Asean seeks more tariff reduction on palm oil

The Asean has yet again mounted pressure on India to cut tariffs on palm oil for a successful conclusion of the proposed Free Trade Agreement (FTA) between the two sides.
`Asean has asked for further reduction in tariff. They want duties on crude palm oil (CPO) to be brought down to 40% from 45% and on refined palm oil (RPO) to 30% from 52.5%. This is an extra concession. We are evaluating this proposal. We hope to give a respond to them this week,` an official said.

Officials of the commerce ministry and the ministry of external affairs are engaged in talks with key Asean negotiators to work out an acceptable agreement before Prime Minister Manmohan Singh visits Singapore in November. He would be attending the Asean Summit during when an announcement on the FTA is expected.

With the FTA aimed at abolishing duties on bulk of the goods over a period of time, India is seeking to put crucial plantation crops in the sensitive list under which it can keep protecting its growers against cheap imports.

Initially, major exporting countries of palm oil into India, like Malaysia and Indonesia, had objected to the country's insistence of placing palm oil in the negative list and not agreeing to tariff cuts. Besides edible oil, duties on items of interest to Vietnam would also be reduced during the same period.

Earlier, under pressure from the Asean, India has reduced the negative list from 1440 to 380. India has also agreed to prune its sensitive list (goods to be subjected to gradual duty cuts) from 709 to 550.

Though 16 agricultural products will be retained in the negative list, tariffs on a total of around 150 items will be brought down to zero by 2018.

Source: Indian express