Cabinet Fails To Decide On Lifting Of Import Quota Curbs

A sharply divided Union cabinet yesterday could not take a decision on removing quantitative restrictions on imports as required under the World Trade Organisation (WTO) agreement, to which India is also a signatory. It was finally decided to take up the issue at a later date after differences could not be resolved during the two-hour meeting.

The government has to make up its mind on what should be its stand on the issue before June 16, when the WTO meets.

Finance minister P Chidambaram, industry minister Murasoli Maran and commerce minister B B Ramaiah wanted India to remove all quantitative restrictions on imports, arguing that once India had signed the GATT agreement, it could not keep quantitative restrictions. They also argued that India could not hope to access developed countries markets, if it kept its own market protected.

 

Agriculture minister Chaturanan Mishra and home minister Indrajit Gupta confronted this view on the ground that removing quantitative restrictions would open the floodgates for unrestricted agricultural imports, thereby, killing the Indian agricultural sector.

Prime Minister I K Gujral treaded the middle path, suggesting that India should try to hold further discussion with the WTO and seek some concessions by asking for more time. In this, he was supported by his principal secretary T R Satish Chandran and cabinet secretary T S R Subramaniam. Some ministers felt that India would be provoking the developed countries for confrontation if it went against the WTO after having signed it. Chidambaram discounted the fear of imported agriculture products flooding the Indian market by saying that India still had the option of using the tariff route to restrict imports.