New Delhi, Nov 24: The textile monitoring body (TMB) set up to review the implementation of the agreement on textiles and clothing (ATC) signed under the Uruguay Round, tends to be divided into two distinct blocks, importing and exporting members of WTO on major disputes. Under the agreement, the entire world trade in textiles and clothing is to be integrated into the global economy, GATT within a 10-year time frame from January 1, 1995.The result of the division in TMB is that on many issues, both the blocks end up issuing a finding instead of making a specific recommendation.And in some of the serious disputes, they merely admit that they they have no consensus, reveals a proposal forwarded by India to the WTO General Council on the implementation of ATC as a run up to the Seattle ministerial conference.
"The apparent division of TMB into two blocks and its tendency to wash its hands off serious disputes would tend to erode its relevance and also convert it into a sort of a deal making body", laments the paper. Where the parties refuse to make or accept a deal, the dispute goes to a WTO panel, whereas the would like the matter to be handled directly by the dispute settlement body of WTO as in the case of other sectors. The implementation of ATC remains tardy so far, though India may come under increasing pressure to further liberalise trade in this sector.
While India had set much store in a meaningful integration of the entire world trade in textiles and clothing into GATT, US and the European Union have not spared any item of specific restraint from restrictions. This is discernible from the operation of the agreement in the first two stages of removal of quotas.
"In textiles, an area of particular interest to many developing countries, there is no meaningful integration of restrained items even after five years of the operation of the agreement from January 1, 1995", commerce and industry minister Murasoli Maran said while expressing his concern during his recent pre-Seattle meeting in Lausanne.
Quite apart from the "back-loaded" feature of ATC, the integration of the textile products into global trade "has not been in keeping with the spirit of the agreement" he regretted.
The paper notes that after the finalisation of ATC in December 1993, EU had pre-empted its impact by accelerating the anti-dumping duty drive in the textile sector during 1994. Repeated action was initiated by it on imports of unbleached cotton fabrics from India. Duties were imposed on cotton type bed linen.
Anti-dumping and anti-subsidy actions had also been initiated by EU on imports of polyester textile fibre yarn from India.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.