Nath: Voicing concern
New Delhi, Feb. 6: India today expressed concern over Washington’s move to adopt protectionist measures to overcome the economic slowdown.
Congress is in favour of a “Buy American” clause in the proposed $800-billion stimulus package for the benefit of American firms. If the bill is passed, US firms seeking government aid will have to buy steel products within the country.
“We must recognise that any protectionist measure is not a one-way street and protectionism is not good for the world,” Union commerce minister Kamal Nath said while reacting to the proposed clause.
According to Nath, “In today’s global competitive world, free flow of goods, services and investments are stimulants to global economy.”
The minister, however, defended the Indian government’s six-month ban on toys from China.
Nath said the ban on Chinese toys was on health grounds. The action was compliant with the rules of the World Trade Organisation.
However, Beijing has termed the ban as protectionist and is planning to take the matter to the dispute settlement body of the WTO.
The US is a significant export market for India and any restrictive measure will have an adverse impact on the economy, officials said.
According to Professor K.T. Chacko of the Indian Institute of Foreign Trade, if such protectionist measures are adopted, the fundamental principle of the World Trade Organisation will be shaken.
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