Non-Tariff Barriers In 16 Markets Hinder Exports

The commerce ministry has identified 16 foreign markets, accounting for 83 per cent of the total exports, which have imposed over eight types of non-tarif barriers on a range of products affecting the Indian

Industry.

According to a 1997 report on non-tariff barriers prepared by the ministry, the eight barriers are import policy restrictions, standards, testing and labelling rules, export subsidies, service barriers, lack of intellectual property protection, government procurement rules, investment and other barriers which include frequent use of anti-dumping and countervailing duty measures.

The ministry has also planned to take up the issue of these barriers bilaterally with several of these countries and multilaterally under the aegis of the World Trade Organisation (WTO) in some cases.

 

Certain cases have already been taken up under the dispute settlement mechanism. The ministry is also looking at making this report an annual feature along the lines of the United States Trade Representative (USTR) report on trade barriers, sources explained.

The barriers imposed by the 16 countries (see chart) have affected over 13 different industries in India. The main items whose exports have been adversely affected include fish, milk and meat products, fruits and vegetables, textiles and several steel products.

Specifically, the European Unions regulations in fish imports, discrimination in imports of mangoes, bananas, potatoes and grapes by the US, EU and Japan, the multi-fibre arrangement and textiles barriers by EU and the US, tobacco imports into Japan, milk and milk products into the European Union , among others.

Anti-dumping and countervailing duty action has also been identified as a major non-tariff barrier. In the case of the European Union, the problem has been persisting for a while and the Indian government has taken it up with them.

As far as the US goes, the report points out that at least eight-odd cases have been initiated in the steel and steel products industry including stainless steel wire rods and bars, iron metal castings etc.

The report points out that the Understanding on Rules and Procedures governing the settlement of disputes provides the procedures for tackling non tariff barriers but in several cases the issue has to be taken up bilaterally.

As far four of the countries - China, Russia, UAE and Saudi Arabia - are concerned, the cases have to be taken up bilaterally since they are not members of the WTO.

Ironically, the report points out that Indian goods face non-tariff barriers due to lack of intellectual property protection from countries like China. India itself, however, is fighting a dispute filed by the US on the same count.