Mar 27, 1998

EC COMPLAINS OF INDIAN EXPORT RESTRICTIONS ON RAW HIDES AND

SKINS

Geneva, 25 Mar (Chakravarthi Raghavan) -- The European Communities have sought consultations with India claiming that the Indian government had embargoed exports of raw hides and skins, thus limiting the access of EC industries to raw and semi-finished materials. The EC request for consultations, dated 11 March, sent to the WTO secretariat on the 16th, has been issued as a document of the Dispute Settlement Body and became available to the media Wednesday.  

India's WTO mission made no comment, but does not appear to have received any such request for consultations, the first stage for raising any disputes. However press reports have said that the EC Commission has sought to discuss it bilaterally with India at Delhi and Brussels.  

If this issue goes to a panel, it will highlight even further the complete colonial structure of international trade, and the asymmetry and inequity of the GATT system -- in that the EC through tariff escalation can protect its leather goods industry from imports of value-added products from developing countries, but insists on its right to have access to raw materials of other countries. 

In its request for consultation, circulated to the DSB, the EC has said there is an export embargo in place in India on exports of raw hides and skins. The EC communication says in this connection that India's export-import policy for 1997-2002, has set up a negative list for export of several commodities. Under these provisions, raw hides and skins, all types excluding lamb for skin, are products whose export requires an export licence. However, the EC contends, export licences are systematically refused and trade statistics show that there is no significant exports for these commodities. There is also no evidence that the restrictions are temporary or that they have the objective of meeting a critical shortage of products essential to the exports of India, and thus is contrary to Art XI of the GATT.  

Art XI.1 of the GATT 1994 prohibits any export restrictions, other than by way of duties, taxes or other charges. However, Art XI 2. (a) enables export prohibitions or restrictions "temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party."  

The exception allowed is thus one "essential to the exporting country, and not exports of the country.