Lack of progress on ATC front at Doha upsets textiles ministry

S Venkitachalam

New Delhi, Nov 19: Both the textiles ministry and the industry are disappointed that the Doha ministerial declaration has failed to agree to implement the provision regarding granting an export growth rate higher than 27 per cent retrospectively from January 1, 00 instead of January 1, 02 as envisaged in the WTO Agreement on Textiles & Clothing (ATC).

Non-implementation of the “growth-on-growth” provision till the termination of the ATC by December 31, 04 means that the country’s textile exports, already reeling under the impact of the global slowdown, will take a further beating in the coming years, industry sources feared.

Commerce and industry minister Murasoli Maran who led the Indian delegation to the Doha conference has conceded that “we did not derive any comfort in the area of textiles” while summing up the outcome to reporters in Delhi on Friday last. He however said that “a working group is examining the provision and it is expected to submit its report in six months”, he stated, adding that a decision on the issue could be expected even earlier. The industry will lose heavily judging by the impact of the denial of the benefit till 04 when the integration of the sector into the global economy is completed, sources said.

The draft decision on implementation issues circulated along with the first draft ministerial declaration by the WTO General Council Chairman on September 26 had promised to implement the provision, but the Doha conference failed to fulfil it, sources added.

The integration of the textile sector into the global sector is to be effected in three stages. However, no quotas were removed during the first stage that started from January 1, 1995, when 16 per cent of the total import of textiles and clothing products were outside quotas. During the second stage, only some unutilised quotas were removed against integration of 17 per cent of the total volume of imports. Thus, quotas have been dismantled only in respect of four to 6 per cent of the total import of these items so far by developed countries since the start of the ATC.