Reforms in EU’s Common Agri Policy still face roadblocks
New Delhi: France continues to block reforms in the European Union’s Common Agriculture Policy (CAP) proposed by the European Commission as part of the mid-term review of the policy. The EC failed to arrive at a consensus on the issue at the Agriculture Council meeting last week. The meeting on June 17, too, seemed to have failed to deliver any result. The issue will now be taken up at the European Council meeting from June 19-20. One of the major reforms proposed by the EC in the CAP is decoupling of farm subsidies which means support would be de-linked from production making it less trade distorting. Sources said the French were arguing that changes in the CAP should be made as part of the World Trade Organisation (WTO) negotiations and should not be undertaken independently. The EC is trying to convince France that reforming CAP would not only benefit the EU but also strengthen its stand at the WTO talks.
Back to News Review index page  

Customs inspectors at EOUs could bid good bye
New Delhi: The government is trying to minimise the cost incurred by 100 per cent export-oriented units (EOUs) in posting customs inspectors at their factories. For this, the Central Board of Excise and Customs (CBEC) is undertaking a review which will also cover the procedure involved in bringing in and taking out of products from the units. At the same time, the units will continue to remain customs-bonded during their entire operation, say commerce ministry officials. Since the launch of the EOU scheme in January 1982, the units have been incurring additional cost arising from the appointment of customs officers/inspectors at their factory premises. In this context, the CBEC’s move assumes great significance. Officials explain that the stipulation of customs bonding is intended to ensure that the facility enjoyed by the units to procure duty-free inputs — indigenous and imported — are duly accounted for by them to the satisfaction of customs inspectors. Another condition regarding maintaining a minimum level of investment by the units will also continue to apply. The objective is to ensure that there is no revenue leakage resulting from the operation of more than one unit by an exporter. Moreover, the customs department does not have sufficient manpower to plug such leakages .
Back to News Review index page  

India succeeds in stalling Pak entry into ARF
New Delhi: India has stalled Pakistan’s entry into the Asean Regional Forum (ARF). India managed to convince the ARF members that the grouping must adhere to its laid down principles, criteria and procedures. Pakistan’s case for inclusion in the ARF came up at its tenth session in the Cambodian capital of Phnom Penh on Wednesday. According to sources, Pakistan’s attempt to get into the Asean Regional Forum was supported by several countries, including Malaysia and Thailand. However, external affairs minister Yashwant Sinha, who was leading India at the meeting, wondered how the ARF could lift the moratorium on membership without discussing the matter at the ARF senior officials’ meeting, held in April this year. Sinha said it would be procedurally incorrect to bring the issue of membership of any country at the ministerial meeting.
Back to News Review index page