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US allows duty free access to Indian goods

In a significant concession, the United States on Wednesday allowed duty free access to 42 Indian products and said it was keen to set up a bilateral structure to further regular dialogue on trade policy issues.

"We would like to leave with some sort of bilateral structure to take trade issues forward and engage more frequently, positively and substantially at an appropriate level," an official accompanying the US delegation headed by Trade Representative Robert B Zoellick said.

The setting up of a trade policy-working group to be headed by the US Trade Representative was also proposed as part of efforts to set up a bilateral structure for more frequent engagements in trade policy.

The announcement granting duty concessions to specified products in jewellery, leather and carpets was made by Zoellick after a meeting with Commerce and Industry Minister Murasoli Maran.

The official said these concessions would remain valid under Generalised System of Preferences provisions.

Indian exports of these 42 products are currently estimated at around $540 million, which is expected to cross $600 million due to these concessions.

Clarifying the timing of the announcement, the official said the move (to grant these concessions) showed President Bush's determination to identify his priorities. "India clearly is a priority," he had earlier said.

Emphasising the role of India in the WTO the official said India's concerns regarding implementation had been well taken and the US delegation would on its return look at the implementation agenda.

The US official said the meeting between Maran and Zoellick "discussed issues relating to GSP, WTO and looking to the future".

Emphasising the need for a dialogue on WTO issues, he said, "it is important that we do not talk past each other, but with each other. India has an important role to play at the WTO. It should take its place at the table. We feel that Doha is an important opportunity to launch a new round of trade liberalisation.

The reason for us to believe that is it will give a new momentum and emphasise to global trade liberalisation, which is good for developing countries," he said.

"WTO can be an endless talk-shop, a round is good excuse for focus on an achievable agenda," he said.

Reiterating the need for a success at Doha, the official said, "if we are not successful, it is fair to say that the international trading system will be the loser and the major losers will be members of the developing world. So it is important for India to voice its concern.

There are, however, areas where both India and US have common concerns particularly agriculture, industrial tariffs, e-commerce, services as well as environment concerns, he said.

"The US is opposed to new barriers being thrown up under environment," he said, adding that labour related issues, as well anti-dumping cases did not figure in today's meeting.

It was ultimately India's choice to take up position on WTO; the official said and emphasised that both sides would work towards finding a common ground. "The USTR has not taken any position we are here to listen and to learn," he added.

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