The ministry of commerce will work towards scrapping the registration evaluation, authorisation and restriction of chemicals (Reach) standards of the European Union at the WTO forum, according to Sanoj Kumar Jha, deputy secretary, ministry of commerce. Jha was speaking at the sidelines of the Ficci meeting here. The Reach standards, which mandate the screening of chemicals, pigments and the concentration of dyes in goods exported to the western trade block, are considered to be a technical barrier (TBT) and non-tariff barrier to trade (NTB) by the Indian export community.
According to industry sources stringent enforcement of Reach may amount to technical trade barriers to sectors like textiles & clothing, aerospace, automotive and chemicals that are export competitive in the EU region. Talking to FE, Jha said, ?Though it is considered to be a trade barrier?technical or non-tariff?it is not illegal. Even Argentina and Canada have conveyed their concern about Reach to the recently held TBT committee meeting of WTO. The ministry of commerce would strive for the total abrogation of Reach?.
Madhukar Sinha, professor at the centre of WTO studies, said the economic progress and the increasing export competi-tiveness of Brazil, Russia, India and China (BRIC), has made advanced importing economies harden their sanitary and phyto sanitary(SPS) standards like labels, markings, trademarks, packaging etc on goods imported from developing and under-developed countries. ?Earlier, goods from low-cost economies were considered to be of low quality. Now, with improved competition in manufacturing, low-cost economies are producing goods of the best standards with low labour and raw-material input costs that are barred by the advance countries using tools of TBT?, he said.
In their battle to restrict market access and free trade, legislations like the act on bio-terrorism and carbon tax could also act as a curbing mechanism, especially in the entry of goods like spices, processed fruits, leather and chemicals, Sinha added. Ruling out the possibility of incorporating too many safeguard provisions to counter TBT and NBT, he said the Indian economy has already demonstrated its resolve and resilience by clocking higher GDP growth and higher industrial growth amid the global slowdown. ?Despite the the unfriendly TBT and NBTs, Indian exports are tracing a higher trajectory?, Sinha added.