The Indian ambassador and permanent representative to the WTO is being advised to inform the disputes settlement body of the WTO, which is meeting on September 22, that India will comply with its obligations as per the ruling of the panel as it has already made such a commitment in its earlier dispute with the US.

The measures to be taken to fulfil the obligations would be carried out before April 19, 1999. As a founder-member of the WTO, India is bound to implement the decisions of the disputes settlement body.

In the event of non-implementation, the provisions for compensation or suspension of concessions by the WTO members might be invoked.

The government is expected to introduce a new bill recognising product patents to replace the Patents Act, 1970, in the wintersession of parliament.

Pharma analysts say this is one step forward in ultimately ushering in a patent protection regime. The new move of the government is a shot in the arm for multinationals operating in India. Industry experts say that most MNCs are expected to take a fresh look at the Indian market now that the government is sending out positive signals on the patent protection front.

Foreign trade act:

The cabinet has also approved amendments to the Foreign Trade (Development and Regulation) Act, 1992, to enable the central government to impose safeguard quantitative restrictions in accordance with the WTO guidelines.

According to an official spokesman, the amendments aimed at empowering the central government to impose restrictions through government notifications on the import of products which might "cause or threaten to cause serious injury to domestic producers in India of like or directly competitive products."

The amendments will include provisions to ensure that no such restrictionsbe imposed on articles originating from a developing country so long as the share of imports of that article from that country does not exceed three per cent. Where the article is originating from more than one developing country the aggregate of the imports from all such countries taken together does not exceed nine per cent of the total imports of that article into India.

The spokesman said that the amendments would also provide for the maximum time limit of four years for such import restrictions, provided that if the central government was of the opinion that the domestic industry has taken measures to adjust to such injury or threat thereof. If deemed necessary, the import restrictions might be extended to a maximum of 10 years from the date on which such restriction was first imposed.

The central government will also be empowered to make rules which might provide for the manner in which articles liable for import restrictions be identified, causes of serious injury or threat of serious injury inrelation to such articles be determined and import restrictions be imposed.

The amendments also provides for adequately defining of terms like developing country, domestic industry, serious injury and threat of serious injury.

Coffee act changes

: The cabinet also approved amendments to the Coffee Act 1942 to delete certain sections from the Act. This has been done with a view to introduction of 100 per cent Free Sale Quota (FSQ) given to growers since 1996.

This would also bring down the administrative cost incurred by government on marketing coffee. The money realised from the enhancement of ceiling of duty of customs would be utilised to enable the Coffee Board to mobilise funds required for market intervention and to strengthen the research and extension wings of the Coffee Board.

Meanwhile, the cabinet has also approved amendments to the Tobacco Board Act 1975, Spices Board Act 1986, Agricultural and Processed Food Products Export Development Authority Act 1985, Tea Act 1953, Coffee Act1942, Rubber Board Act 1947 and Marine Products Export Development Authority Act 1972 for immunity from income tax liabilities.