| Date: |
19-04-2010 |
| Subject: |
India proposes to revive quantitative restrictions on imports |
|
NEW DELHI: Nine years after being forced to remove quantitative restrictions on imports under WTO, India proposes to bring changes in the domestic law enabling it to protect its industries against import surges.
The Standing Committee of Parliament has more or less approved a provision in a bill to amend the Foreign Trade (Development and Regulation) Act.
The committee was informed by the Commerce Ministry that the quantitative restrictions (QR) provisions are available to all members of the World Trade Organisation (WTO). For availing this facility, the country is required to have an enabling domestic law.
India had to remove QRs on over 700 items in 2001 after it lost a case in WTO against the US which had challenged these restrictions on import of large number of industrial and agricultural items.
Under the QR mechanism, a country can impose a restriction on imports up to a limit on items which are sensitive to its domestic industries.
The parliamentary panel was also informed that the QRs, after amendment in the Foreign Trade (Development and Regulation) Act would be in accordance with the WTO agreement on safeguards.
India runs a trade gap of $120 billion in 2008-09 and the changes in the law will allow it to correct the imbalance.
Source : The Economic Times
|