New EU GSP to effect India's export: MCC

"The proposed EU GSP to be operational from 2009 asks for greater value addition that would have a direct impact on Indian export to European countries including to Italy," Merchant Chamber of Commerce (MCC) President Anupam Shah said here today at an interactive session with Ambassador of Italy to India, Antonio Armellini.     

"Though we have not yet gone through the draft document yet, EU is trying to increase the value addition from the present level by 10 to 12 per cent depending on products," he said.     

Shah said quantifying the impact was difficult, but it could be 10 to 15 per cent.      Among the products exported to Europe that likely to face the heat are, textiles, garments, engineering, leather and marine goods.     

EU is also levying other non-tariff barriers among which the latest was carbon tax, Shah said.     

Shah and Armellini were both apprehensive about trade growth between Indian and Italy due to global slowdown.     

Bilateral trade in 2007 was up by about 40 per cent over 2006. "Under these circumstances I feel bilateral trade growth was likely to come down to 20-25 per cent," Shah said.