Addressing Ficci members on Monday, US deputy trade representative Susan Esserman expressed surprise over India's position on negotiations on industrial tariffs. India had taken the position that as the country did not have much stake in these sectors, it would not discuss the issue.

Refuting this, Esserman said that in at least two sectors of gems and jewellery and chemicals, India had distinct advantages. India's exports of gems & jewellery alone to the US amount to $1.8 billion.

She said there was disagreement between India and the US over quantitative restrictions (QRs), as the US believed India was unjustified in imposing high rate of QRs.

However, these differences should not overshadow complementary interests and both countries should work towards synergy for their mutual benefit.

Esserman also said the proposed WTO working group on labour had nothing to do with India's labour policies, and only wanted to ensure that international trade liberalisation should provide maximum benefits to working people all around the world.

Responding to a query by Ficci president Sudhir Jalan that it seemed the US was keen on pushing both labour standards and environment questions on to the WTO agenda, Esserman said the US only wanted that work force the world over should reap as much benefit as possible from the opening up of trade.

Jalan said the joint declaration of US President Bill Clinton and EU Commission president Romano Prodi seemed to bring in the fear that the US too was keen on incorporating labour standards and environmental questions in the WTO agenda.

Clinton and Prodi stated in their joint declaration last month that WTO ministers should agree to establish a working group on trade and labour. The proposed group would have a clearly delineated mandate, operate under the supervision of the general council, and produce a report by ministers, the joint statement had stated.