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FM slams developed nations on trade barriers

Union Finance Minister Yashwant Sinha has warned the European Union countries against continuing with the anti-dumping measures on Indian goods as they were not in the spirit of the WTO agreement, and urged them to open up their markets for Indian exports.

Sinha launched a vitriolic attack on developed nations here Monday for erecting trade barriers at a time when New Delhi was committed to dismantling them.

"By March 31, 2001, the last vestiges of quantitative restrictions will have gone and all items will be freely imported into India subsequent to certain tariff rates," Sinha told foreign and Indian businessmen at a global investors meeting in Bangalore.

"We are opening our markets. Developed countries are not following suit. We are continuously taking this up in international forums to strive for a rule-based open trading system," Sinha said.

"The trading system should be just and equitable to the entire world and not weighted in favour of one set of nations," he said.

Inaugurating the two-day Global Investors' Conference here on Monday, Sinha lamented that the EU nations had imposed around 13 per cent anti-dumping duty on all Indian goods though they constitute only 1 per cent of their total imports.

"At a time when India has decided to lift quantitative restrictions, or QRs, on goods from other countries, many of the developed countries, including the EU are putting up sophisticated barriers to block Indian exports. This is a challenge to be fought on a global scale as such inequality is not acceptable to India."

Referring to the decision of the Union commerce ministry to lift QRs on all the remaining 750-odd items from April 1, 2001, in accordance with the WTO regulations, Sinha has sought a global level playing field for Indian exports so that they can compete globally on equal terms.

"To impose unfair trade or non-tariff barriers against an India opening up its markets for imports and investments in a bid to globalise its economy, is nothing but a continuation of the colonial hegemony," Sinha remarked, adding that the country would not rest till all kinds of discriminations and barriers against it were not removed.

Flying directly into Bangalore from San Francisco in the US to kick-start the month-long Global Investors' Meet, or GIM, organised by the Karnataka government in co-ordination with the Confederation of Indian Industry, or CII, and being attended by over 1,000 delegates Sinha has declared that the economic reforms had come to stay, and there was no looking back even as India emerges from the shadows of the 20th century to become an economic super-power in the first decade of the new millennium.

Lauding the efforts of Karnataka government in opening up for global as well as private investments, Sinha assured techno-savvy chief minister-turned CEO S M Krishna of the central government's support in all his endeavours to revive the sagging fortunes of the state, and become one of the favourite destinations of investments from overseas as well as from other parts of the country.

"If China had succeeded in attracting global investments to the tune of $ 35-40 billion during the last decade of the 20th century, the first decade of the new millennium will belong to India as the world has realised and accepted the intrinsic strengths of the largest democratic country with one billion population and plenty of opportunities to tap the huge potential.

Affirming the commitment of the NDA government in carrying out the second generation of reforms, Sinha recalled the plethora of measures taken by the Centre during the recent past to accelerate the ongoing socio-economic development and achieve a growth rate of 8-10 per cent of the GDP in the coming years.

Earlier, Krishna made a audio-video presentation on the policies and steps being taken by the state government to attract global investment along with the key areas that beg for such funding. These include infrastructure projects such as power, roads and highways, drinking water, airports and sea ports, knowledge-based industries, including IT, bio-technology, pharmaceuticals, agro and food-processing industries, and tourism across the state.

Recalling his efforts to put the state back on the road to economic growth, Krishna told the huge gathering that ever since he took over the reins of the state eight months ago, he had been toying with the idea of showcasing the enormous opportunities Karnataka presents for global and domestic investors.

"My participation in the World Economic Forum at Davos early this January has convinced me the popularity of Bangalore and the awareness of Karnataka as a state of immense potential in the emerging areas of the new economy, exploding on the global arena owing to the convergence of technologies and global markets."

The inter-actions at the summit helped Krishna to get an insight into the expectations of global investors vis-a-vis the strengths and advantages of Karnataka as an investment destination. Despite a decade of liberalisation, privatisation, and globalisation, the flow of investments to the country in general, and Karnataka in particular have been inhibited by the lack of world class infrastructure, archaic administrative machinery, antiquated labour laws, and dearth of funds, if not human resources.

"The aim of convening this GIM is to address these concerns and provide a platform for all to arrive at a mutual consensus on what can be done together for making Karnataka a front-runner in attracting global investment in its socio-economic development."

India has opposed a new round of World Trade Organisation trade talks arguing developed countries have yet to fulfil their obligations under the Uruguay Round.

India complains that developed countries unfairly use high tariffs, quota restrictions and anti-dumping duties to restrict Indian agricultural and textile exports.

Last month, the European Commission launched an anti-dumping investigation into imports of polyethylene terephthalate, or PET, film from India and South Korea.

Additional inputs: UNI

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