycles was exporting around 22,000 cycles to the nation before NTBs were imposed.

Regarding its exports strategy, Vellayan said the company will mainly focus on Europe as the US is not a renumerative market. ''China beats India in that market as it has MFN (MFN = most favoured nation) status. Besides, shipping cost per cycles is $ 8 less from China than from India,'' he said.

However, the company is hopeful of achieving a combined export turnover of Rs 2 billion by the year 2004 from its cycles and chains businesses.

UNI

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