India challenges U.S. export curbs at WTO
9.16 a.m. ET (1416 GMT) December 11, 1998
NEW DELHI, Dec 11 — India said it had registered a protest at the World Trade Organisation (WTO) General Council in Geneva on Friday against the United States' imposition of export restrictions following India's nuclear tests last May.
The government said in a statement that the export curbs were not only unjustified but also, in its view, violative of U.S. obligations under WTO rules.
"The statement (in Geneva) highlighted that the imposition of export restrictions was violative of U.S. obligations under the WTO, particularly Article I, XI and XIII of GATT (General Agreement on Tariffs and Trade), 1994,'' it said.
"It was also pointed out that such recourse to unilateral action by developed countries would make multilateral trade disciplines and rules increasingly irrelevant,'' it added.
Washington imposed economic sanctions on arch-rivals India and Pakistan after they carried out tit-for-tat nuclear tests earlier this year.
Under the sanctions, more than 300 Indian and Pakistani government agencies and private companies were barred from buying U.S. goods that might have nuclear or other military applications.
U.S. President Bill Clinton said last week that he had temporarily waived certain sanctions, a move which will permit U.S. commercial banks as well as the U.S. Export-Import Bank, the Overseas Private Investment Corp. and the Trade Development Agency to resume lending to India and Pakistan until October 21, 1999.
A U.S. official said Clinton's action reflected progress in U.S. negotiations with the two countries aimed at restraining their nuclear programmes, restricting their nuclear and missile exports and a general reduction in South Asian tensions.
Washington is pressing the two to sign the Comprehensive Test Ban Treaty, to agree not to deploy nuclear-capable missiles and aircraft and to tighten their export controls on nuclear and missile technology.
India's protest in Geneva took issue with the curb on U.S. exports, which it said were aimed at 40 Indian entities and 200 subordinate entities.
"It is India's view that the restrictions imposed by the United States are without justification. It represents an attempt to deny technology and products to Indian companies and educational and research institutions,'' the statement said.
It added that entities targeted included an institute of mathematical sciences, an institute of physics, institutes of technology and a range of public and private sector firms, including one whose primary business is fertiliser production.
The statement said unilateral action by WTO members cut at the very root of the multilateral trading system, and the tendency by some developed nations to resort to such action made multilateral trade disciplines and rules increasingly irrelevant.
"It is important that the entire membership of the WTO takes cognizance of this unfortunate trend and devise measures to combat it before the organisation itself is threatened,'' it said.
"The time has come for the General Council and the Ministerial Conference to act with determination against all unilateral actions,'' it added.
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