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"Chinese producers still have the upper hand, but it "At the same time that it is making great efforts in
seems understandable for the Indian government liberalising foreign investment rules, India should
to be eager to protect local industries," the write- also open up to foreign competition to facilitate
up claimed. the development of domestic manufacturing," it
said.
But it is wrong to resort to trade remedy measures
to drive Chinese products out of the local market, (Source: http://timesofindia.indiatimes.com/business/india-
it added. business/commerce-minister-nirmala-sitharaman-holds-
candid-talks-with-chinese-counterpart-on-growing-trade-
eficit/articleshow/59863944.cms dated 1st August-2017)
5. SEVERAL COUNTRIES INCLUDING INDIA ADOPTING
DISCRIMINATORY TRADE POLICIES'
Washington, Aug 2: Alleging that several ITI alleges that tariffs on technology products are
countries, including India and China, have inconsistent with India'sWTO commitments. "India
turned to discriminatory policies that unfairly continues to raise tariffs on an increasingly wide
disadvantage American companies, a US-based range of technology products, including products
technology group has urged the Trump adminis- where it is bound under the WTO rules to apply
tration to overcome barriers to digital trade. zero tariffs, such as mobile phones, base stations,
routers, and ink cartridges," the report said. "Our
The group has also named South Korea, Russia, view is that India is blatantly acting in a manner
Vietnam, Canada, Mexico and Indonesia that that is inconsistent with its WTO commitments.
have adopted discriminatory policies against US We encourage USTR to consider enforcement
companies. actions, such as revoking India's GSP benefits or
initiating WTO dispute settlement proceedings,
"Multiple foreign governments have turned to to address India's behaviour as soon as possible,
discriminatory or otherwise harmful policies as we anticipate that India will continue to raise
that unfairly disadvantage American companies tariffs on additional technology products," it said.
and impede the ability of technology products
and services to drive growth," Information Objecting to the recent Make in India initiative of
Technology Industry Council (ITI) said in its 'report the Indian government, the report said that the
to the president on Trade Agreement Violations order released by the Department of Industrial
and Abuses'. Rules that treat foreign firms and Policy and Promotion (DIPP) in the summer of
local companies differently are in India, China, 2017 obliges government agencies to provide
Colombia, Indonesia, South Korea, Russia and procurement preferences to locally produced
Vietnam, the report said. Technical barriers to products for all public procurement, varying by
trade, standards and conformity assessment are in cost thresholds. In order to qualify for a local
the EU, India, Mexico and Vietnam, and tariffs and product, it must have 50 per cent local content,
fees on technology products or digital products calculated by the product's bill of materials, it said.
in the EU and India, it said. Burdensome customs Governments around the world are preventing US
regulations are in Canada and Mexico, ITI said, tech companies from selling their products and
alleging that investment restrictions, including services abroad; requiring the "localisation" of
local presence requirements, are in India, China, data, software, services and hardware within their
Indonesia, and Vietnam. There is restricted access borders; forcing technology transfer; and using
to government procurement markets in India and regulatory and other barriers to put a thumb on the
South Korea, it said. In the India annex of the report, scale in favour of their own firms, it said. "These
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