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Home > Business > Business Headline > Report

Basmati may not get status of champagne

Sidhartha | June 09, 2003 14:28 IST

As world trade talks gather steam, we look at the issues that are on the table and India's position on them.

Geographical indications

As part of his strategy to resolve some of the implementation issues before the World Trade Organisation's ministerial meeting at Cancun in September, WTO Director-General Supachai Panitchpakdi has decided to expedite the extension of geographical indications to products other than wines and spirits.

At an informal meeting of the Trade Negotiations Committee of the WTO in May, Panitchpakdi said he would take up the issue of geographical indications for further consultations with members.

Officials in the commerce ministry, however, said Panitchpakdi's intention seemed to be aimed at reducing the burden of trade ministers at the Cancun meeting in September, but the developed countries would try to scuttle the matter with other implementation issues.

The issue is being pushed by India and countries like Switzerland to ensure that products like Darjeeling tea and basmati rice get the same treatment as champagne. They want same items produced in different parts of the world to be treated differently. India and Switzerland have proposed the establishment of a multilateral register for items other than wines and spirits.

Countries like the US, Australia, Canada, New Zealand and Argentina are, however, opposed to the proposal and have said the extension of geographical indications to other products would raise costs for members and would be detrimental to consumers.

On the other hand, countries like India and Switzerland are of the opinion that geographical indications only help to identify a product as originating from a particular territory. An extension will only protect consumers from being misled, they point out.

Computer & related services

India has sought flexibility and transparency in visa rules of WTO members for professionals in computer and related activities. It has said short-term visas should be issued at short notice and there should be provisions for greater mobility for visa-holders.

In its initial requests for the ongoing services negotiations, India has asked for removal of restrictions on the number of professionals from the computer and related sectors going abroad. It has also said professionals from other countries should not be subjected to social security levies since these benefits do not accrue to them in the host country.

Global spending on infotech services and hardware is estimated at around $800 billion and Indian companies are significant players in the software and infotech-enabled services sector. Last week, the Cabinet committee on WTO had finalised a comprehensive roadmap for services negotiations.

"There is a need to put in place a mechanism that ensures speed and flexibility for movement of professionals. Otherwise, it does not make sense for us to undertake too many commitments," a commerce ministry official said.

Computer and related services include software implementation, consultancy services for installation of computer hardware, data processing and database services. India has said the benefits proposed by it should be extended to computer system designers and analysts, programmers, computer associate professionals, computer assistants and equipment operators.

In its proposal for the services negotiations, the US has sought increased access for temporary entry and stay of highly skilled workers along with faster processing of applications and multiple entry visas.

The European Union has proposed that it will set a sectoral floor on the number of professionals that can enter its member states. The floor is proposed to be set through bilateral negotiations. But India is not impressed with the offer and is concerned about the movement of its software professionals.

Indo-US talks

  • Commerce Minister Arun Jaitley will lead a delegation to meet US officials for discussing bilateral and multilateral issues.
  • India to garner US support for scuttling attempts to include Singapore issues, including investment, competition policy, transparency in government procurement and trade facilitation.
  • Country to seek US support for reduction in farm subsidies.
  • Issues related to the services sector, including extension of visa benefits for professionals, to figure in agenda.

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