WTO text for liberal used item market

"This was not part of the mandate. The move is only supported by the US, while others have opposed it. Yet it found mention in the text," an Indian government official said here today.

India currently follows a restrictive policy on import of remanufactured goods, which are basically used machines, equipment and vehicles fitted with new spare parts and given a fresh coat of paint.

Experts say the current proposals on market access on remanufactured goods are not conducive for the Indian industry. "Definition of remanufactured goods is very crucial or else any second hand products can enter the country. The definitions in the current text are vague," said Biswajit Dhar, professor and head, Centre for WTO Studies, Indian Institute of Foreign Trade.

The Indian industry has been traditionally against allowing market access to second hand goods. "The definition of remanufactured goods has to be studied before it is allowed to be put in the draft texts. We are against liberalising trade in remanufactured goods," said T S Vishwanath, head, foreign trade policy division, Confederation of Indian Industry.

According to Dillip Chenoy, director general of the Society of Indian Automobile Manufacturers (SIAM), countries like Australia, New Zealand and the Philippines had been adversely impacted by the import of remanufactured automobiles.

"The current definition is not enough for distinguishing between plain second hand items and remanufactured goods. There is no specification on norms like value addition. Thus, no one will know what kind of goods are coming into the country. Ministerial meeting cannot decide on the definition and talks are needed in this regard," Chenoy added.