India Gets Time To Open Up Consumer Goods Sector

This issue was raised by US deputy trade representative Jeffrey Lang at a meeting with commerce secretary Tejendra Khanna here yesterday.

India indicated that it expected to get a political mandate to go ahead with the liberalisation by then.

The BoP consultations are held every four years to review whether direct import controls by member countries are justified. Last October, India was given time till this end of October for the review.

At the January meeting, India will be under pressure to indicate a time table for the removal of direct controls.

In view of this, the ministry has already prepared a cabinet note on the time schedule for the removal of quantitative restrictions on consumer goods imports. The note is specifically on the time schedule to be adopted for easing of these controls.

The note suggests that goods are moved from the restricted to special import licence (SIL) list and then from the SIL list to the open general licence list within a period of 5-7 years. It has suggested that the peak tariff rate could apply to these items. A small negative list could be maintained for security and other reasons.

Lang expressed the US