3:58 AM Jan 25, 1994

US, INDIA REACH BILATERAL MFA ACCORD

Geneva 25 Jan (TWN) -- India and the United States have reached a bilateral accord under the Multifibre Agreement, according to information received here.

The agreement is reported to include an 'anti-circumvention' clause with 'triple debit', similar to the provisions in the agreements that the US has recently concluded with China and Pakistan.

Under the clause when textiles and clothing products of an MFA country are exported through third countries by false origin papers and other subterfuges to the US, and the US authorities discover it, there is a penalty levied in the form of debit of the real country of origin quota by three times the circumvented imports through third countries.

The US has been pressing for such a provision in its bilateral accords, and had been resisted last year by China, Pakistan and India.

In negotiations (after the conclusion of the Uruguay Round) for bilateral accords, the US threatened to impose against China unilateral quotas under the MFA, both to cut back its quota and provide against circumvention. After further negotiations, China was forced to give in and agreed to a freeze and cutback of its exports and to the anti-circumvention provisions.

Armed with this, the US also secured a similar provision in its bilateral with Pakistan, but providing for a small, miniscular growth rate.

India, the last left in the process and which had been vehemently opposing US demands and unilateralism, both in the Round and in the bilaterals, appears to have compromised by agreeing to the anti-circumvention clause, but is reported to have secured in return growth rates of about 11 percent in several of its export quota items.

Full details of these agreements are to be notified by the US in due course to the Textile Surveillance Body under the GATT.

Whether in return for this growth rate, India will also provide some access to the Indian market for some US textiles and clothing exports remains to be seen. The market access negotiations are continuing bilaterally, with 15 February as the date for filing of country scheduled, and the period till end March thereafter for verification.