The Hindu Business Line : Concern over `Simple Swiss' formula in WTO talks

The Federation of Indian Chambers of Commerce and Industry has expressed concern over NAMA (Non-Agricultural Market Access) Chair's remarks in the draft modalities that `Simple Swiss' formula for tariff reduction has found more support in World Trade Organisation (WTO) negotiations.

The FICCI said that `Simple Swiss' formula for tariff reduction could result in unusually steep reductions in tariffs for which Indian businesses may not be prepared at the moment.

Flexibilities

It has also expressed concern over remarks related to Paragraph 8 flexibilities. Paragraph 8 provides flexibilities to developing countries in terms of lesser reduction in tariffs for certain products than the reduction that will be applicable in general for other products.

Further, it said the formula in NAMA for developed and developing countries should be such that it results in average tariff percentage cuts comparable to the cuts in agriculture.

The Confederation of Indian Industry has also pointed out that the Ministers at the mini-ministerial of WTO slated for next week will need to ensure that the final agreement does not dilute the flexibilities and the special and differential treatment available to developing countries.

In respect to NAMA, the CII does not support negotiations for tariff elimination or larger tariff cuts for specific industrial sectors and is of the firm view that any discussion on sectoral negotiations, even on a non-mandatory basis, should follow a decision on the formula to be adopted.

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