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106th CONGRESS
2d Session
S. RES. 350
Expressing the sense of the Senate regarding the Republic of India's
closed market to United States ash exports.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 8, 2000
Mr. Thomas (for himself and Mr. Enzi) submitted the following
resolution; which was referred to the Committee on Finance
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A RESOLUTION
Expressing the sense of the Senate regarding the Republic of India's
closed market to United States ash exports.
Whereas the United States had a $5.4 billion trade deficit with India in 1999,
due in part to India's restrictive trade practices which keep otherwise
competitive foreign goods from entering the Indian market;
Whereas United States soda ash, a chemical used predominantly in making glass,
is one of the products being kept from entering the Indian market by
those restrictive trade practices;
Whereas India's barriers to United States soda ash imports include a tariff
which in 1997 was 35 percent, putting it among the highest in the world;
Whereas India's tariff barriers have steadily increased since 1997 by, inter
alia:
(1) a 4 percent special additional tariff introduced in 1998 on nearly
all imports;
(2) an additional 10 percent surcharge added to the applied existing
tariff rates in 1999 on nearly all imports; and
(3) a ``customs simplification'' in 1999 which increased by 5 percent
tariffs previously set at 0 percent, 10 percent, 20 percent and 30 percent
rates;
Whereas India's 1999/2000 budget has further increased the tariff on soda ash to
38.5 percent, making it the highest in the world and creating an
impossible trade barrier for individual United States soda ash exports
to overcome in order to remain competitive;
Whereas India has erected further barriers to United States soda ash through the
imposition of a ``temporary'' order by India's Monopolies and
Restrictive Trade Practices Commission (``MRTPC''), which precludes
United States producers from exporting to India through the American
Natural Soda Ash Corporation (``ANSAC''), an export trading joint
venture which operates in strict accordance with the provisions of the
Export Trade Promotion Act of 1917 (15 U.S. Code Sec. 61 et seq.) and
the Export Trading Company Act of 1982 (15 U.S. Code Sec. 4001 et seq.);
Whereas this MRTPC order effectively maintains a complete and total de facto
embargo on United States soda ash exports to India;
Whereas it appears that the MRTPC order was issued at the behest of Indian soda
ash producers solely to protect their local market monopoly, rather than
for legitimate reasons;
Whereas since 1995 the United States Trade Representative's (``USTR'') National
Trade Estimate Report to Congress has identified India's denial of
United States access to its soda ash market as a high priority;
Whereas, in January 1999, in response to an ANSAC petition, the USTR initiated a
``country practice'' petition to suspend India's duty-free benefits
under the Generalized System of Preferences (``GSP'') program on the
grounds that India, by virtue of the foregoing tariffs and orders, fails
to provide the United States equitable and reasonable access to its soda
ash market;
Whereas, on February 14, 2000, U.S. Trade Representative Barshefsky and
Secretary of Commerce Daley issued a joint press release concluding that
``U.S. soda ash is being shut out of the Indian market;''
Whereas, in March 2000, in apparent response to ANSAC's efforts to open India's
soda ash market, the MRTPC issued a ``show cause'' order why ANSAC
representatives should not be held in criminal contempt;
Whereas the basis for that show cause order were statements made by ANSAC
representatives during testimony before the USTR's GSP Subcommittee at a
hearing in Washington in March 1999, which statements characterized the
Indian soda ash market as closed and the actions of the MRTPC as unfair;
Whereas the actions of the MRTPC appear to be designed to ensure that India's
market remains closed to United States exports; and
Whereas the unfair closure of India's market to United States soda ash exports
runs counter to the concepts of fair and free trade and to the interests
of India's soda ash consumers: Now, therefore, be it
Resolved, That--
(1) it is the sense of the Senate that India's tariffs on
United States soda ash exports are excessive and are designed
solely to exclude unfairly United States producers from the
Indian market;
(2) the Senate strongly urges President Clinton, the USTR
and the Government of India to use the mid-September visit to
Washington of India's Prime Minister Vajpayee as an opportunity
to address and settle the soda ash dispute by allowing United
States soda ash equitable and reasonable access to the Indian
market through the ANSAC joint venture at tariff reduced rates
consistent with WTO normalization levels; and
(3) the Senate calls on the President and the USTR, in the
absence of such a settlement, promptly to begin the process of
suspending India's GSP benefits.
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