WTO Vs sovereign interests

By K Viswanatha Rao

Aim of the World Trade Organisation, WTO, of which India is a member, is to ensure free trade throughout the globe. By free trade is meant freedom to import and export anything, anytime.

But unimpeded imports are not an unmixed blessing. These might affect domestic manufacturers. Two methods are adopted to curb imports-levy of a high duty (in the recent past India levied more than 300 percent duty on some items) and restrictions on the importable quantity. While a complete ban is resorted to in rare cases, imposing quantitative restrictions (QRs) is the next best.

But, what is best is not what is compatible with WTO rules and regulations. Naturally therefore, India ageed to fall in line. It wanted to move in a phases and over a period of five or so years.

The WTO was unwilling to let India have its way. It insisted on lifting of restrictions in as short a time frame and in as few phases as possible. So, it was agreed, by mutual consent, to lift restrictions in two phases- the first with effect from 2000 and the second by 2001.

India, for unidentified and for some flimsy reasons, had a long list-hold your breath- of 1429 items, the import of which was quantity-wise restricted. Indian manufacturers, economist, analysts and traders felt that lifting the QRs would mean opening the flood gates to imports and that imported goods would occupy all the available shelf space at the market place.

As a response to their concern, the government announced lifting of QRs on only 714 commodities with effect from April 1, 2000. The move elicited what in journalese is called a ''cautious welcome''.

One year down the line, the fear proved to be unwarranted. The import picture is diametrically opposite to what one felt would happen.

A slight digression is warranted at this stage of the discussion on QRs to take a peep into India's imports. The Bill for non-oil imports has been declining in recent years. In the year 1998-99, the import payment was just about eight per cent more than the bill for the previous year.

In 1999-2000, the imports registered a two growth over the 1998-99 bill. Last fiscal, that is 2000-2001, was the first year of phased lifting of QRs. Yet the imports did not look up but nose-dived by around 14 per cent.

Some senior commerce ministry officials explained, rather explained away the unexpected downslide in imports thus: The Commodities, on which quantitative restrictions were lifted, were useless items. If this indeed is the case, why did the government clamp QRs on such items in the first place ?

With effect from this April, quantitative restrictions on the remaining 715 items were lifted. Again there was the fear of imports flooding the Indian market. As if in response, the Government has set up what it calls the War Room in Udyog Bhavan to keep a tab on the market trends.

A month later, in May, orders went out to allow import of 300 items- Freely, of course- only through eleven points. These designated points are the four metro airports, six seaports (Kochi, Mumbai, Nheva Sheva, Kolkata, Vizag & Chennai) the Inland Container Deport (ICD) at Tughluqabad, near Delhi.

Within a fortnight, the government withdrew the order. Why ? It was flawed in its entirety. Also the trade data for April 2001 did not show a trend different from the previous year. In fact, the imported cost of non-oil commodities was less that in April 2000.

Interesting, indeed very puzzling is the import scene. The cue to the mystery unfolded in early June. Slowly. Unpretentiously.

True, the lifting of QRs did not mean a heavy inflow of all the 1429 goods that were taken off the restricted list. What was happening instead was that some select commodities were flowing in such heavy quantity that Indian manufacturers began to cry foul aloud.

The Directorate General of Anti-dumping and Allied Duties (DGAD) looked into the phenomenon. It identified 68 cases of dumping. Chemicals and petro-chemicals topped the list with 39 cases followed by pharmaceuticals- nine, steel and other metals-eight, consumer goods (sport shoes, white cement, dry and lead acid batteries)- three cases, and other goods-nine cases.

Country-wise, China faces 41 cases of dumping, followed by European Union 21 cases. South Korea, Japan, United States, Russia and Taiwan chipped in with a case each.

Under the WTO, India can exercise its right to slap duty on the imported item to make its landing cost equal to the domestic price of a similar item. Well, this is what is called anti-dumping duty otherwise. The sole aim is protection to the Indian industry.

This protection should not become a permanent shield, though, and thereby prevent a healthy growth and development of the ability to face competition, how so ever stiff it may be.

The June experience is revealing. It shows the fears against the lifting of QRs on a thousand odd items coming true, though slowly.

Hereafter, the government, trade and the consumers have to remain alert to further dumping. The effect of these should be gauged quantitatively also and plans should be kept in place for quick, real time reaction and redressal.

Slapping anti-dumping duty is possible upto a limit. It is not among the best answers to the malady just as re-imposition of Quantitative Restrictions is not.

There no gain saying that manufacturers in India, with their rich experience of working for 53 odd years in Free India, should improve their efficiency, increase production and productivity. They should device means to reduce cost of production and undertake proper marketing.

The prevailing attitude- anything can be sold, as there is no alternative- should end. Consumers now have a choice even though it is at a price. Like in politics, in business too, there is no TINA there is no alternative-syndrome.

Besides, experience has shown that slapping anti-dumping duty is a time consuming process (Government claims that we have the fastest anti-dumping machinery in the world!). Justification for the levy should be absolute. Some times, in the time lag between a complaint and actual levy of anti-dumping duty, the damage may be so harsh that it takes a long time to repair it.

Let it be realised that protection is encouraging inefficiency. It is a national sin. Let no more sin be commited.

The available alternative - Quit WTO.
--Syndicate Features

The growing menace of hazardous wastes

By Dr B K Fotedar

There are wastes and wastes everywhere. Every man notices that the different kinds of wastes go on piling around us with the result that our environment has become completely saturated with it. Mentioning our own domestic waste at the start, we feel that the more it is cleared daily the more it gets accumulated. Domestic refuse consists of all types of junk which is haphazardly disposed off. The domestic garbage or refuse consists of woollen socks, cotton rags, aluminimum cans, plastic bags, paper bags, banana peels, glass bottles old leather shoes, tin cans, wood chips and many things more. These are presently being thrown in the open grounds, on the banks of rivers or in some isloated areas and we just for a moment think that we this way are completely getting rid of the same. But this is not true. After all the pile of this junk is stored in the environment with disastrous effects. Most of this junk is not biodegradable. The experts have found that the risks of spread of infections are connected with them. Woollen socks take one year to become biodegradable, cotton rags five months, aluminium cans 200 to 500 years, leather shoes 40 to 50 years, tin cans 40 to 50 years and wood 10 to 15 years. It can thus be easily imagined that junk of all domestic wastes cannot be so quickly disposed off for it leaves trails of infections every where.

Ragpickers (or junk collectors) run parallel to the municipalities in collection and disposal systems, but still 75 percent of the junk remains untouched in the environment. The domestic waste problem is disturbing in almost all States of India. For some time past such huge junks of waste used to be dumped in landfills at far off places from thepopulation centres. But with the rise of population the huge piles of waste generated cannot find a room for final disposal because of the fast urbanisation presently taking place. The growing population have made their entry in the uphill areas after clearing forests. In places like Bombay, the people did not been hesitate to encroach sea costs. Similarly, various Indian lakes have been encroached upon by the growing populace making room for their residential requirements. Under this changing scenario, dumping of waste in the landfills seems not to be a viable option.

Then there is another type of waste called Industrial chemical waste, which has brought many miseries to the people during the last two decades. Industrialists do not care where ooze from factories goes and how it affects land and water both. For example, on the outskirts of Ahmedabad, near the Vatva Industrial estate, a strange sight greets the visitors. Stray dogs are tinged with purple or splashed with blue or green by rambling through many yards where toxic waste is thrown. Three people burnt their feet a few years ago at Vapi dumpy yards where toxic waste was being thrown. The accidents at so many other places of India have been taking place from time to time by dumping toxic wastes from factories in the vicinity of habitations. At Deonar (Bombay's largest Municipal dump yeard workers complain of constant respiratory problems nausea and dizziness. The effects of toxic wastes spread like cancer silently and virtually remain unnoticed. +9The sad story of the wastes also is revealed in an Industrial Estate in Andhra Pradesh, Medak district, Patancheru. Untreated industrial effluents from the estate let out in the Nakkavagu drain have poisoned ground water, affecting hundred of acres of agricultural land, the drinking water of about 15 hamlets led to an increase in the diseases including cancer. The waters of Jamuna have completely become black due to dumping of domestic wastes and also the hazardous wastes from chemical units, the effluents from which directly get poured into the river. Then there is what has happened to waters of the Ganga, which has now lost both recreational and aesthetic value. Though the Ganga Action Plan has since been started, the contamination of water by the industrial units continues to be poured into it unabatingly making the waters unsafe for human consumption. Though the dimension of chemical wastes from industries is piling up in the environment, governments at the Centre and at State levels are turning a blind eye towards all this. Nor is there any system to look after the health of those working knee deep in the toxic slush. The materials of output from chemical industries feeds great many industries like plastics, paints and dyestuffs. Many States are thus thriving onthe jugernauts of industrial expansion and hence affecting the environment badly.

So is the sad story about nuclear wastes. These are causing a havoc globally. Form the very beginning of the nuclear era, these wastes have created many type of health hazards in human society. There was leak of radioactive water from 230 MW Tarapur Atomic Power Station at the Bhabha Atomic Research Centre in the year 1995. Large amounts of radioactive matter in the nuclear fuel containers, dumped by the Russian Navy more than 30 years ago were later found near the Norwegian borders. In 1997, a train carrying nuclear waste from the southern town of Walheim to Danneberg in the north of Germany triggered violent protests in several towns enroute thereby showing a great annoyance and fear of people even to hear about nuclear waste movement in any part of the globe. Residents of desert village Sonawada just a few kms from India;s Nuclear Weapon's testing site Pokhran became worried a lot. Heavy drilling has been carried out inthe area since March, 1998, ostensibly for the granite, but in all probability to make space for a nuclear waste dump site. So in India, as well as in many other countries, the disposal of nuclear waste has a great problem in itself. Similarly, other effects which became known later in Rawalbhata (a village on the eastern bank of Rana Pratap Sagar lake near Kota in Rajasthan) can be seen on reported by the experts very dreadful. Many children suffered congenital deformities since the Rajasthan Atomic Power Station came up in 1972. The people, mostly children within 10 km radius of the plant got affected. Government nuclear scientists refuse to accept the claim of plant got affected. Government nuclear scientists refuse to accept the claims of other scientists, but as far as there were no health problems before in the region, the fact cannot be ignored that radioactive emissions an surely be the main cause of creating miseries to the people as for as their health problems are concerned. The story of Jaduguda in Bihar is in no way different from Rawatbhata. The mines in and around Jaduguda contain Uranium which is being extracted from the ore. The left over tailings are poured into the ponds and thus it was found that large chunk of population got afflicted with cancer, various skin diseases, brain damage, kidney disorders, hypertension, deformities and fertility loss.

We, in general go on adding to waste and never think of disposing it out far away from the human habitation. Actually we are the real culprits. We in way tend to address environmental problems by displacing them instead of resolving them. Displacement refers to transfering the hazardous efffects of environmental degradation across space, time or media.

When communities generate too much solid waste and export it to other communities, they are displacing their problem across the space. When environmental dangers are left for future generations, it is displacement of pollution to another -- for instance when they incinerate household wastes and turn it into toxic ash, they are displacing it across media. We therefore, go on adding to pollution in various forms and in almost every instance someone else suffers. The problem is to be understood globally and not individually. We not only need to remain clean, but we have to think of keeping the whole world clean. We have also to think long term measures to keep future generations sae. Temporary adjustments would not suffice. The Government at the Centre needs to make every effort to minimise waste by recycling as has been done by Japan and Russia. Secondly the different types of wastes should be sorted and made use of as a raw material for other industries. The biggest threat, however, remains of the disposal of nuclear waste, for which hard efforts need to be taken to get rid of this menace. It presently makes us to feel as if we stand over a big atom bomb, which may explode anytime to place the whole society in trouble. The efforts in this direction are no doubt very hard to follow but have to be addressed nonethe-less.