Pressure has started for a fresh round of negotiations on industrial tariffs even before the present schedule of tariff reduction programme is completed by the end of the year 2000.

The move is notwithstanding the fact that there is no commitment in the existing Uruguay Round agreements to "renegotiate industrial tariffs at any point of time," going by the stand taken by Saarc commerce secretaries at their first consultative meeting in Delhi a few months back.

More recently, commerce and industry minister Murasoli Maran articulating India's view maintained that the significance of industrial tariffs as a means of protection to the domestic industry has diminished over the past decade.

"As the average tariffs in developed countries declined, protectionism in the shape of non-tariff barriers has gained prominence," he stated and explained that these included sanitary and phyto-sanitary measures, technical standards, environmental considerations, anti-dumping and countervailing measures. Besides, the overwhelming view of delegates to the G-15 ministerial conference held in Bangalore in April was that the benefits of tariff reduction commitments undertaken in the Uruguay Round had not accrued to developing countries in any significant manner in view of the prevalence of tariff peaks, tariff esscalations and non-tariff barriers in developed countries. Should however the subject is raised at Seattle, India will seek a reduction in peak tariffs on industrial products on a most-favoured nation basis in order to facilitiate greater market access for it and other developing countries.

The average tariffs on industrial products prevailing in developed countries range from 3.6 per cent to 4.2 per cent, but within these there are peak tariffs, which go up even 40 per cent affecting items of export interest to India like textiles, leather products, toys and sports goods. While doing so, India cannot be oblivious to the fact that it also has high tariffs, which on an average are in the range of 20 per cent to 30 per cent on industrial products.

"You cannot address the issue of tariffs by harping on peaks alone, it must be examined holistically," opines NN Khanna, special secretary in the commerce ministry dealing with WTO matters.

"I think this is an issue which the exporting community should seriously consider," he says and points out that it has two facets. First, tariff reduction in other countries will result in greater market access for India. Secondly, "You also have tariff reductions which will lead to greater competition for the domestic industry."

The present and the former commerce minister has had a series of consultations with representatives of trade and industry in the past few months in Delhi and other places to ascertain their views on industrtial tariffs. Their overwhelming view has been if developed countries reduce peaks, India too have to fall in line.