LOKSABHA DEBATES TENTH SERIES (VOL. XXIX No.19) MARCH, 30, 1994 NINTH SESSION

TENTH

LOK SABHA SECRETARIAT NEW DELHI Corrigenda to Lok Sabha Debatos (English Version) ••• Wednesday, March 30 994-/Cha1tra 9, 1916 (Saka) z.1 co1/11ne !:Qr Read l+/11 SHRI VI.JAY KUMAR YADAV SHRI VIJOY KUMAR YADAV 38/120 Delote SHIU PAWAN KUMAR BANSAL 5'4-/ 21 THE AGRICULTURE THE MINISTER OF' AGRICULT\.Bi SHRI BALRAM JAK.HAR ?4/6 SI-ffiI BALRAM JAKHAAR 77 /2 SHRI SAI.F'UDDlN CHOUDHYRY SHRI SAIFUDDIN CHOUDHURY 108/7 16. 00 hrs 16.0? hrs. ( from below) CPM 109/2 CMP U 120/5' SHRI SAIFUDDIN CHOWDHARY SHRI SAIFUDDIN CHOUDH RY 14-0/2 the them them Printed at: S. Narayanan & Sons. B-88. Okhla Industrial Arca, Phase-II. New Delhi-20. CONTENTS

(Tenth Series, Vol. XXIX, Ninth Session, 1994/1915-1916 (Saka) No. 19, Wednesday, March 3D, 19941Chaitra 9, 1915 (Saka)

COLUMNS

Re: Threat to Life of Shri Satya Deo Singh, M.P. 13-15

Discussion Under Rule 193 4-13 15-106 108-172 Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations

Shri P.G. Narayan 5-13

Shri Manmohan Singh 15-37

Shri Chandra Shekhar 37-54

Shri Balram Jakhar 54-76 .

Shri Rabi Ray 80-100

Shri Pawan Kumar 8ansal 100-106

Shrimati Malini Bhattacharya 110-124

Shri Abdul Ghafoor 124

Shri Astbhuja Pras~d Shukla 125-129

Shri Umrao Singh 129-136

Shri Nitish Kumar 136-139

Shri . 140-171 (ii)

Statements by Ministers 107·108 172·181 (i} Alleged Deal with LTIE

Shri S.B. Chavan 107·108

(ii) Important changes in the Export and Import Policy, 1992 . 97 • Laid

Shri Pranab Mukherjee 172·180

(iii) Incident at a, Field Ordance Depot, Srinagar

Shri Mallikarjun 180·181

Observation by the Speaker 181-182 LOK SABHA DEBATES

LOKSABHA that an enquiry will follow and what the enquiry finds is a matter of time but at the present moment, it the House express its concern, it is Wednesday, March 30, 1994 Chaitra not proper because after aD, a Major General 9,1916 (Saka) has lost his life and this is not an ordinary occurrence. So, the Government should clarify the position. This is my request. The Lok Sabha Met at four minutes past Eleven of the Clock [ Translation]

[MA. .SPEAKER in the Chait] DR. LAXMINAflAYAN PANDEYA (Mandsaur): Mr. Speaker, Sir, moreover it has [English] also come in the newspaper that there is some kind of confrontationgqing on with the Governor SHRI JASWANT SINGH of that State ...... (lnterruptions) It should be (Chittorgarh): Mr. speaker Sir, with your clarified. permission there are two or three issues to be raised. Particularly the issue of [English] explosion that has taken place yesterday in the ordnance depot at Badamibagh in SHRI CHANDRA JEET YADAV Sri nagar is a matter of considerable (Azamgarh): Government should take concern toall of us. II is an understandable initiatives on its own in such matters. let the concern. If it is on account of an act of Defence Minister make a statement at the sabotage, terrorsim or insurgency, then it earliest. This is our request. causes one kind of worry. [ Translation] If it is an act that is taking place on account of some lack ot control or co- SHRI DAU DAYAl JOSHI (Kota): Mr. ordination or it is a question mark on the Speaker, Sir, 'Jansatta' has published a news- safety procedures of the ordnance depot, item saying that there is an apprehension in then it causes arother kind of worry. But the mind of general public that law and order either way, it merits mention in the House situation is deteriorating in Jammu and -and we would request you, Sir, to take Kashmir. Please tell us about such a decision as you would consider it...... ( Interruptions) ... necessary so that .the Government comes forward with whatever information SHRI HARADHAN ROY (Asansol): Mr: is there in their possessioa. I understand Speaker, Sir, yesterday at 6.30 P.M. 15-t6 3 Discussion· Under MARCH 30, 1994 Rule 193 4

[Sh. Haradhan Roy) Resources Minister to provide additional quantity of water to safeguard the Boro crop workers entefedintothe main Ctlapuicolliery in the Kanakul area. So, through you Sir, I under ECL through Mining Sadar Explosive urge upon the Union Minister for Water caniertoadefsloundertak.elbemining work. Resources to issue necessary instructions They sighted smoke at the level of 5-7 foot. to the Centnil Water Commission so that They fel that it oouId jead to a mishap, so additional water is provided to save the they come out of the mine and infonned the paddy crop in that area whiohis getUng Mining Manager and agent about it and floods from the DVC system every year. expressed their apprehension that it can lead to a serious mishap. On hearing this, [ Translation] .. the Manager and the agent entered the ... mine wittl38menofRescue Trade Personnel SHRIVUAYKUMARYADAV(Nalanda): group and they evacuated 22 workers Mr. Speaker, Sir, the Members of Parfiament trapped in the mine. Arrangement was made are facing difficuffiesin obtaining the cooking to check the gas which was leaking from the gas cylinders as the LPG distributors are not old deep layer zone which was 150 foot supplying the cylinders in time and could not deep. Similar1ythe stoppedvaJve is quite old even cook anything yesterday. Even then, and the workers sometimes noticed smoke no action was taken. being emitted from there. The company was informed but no action was taken. Those MR. SPEAKER: If such issues will be who saved 22 worker deserve appreciation. raised in Parliament. Then there will be no There had been a mishap in New Kenda end to it. Colliery in January in which 55 persons had been killed. Yesterday in the same colliery ( Interruptions) major accident occurred and a worker was killed. Through we have been bringing such SHRI RAMASHRAY PRASAD SINGh cases to the notice of Coal Umited, yet (Jahanabad): Mr. Speaker, Sir. I would like they do not take any action. Arrangement to thank you for giving me an opportunity to should be made to protect the live of the speak. We have read it in the newspaper workers in the mines. Yesterday we that Shri Rajesh Pilot and Shri Farooque discussed with the hon'ble Minister also but have attended a meeting of officials in J&K. it is very unfortunate that the Minister do not Many people apprised of their bring it to the notice of the State difficulties.( Interruptions) Governments. In fact, we have informed the State Government. (interruptions) MR. SPEAKER: There is no point in raising this issue. [English) 11.10 hrs SHRI (Arambagh): Sir, Kanakul area of my consJjtuency is getting DISCUSSION UNDER RULE 193 assistance from the Damodar Valley Corporation Boro paddy crop is the only Final Act Embodying the result of the crop for survival in that area. This year, they Uruguay of Multilateral trade could not get any water from the DVC Negotiation- Contd. system and due to lack of water, the Boro crop standing on 30,000 acres of land is . (English] going to be destroYed. The Chief Minister of has asked the Union Waler MR. SPEAKER: Shri P.G. Narayanan. 5 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 6 SHRI P.G. NARAYANAN came to the Uruguay Round, the framework (Gobichettipalayam): Mr. Speaker Sir, this of the proposals had been enlarged muct"t debate is taking place under the shadow of beyond the original agenda of dismantling various discussions which have already taken of tariffs and other trade barriers. How it place inside this House and outside also and went further to include the Trade Related most of all, it is taking place under the Investment Measures (TRIMS), Trade shadow of agreement which has already Related Intellectual Property Right (Trips) been negotiated and settled. Now, we are at and Trade in services. the negotiating table and it is a question of give and take. It is not a question of just As the negotiations came to a clos, the saying no to everybody. The constant attitude developedt countries made it clear that they on the other side ",as negative. There was had got a v!orse deal than the developing no constructive suggestion as to why and countries. For vast concessions in areas how we should negotiate. Fortunately for us, such as service and intellectual property, ,he Government has negotiated in spite at they felt, in return, they had not got enough all that and we have come out with a document in terms of access for their products into which may not be completely to our liking Western markets. The long term impact oi but ,at least, it is there, it is something which the Uruguay Round will take a long time to we can live with. be felt and judged. Many of its provision will only come into effect in five to ten years time Let us understand what the situation is. and it is only then that one would really be as it exists today. We as a nation, are alive able to tell what its affect on the global to the aspirations of our people. We as a economy will be. nation are alive to our responsibilities. We as a nation are alive to the opportunities of the Notwithstanding the new GATT future. discipline and dispute settlement procedures-which by themselves are heavily First, a few words about the Dunkel biased in favour of developed countries-the proposals. T'1e Dunkt Draft Text was strong countries ret~in and will no doubt use authored by Arthur Dunkel, former Director- from time to time the bilateral or unilateral General of GATT, by way of a 'compromise' option~. But not a Single improvement ::! solution since the Uruguay round was not terms sought by India could get through. making much headway. The Dunkel Draft While the United State attempts to delay the was earlier scheduled for adoption by the phasing out of the multi-fibre agreement by end of 1990. But for lack of agreement another five years, but they have not between the member countries, the deadline succeeded. There is little cheer for India was shifted three years hence. And until the textile exporters. final hours of December 15, 1993, when the Dunkel Draft was finely adopted, the United The other area where substantial gains States and the European Union were are being claimed is agriculture. The picture engaged in stiff argumelll over the terms that is bein~: painted of India's agricultural relating to European subsidies, especially in exports expanding by leaps and bound on the agricultural sector. account of the reduction in agricultural subsidies in the COtiAtries of European Union What made the Dunkel Draft such a is vastly exaggerated fnrat Ie.asttwo reasons. difficult text to digest was that by the time we First, the final reduction agreed upon in the 7 Discussion Under MARCH 30,1994 Rule 193 8

ISh. P.G. Narayanan] necessary, the Govemment can invoke provisions of compulsory licensing in the bargaining between the US andthe European public interest. is very misleading. since the Union is hardly significant. Second, the Dunkel Draft provisions on compulsory primary commodity exports have faced. for licensing are very weak. quite a long period now. declining terms of trade and the situation is unlikely to change. In India, drug prices are admittedly, at Thus even if exports were to increase in least, ten times higher than in the West. physical terms, their value increase would be quite limited. Further. with the increasing Even in Pakistan which adopted a industrialisation of agriculture, such modest system of product paten. the drug prices are gains as may be made in agricultural exports so many times higher. The Government ha? are likely to be far outweighed by the losses been indulging in misleading propaganda on in the ground yielded in trade-related this count. They c:1Onot be exported. If you intellectual property rights. obtain a patent right. then y.ou cannot export.

The argument that India can escape Here I would 'Ike to mention one this provision of minimum market access by important point. Product patent applications improving precarious balance of payment can be filed from 1995 itself. There is no situation ignores the facts that the provisions transitional arrangement. If somebody permitting even a temporary restriction of invent£ a drug in 1994 in the United State, he imports of balance of payment ground have can file for .:-atent protection in 1995 itself. now been considerably diluted. and that in Applications can be made immediately with idy by 20 oer cent at the: been loaded heavily in favour of the rich end of the sixth year. nations. Therefgre. the developing nations made a complaint in the United Nations. The Are we aware that the Government of is how the UNCATAD came into existence. Japan gives 700 per cent subsidy to rice in Japan? If 20 percent is reduced, how are we Yet the track-record of GAn has not going to export our agricultural products? improved a wee bit. Through the Uruguay How are we going to be internatIonally Round, through this Final Act the range and competitive? Why are you holding our a depth of domination by the rich nations will false hepe to C0ver up your surrender, your 11 Discussion Under MARCH 30, 1994 Rule 193 12

ISh. P.G. Narayanan) Government are involved, they must be consulted before any commitment is made defeatist mentality? with respect to such areas. A ratification rv Parliament of the emerging agreement ana In this area, that is, in agriculture, consultation with state should be necessary, substantial gains are being claimed. The contrary to past practice, as no such wide- picture that is being painted of India's ranging international agreement affecting agricultural exports expanding by leaps and national and international, affecting national bounds on account of the reduction in and sub-national policies and of concern to agricultural subsidies in the countries of the many sections of the people has been European Union is vastly exaggerated for at concluded before. After all, it will be possible least two reasons. First, the fin reduction to give affect to many of the provisions of agreed upon the bargaining between the Dunkel text thlough legislation only. US and the European Union is hardly significant. Secondly, primary commodity Therefore, my plea tothe hon. Minister exports have faced, for quite a long period is that this final Act of GATT needs to be now, declining terms of the trade, and the thrown out, look, stock and barrel. You take situation is unlikely to change. Thus, even if a deCISion that you will not sign it. We will go exports were to increase in physical terms, for bilateral agreements. Let us see what we their value increase would quite limited. could do. Why should we get into the mess Further with the increasing industrialisation at all? It is not too late to reverse the of agriculture, such modest gains as may be decision. Hon. Prime Minister made a bold made in agricultural exports are likely to be declaration that they were going to sign it. far outweighed by the losses in the ground When the negotiations are still under way, yielded in trade-related intellectual property where is the need for you to cry from the rights. house-tops that you are rloing sign it? forthe salce of the people. for the sake of the People are talking of e1 percent over all. Of course, the finance various proposals in the draft package, which Minister has been reducing the peak customs we could just not accept in their present duty. Tomorrow, if somebody else comes to from, because its acceptance may result in power, he also would not be able to increase curbing our country's economy and frustrate the customs duty becau5e we are going to the pursuit of this developmental priorities. be bound under this law for eternity. I would urge upon the Government to Many of the poliCies covered by the have a more pragmatiC and dispassionate various agreements are within the jurisdiction approach to the proposed change in the of States or are concurrent subject. No GC'leral Agreement of Trade and Trade doubt Article 253 of the Constitution allows Rules. Parliament to legislate in such areas also Iv gIve effect ;0 ar.. \!'l"~(l!.\atiQ!;',al treat'1 MR. SPEAKER: think, you must However, since many basic policies of State conclude now. 13 Thereat to life of Shri CHAITRA 9,1916 (SAKA) Satya Deo Singh, M.P. 14

SHRI P.G. NARAYANAN: Yes, SIr. I because I am aware of the incident that took conclude now. place in which Shri Satya Deo Singh was made target. I can understand the gravity of MR. SPEAKER: Thank you. the situation. He has repeatedly written to the authorities including the Home Minister. 11.29 hrs. Leave side the case of the Member of Parliament. even if an ordinary citizen seeks RE: THREAT TO LIFE OF SHRI pmtection his request should also not over- SATYA DEO SINGH M.P looked. He is our colleague. We stand by him. I am personally familiar with his district. l Translation) As Atalji has said just now, I would also, submit to the han. Home Minister to SHRI CHANDRA JEET YADAV personally look into it and get it investigated (Azamgarh): Mr. Speaker. Sir. I would liketo by the intelligence bureau so that such draw your attention to one· point. incident does not reoccur in future and he ( Interruptions) should be provided adequate security.

SHRI ATAL BIHARI VAJPAYEE [English) (Lucknow): Before any other member is invited to speak. I would like to raise an SHRI important issue in the House though it is not (Bolpur): I also request that the Home related to the subject under consideration Mir.ister may look into this matter. and we are sorry that we would obtain prior permission of the House to raise it. But the THE MINISTER OF HOME AFFAIRS Issue is serious enough and it concerns the (SHRI S.B. CHAVAi-i): I will personally look safety of the life of a sitting Member of into the matter. I will write to the State parliament. I am referring to Shri Deo Singh. Government to provide the necessal i He has already been made target once. but security to the han. Member and thereafter he escaped. Now a conspiracy is being through our agencies I will try to find out as hatched against him. He has been receiving to what at exactly is happening in that area. repeated threats to his life and threats about kidnapping of his family-members. If [ Trans/ation) something untoward happens tomorrow then, we should not be blamed for neglecting SHRI CHANDRA JEET YADAV: Mr. our duties in the House. We seek your Speaker. Sir. Shri Satya Dev Singh had special permission in this regard. The already raised this issue. So, there should situation is really grim. You are the Speaker have been r,o need to rais it again. When the of this House and the Home ~·~:nister is also Member had himself apprised of the situation, present in the House. The ;·Ie of a Member the Government should have immediately of Parliament is in dange r. The UIi"r Pradc :;: ! taken notice and after consulting the Government is not fulfilling its duty. In such concerned Membc~. he should have been a situation we supposed to remain ss silent provided security cover. spectators? I would like to draw your attention to the SHRI CHANDRA SHEKHAR (Ballia): factthat 28 Members of Parliament belonging Mr. Speaker. Sir. I am making this submission to our party have been arrested at gate No.1 15 Discussion Under MARCH 30, 1994 Rule 193 16.

ISh. Chandra Jeet YadavJ on international relations can commence- and that applies to international economic of the Parliament House we just come to relations as well- is that these are essentially know when Shri Rabi Ray and I had gone to power relations. These are not a charity lodge a protest butthey were arrested. They show. We have to recognise that we live in are in police-custody. We had gone to see a world of unequal economic and political them. But they were not there, when we power and thatthere is no simple mechanical asked the officials, present there, about formula to legislate about the equality at the their whereabouts they informed that the international plane. This has existed Members have boa,.ded the bus on their throughout the post-war period. own and have left that place. This is a serious matter. So, it is our request to you to Shri Jaswant Singh mentioned take necessary action in this regard. yesterday about this Treaty being unequal. Now, if you look at the whole history of the [English] evolution of international relations in the post-war, years, we have been Members of MR. SPEAKER: I will lookintothefacts. the IMF right from its inception. But we have accepted th9 system of weighted voting in the International Monetary Fund. 11.33 hrs That is an evidence of inequality. But DISCUSSION UNDER RULE 193 we still felt that "ve s .... ould make use of these international institutions to promote out The final act embodying the results of national interests. We are member of the the uruguay round multilateral trade United Nations. And there is a security negotiations Contd. council, which gives the rights to five permanent members. That also is an [English] expression of inequality. And yet we are members olthe United Nations because we THE MINISTER OF FINANCE (SHRI believe that we must use all these institutions MAN MOHAN SINGH): Mr. Speaker, Sir, we to promote our national interest. As have- are discussing the Results of the Uruguay nots of the worid, we must ask all the powers Round of Multilateral Trade Negotiations and that is the broad approach that we have and I think it is agreed on ali sides that these followed when coming to Uruguay Round as R<:sults do h'we anrJ will have profounc well. consequences for all nations of the world. It is, therefore, 'appropriate that this august I ci'l not arg,Jing that thp.se negotiatiorl~ House should take stock of the situation. were negotiations among peoples. Inequalities of eco:1omic and political power I have heard with rapt attention the are a fact of life. Then, how do you deal with speeches that have been made i;l this august the life of unequals? One way is that you House and I take this opportunity to place have a law of jungle. You have countries before the House some basic facts of the dealing with each other, dictationg to others international economic life. unilaterally or bilaterally. The other course is to circumscribe this power to manipulate the The Itrst thing, before any discussion power to unduly influence other countries 17 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 18

through a multilateral set of. agreements. investment was inconsistent. These are And GATI is 3.n attempt in that jirection. It commercial deals. And self-reliance can is not a perfect attempt. Even before the therefore become a reality only if India Uruguay Round, there have been several moves away from this artificial aid props, \ .. Rounds of GATT negotiations. In all these which we have become habituated in the GA TIs. we found that we were, as developing last forty or forty-fi'Je years. How can we get countries, at a great disadvantage. That out of that? I submit to this august House, disadvantage per,;ists today and that through you Sir, that India is a country, disadvantage will persist so long as India's whose import needs in the process of and other countries' economic strength does development are bound to increase. Weare not grow. a large country. We have a diversified natural resource space. But we are not well endowed Now, the agreement as it stands. on a per capita basis is with natural therefore, has to be view",d in this overall resources. setting. It is a multilateral agreement. It casts certain obligations on us. It also gives India can realis~ its full development us certain rights. And, therefore, It had to ticl potential only if it becomes a major trading viewed in this overall setting. It is a multilateral nation of the worid. o"1ly if we can fill this 9aO- agreement. It casts certain obligations on large gap between India's t;Xports and us. It also gives us ce;tain' right. And imports. Therefore, we need a world therefore, the question that we must ask is. environment in which obstacles to India's does it minimise the ~isks and does it expand exports can be minimised. I submit to you, opportunities that are nv-ailable to our Sir, and through you to this august House country? And it is my honest conviction. that this GATT agreement may not be a There are, no doubt. risks. We are accepting perfect document. We have not been able to certain obligations. But on balance, it enlarge write a new GATT charter in our own the economic space open our country, to image.That is a fact of life. We need to . realise its basic national goals of emerging promote greater self reliance to manage our as a strong self- reliant nation. own economy in a manner which will red:JCe our period of time, our dependence on Sir, I recall the l.lsI dO(;L:ment th?t artificial thing like concessional and Panditji saw before his death was the conditional aid. There are strong protectionist document of the Third Five Year Plan. " pressures in the world we live in. Whic:; think, those who know the archives, also countries want to perpetuate their know that the first Chapter of that document hegemony? The only security that weaker was written by Panditji himself. And In that, and poorer nations have is that we ought to he set out the meaning of self-reliance in the evolve a world system which is a rule-based changed setting. And self-reliance, as it was and not a deal-based system and recognising then defined, was not India would become the realities of unequal world, we must an autarchic nation or India would become evolve a system in which in a multilateral self-sufficient in everything regardless of fora you can at least put to shame some of costs. But self-reliance was defined as our these more powerful countries who want to capacity to finance our development through e;.;ploit the rest of the world for their own our own resources withou! «!tificial props. selfish purposes. I think, the GATT WI-Jen , say 'throu('/h Oil" mm msources'. it agreement has to b", viewed in that context. was recognised that the inflow of priv...t;;'; if protectionism grow, if there is growing 19 Discussion Under MARCH 30, 1994 Rule 193 20

[Sh. Manmohon Singh] technology would grow. it is only then that you can say that we can look everybody else' tariff perestroika erected against India's straight in the eye. exports, thenHhink we can say good bye to fostering economic growth. Merely by making speeches, you cannot achieve those objects. We have a long Yesterday, Shri George Fernandes journey ahead of us and it is the solemn was talking about 4 per cent of GDP being obligation of this house and of all those who needed to realised our growth objectives. influence public opinion. to realise that time We can realise our growth objectives with is not on our side. Even a small country like much smaller inflows of external assistance Vietnam today is modernising itself at a of foreign capital. But I do wish to point out breathtaking speed and if Vietnam goes the that if the world becomes more protectionist way it is now moving, time you can take it then we must face the realities that even the from me that in five years time, Vietnam three-and-a-half per cent growth rate which would have a greater importance in the this country had realised between 1950 and world trading system than India has. This is 1980 cannot be accepted, that it will be the challenge, this is the opportunity and this there. If the world becomes more is the setting in which this August House protectionist, millions of Indians will lose should appraise the results of this Uruguay jobs. These will be cotton growers, handloom Round. producers, mill workers d those all who are directly or indirectly associated with India's Coming to the specific issue whether export trade. we have been able to project our essential interest or not, I submit it to you that India Yesterday, a question was asked why needs a world trading environment in which is it that China being outside GAn can have protectionist forces would be held at a bay its own trade expanding and why is it that we and this GATT Agreement, imperfect though cannot go the Chinese way. Now, those who it is, ~oes assist in that process. If this GATT are familiar with the history of China would Agreement did not exist, we would have know that the Chinese touay are Ie to talk to bilateral to face . the might of powerful the world from a position of strength because countries and you can well envisage what they used the last fifteen years to build their would be the outcome of the those economic structure. In 1978, the Chin~s negotiations. Even China, with all the strength exports were roughly 9.6 billion dollars and that it has at its command, felt obliged to India's exports were 6.6. billion dollars. agree to the Pater'lt Laws that the United China's exports are now 85 billion dollars States wanted to enforce. Those terms are whereas our exports are 21-22 billion dollars. far more stringent than the terms that you China has used this period to build its own find in the GATT Agreement. So, we need economic strength. China has taken far this multilateral agreement to enlarge the more seriously, whether we like it or not, economic space and to ensure that India's than us and if you want to go the Chinese exports have a hospitable environment in route, then let this august House evolve a which they can grow. meaningful national consensus to build our own economic strength. to make India a Issues have been raised with regard to front ranking nation where our export would what is going to happen to our agriculture, grow. our trade would grow. the science anJ what is going to happen science and 21 DiscusSion Under L'HAITRA 9, 1916 (SAKA) Rule 193 22

technology, with, regard to our ability to Femandes quoted that Malaysia be a nei have a path of development which is beneficiary; Indonesia will be a net . autonomous, and whether this Agreement beneficiary; Thailand will be a net beneficiary is infringing, in way, the rights, ofthe States. because they are large agricultural exporters. I shall briefly touch upon all tIlese issues. Well, we should not grudge that. After all Whenjtcomes to agriculture, thepointthat they are our neighbouring countries. If they I do wish to emphasise is that our farmers became more prosperous, there will be need a pattem of development Which could more opportunities of trade among countries give them growing opportunities. And what of the Third World. Collective self- reliance does that involve? In our country, there has has been a dream of the countries of the been in the past, inadequate recognition of Third World. But it can become a reality only the fact at agricultural terms of trade have if the purchasing power of the countries of not been as favourable as they ought to be. the Third World increased. Therefore, even Ourfriendsonthe Left have always believed though India may not be a large agricultural that agriculture has to be finance on the exporter, the fact that many other developing broken backs of the peasantry. We do not countries which have a vital interest in trade believe, and the Chinese also recognised is primary commodities will benefit by that later on. that that sort of a system does not agreement is something we as a member of work. Therefore, farmers need economic the Third World ought to welcome that. As space. They need remunerative prices. they far as India is concerned, it is true. need more market opportunities for exports and removal of intemal restnCtions on trade Yesterday, Shri George Fernandes in agricultural commodities. Throughout pointed out that we derive marginal benefit. the post-war years, there were two major This in the past we have discriminating demand of the countries of the Third World, against our exports. If we have pursued with all backgrounds, that agriculture and patterns of development, which have textile should be brought within the discipline consistently discriminated against of GATT. We are not larger exporters of agricultural exports in general, it should not agricultural commodities, therefore, we have come as a surprise to anyone that we will, in a marginal interest in this area. But today the short run, derive minimal benefit from there are a large number of developing this agreement. But now that we are countries in Africa and Latin America which reversing ourpolicy, now that we are making are suffering acutely because in the last exporting as a far more profitable, if you take fifteen years, primary product price a 1O-year perspective, India could derive as commodities have colloapsed, because much benefit as a result of liberalisation of there, is no discilpline in world trade, in world trade that is being now realised by primary commodity . As an act of solidarity other countries including China. with countries of the Third World, we have always maintained that even though we may There is nothing in this agreement that not be large agricultural exporters, we will the essential interests of Indian agriculture. side with our brethren in the countries of the In fact, as I.see it today a '-new wave of Third World when it cornes to improving the agricultural diversification is underway. You terms of trade' foragriculture for enlarging go to Karnataka- you will find floriculture the economic space for those countries. there. You go .0 Maharashtra or Andhra Pradesh- you will find horticulture therf). Yesterday think Shri George They will become a lot more profitable by all 23 Discussion Under MARCH 30, 1994 Rule 193 24

[Sh. Manmohon Singh] is consistent with what India considers to be the requirements of food security. these activities. They will find expanding market as a result of the progressive Our public distribution system is dismantling of restrictions on agriculture prf'lected. There is nothing in this GATT and trade. Our worry is not that agricultural which says that you will not have a public restrictions are being dismantled but that distribution system. There is nothing in this ttley are being dismantled not fast enough. GATT agreement which says that you will But there be no doubt about that that if not subsidise investment in agriculture. provisions of the GATT would at the margin enlarge the scope for agree- cultural exports There is nothing in the GATT which for India, what about our domestic producers. says that you will not have subsidies for Questions have been about raised about small and marginal farmers which are an about subsidies that we provide. integral part of the process of development. So, I would like to dispel all this campaign of I will be brutally frank with this House. disinformation that is going on in this country There is nothing in this GATT agreement that this GATT agreement means that this which limits our ability to provide subsidies Govemment has sold the interest of farmers. to agriculture. The real limit is that in a I think, high and dry, it is far from the truth. country where farmers are as large as 70 Our farmers will benefit by increased per Cellt of the population. there is a strict opportunities to trade. narrow fiscal limit. You cannot subsidise of the population, there is a 70 per cent We have a consistent policy for population. The limit to subsidise agriculture agriculture. Today, if you look althe terms 0f is set by the fiscal conditions in India not by trade for agriculture, taking 1971-72 as the the GATT agreement. If you look at the base, the terins of trade for agriculture are aggegak exports that our agriculture has, it roughly 10% lower than what they were. In is a negative figure of roughly 17.5 per cent the last two years, thanks to the effort of my of the agricultural GDP. If we want to in colleague, the Minister of Agriculture and crease the agricultural subsidies, let me the Prime Minister, we have been gradually say, GATT will not prove an obstacle. I think improving agriculture terms of trade. One the real constraint on enlarging agricultural per cent improvement in agricultural terms subsidy is the state of India's fiscal system. of trade means, a transfer of resources to Therefore, for god's sake, let us not mislead the farmers of RS.8500 crores. If over a our public opinion that this agreement is period of four or five years, we bring about something which will take away our right to 10 per cent improvement in agriculture subsidies agricultL;re. I honestly submit to terms of trade, RS.85,000 crores of income you at it is far frem being true. will be transfer redy to India's farmers. Imagine what it will be to India's industry. . A question has been raised- will we be Rs. 85000 crores of additional demand from able to have procurement operations; will the farmers of India for industrial produc's the Government be able to spend public would usher in a new industrial revolution in revenues il) buffer stocking. To the extent our country. The policies and programmes that I undEfrstand the GATT agreement, that we have been following are not a there is nothing in the Gatt agreement which programme of hurting agriculture. It is to prevents India from pursuing a polocy which free our agriculture from the Stalinist mind- 25 Discussion Under CHAITRA 9, 1916 (SAKA) Rule ~93 26

set of the CPI(M). We have never believed people like him. (Interruptions) that the development of India's industrialisation must be on the broken back of agriculture. We will remove restrictions on 12.00 hrs. farmers. We will encourage right to sell their produce where they like. We will gradually SHRI bring ~gricultural prices In line with the (Barrackpore): He is talking about fertiliser international prices. We will reduce industry. protection to industry so that our farmers will get fertilizers, will get machiery at the SHRI (Bankura): lowest possible price. Fertiliser industry is closed down.

SHRI SOMNATH CHATTERJEE MR. SPEAKER: This interlude is (Bolpur): You are shouting here but you are enough. Now please carry on. silent in Washington. You have no courage to raise your voice there. SHRI MAN MOHAN SINGH: Sir, I do not want to hurt the feelings of my friend. If It is all in future. For three and a half I hurt his feelings, I apologise to him. But years, his Party is in the Government. Now that was not my intention. I was mainly he talks of his Party and his Government. narrating how this gap between rural income What about the three and a half year period? and urban income can be abridged. What has happened during that period? He (interruptions). I was saying that we have to is talking of doing this and going the at. You operate on a multifaceted strategy. We have only close down factories. to reduce the protection of industry gradually without hurting our industry so that our SHRI T ARIT BARAN TOPDAR (Barrac.k farmers can get all these things at the lowest pore): Why do you allow dumping DAP? possible prices. They get quality goods, ( Interruptions) cheap good and simultaneously we must give them more opportunities. We must SHRI SOMNATH CHATTERJEE: remove obstacles to expansion and export Come to absolute specific. How are we of agricultural commodities. I do recognise- benefiting, yC'u explain. Let him tell the Mr.Somnath Chatterjee was right-there nation instead of giving... (Expunged as are millions of poor farmers. Now, market ordered ~y the Chair) lecture. The incentives have no meaning for them. ! Government has taken everything from the agree with him that we need liind reforms to people. You have not got the decency to tell deal with problems. We need programmes .the reality. You do not take the country into of employment promotion and, that is why, confidence. You only give us lecture. Why in this Budget for this year and in the last do you not say that these are the benefits we year, large sums of money have been will get from this? In real terms, what will be provided for those very farmers. We the benefits? You are shedding crocodile recognise that while farmers do require tears for the farmers of India. remunerative prices, there are poor people in rural India and poor people in urban Jndia We are the people wou have carried out .who require a system of public distribution. land reforms. My Party has done that. We That is why we are strengthening the system are surviving and we are growing in spite ot of public distribution 27 Discussion Under. MARCH 30, 1994 Rule 193 28 [ Translation] come.

SHRI RAJVEER SINGH (Aonla): Mr. SHRI MAN MOHAN SINGH: I started Speaker, Sir, I want information from the by saying that the ambition of those countries hon'ble Finance Minister. .. (lnterruptions). for growth. for self-reliance and for social justice cannot be realised through a big [English] increase in India's exports and India's exports and India's export cannot increase in a MR. SPEAKER: This is not going on world where there is growing protectionism record. (lnterruptions) .... and where there is bilateralism.

We ar~ discussing:l very serious topic. I started saying that this agreement, (Interruptions). Take your seat. If you have even through it is imperfect, it does constitute really any point to make on this final Act, you an important step forward It creates and it will see that time will be made available to enlarges the economic base for India's you, but not to interrupt like this. If you have exports and makes them grow. really a point, let the finance Minister complete his speech, take the opportunity I sta:rted by saying that. So, I do not and make the point, but you should not plead guilty to the charge that I have not interrupt like this and, of all the Members, touched on this point. Shri 8asudeb Acharia. Questions have been raised. It was SHRI SOMNATH CHATTERJEE: May asked will India become a flood-gate for I speak? I appreciate what he said in the fOleign goods to be imported into this beginning that this is an unaqual w6rld. We country? Shri jaswant Singh saw some are not powerful nation We have to accept discrepancy between what I have been things against ollr WIshes for the sake of saying and what my colleague the hon. multilateralism. I can understand. Whether Commerce Ministe' has been saying. There he agrees or not, we can understand. is no contradiction. The hon. Commerce Therefore, what we are expecting and the Minister has riightly pointed out that these country is expecting, I believe, is to know obligations to provide minimal access to what are the benefits in concrete terms. apply do not countries which have a balance Please tell us this instead of these usual of payments problems. The balance of speeches that we heard have plenty of payments problems, In the past also, have times. We are only requesting him. I was been determined multila:teral. Even now, the waiting with patience. Suddenly'he starts GATT consults the International Monetary provoking. My party is not surviving with his Fund to find out whether a country has good wishes. If he provokes me, he will get balance of payments problems or not. There it. is no change in that provision. We have lived with that provision for the last 45 years; we MR. SPEAKER: He will not provoke can live with that. I am confident that when you. We have said that the multilateral we have the balance of payment problem, agreement is better than bilateral. our negotiators have sufficient wisdom tv convince the rest of the world to take a SHRI SOMNATH CHATTERJEE: Let reasonable view of India's requirements. us know what benefit out of this GATT will But we are not for a perpetuation of the 29 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 30 balance of payments disequilibrium. We are of the third world. I would not like to go acting actively to move towards a system further into this whole area. when the balance of payments problems will be a thing of the past. Sir, what is the true state of affairs? Important, impartial experts who have S~ri Jaswant Singh asked: what will pronounced onthe implications of the GAn happen to imports? Then also are there is for India have already come to the conclusion adequate safeguard because we are bound that all the campaign of disintormation that in GAn agricultural import tariffs at 100 per some parties are propagating has no basis, cent for basic primary commodities; 150 per in fact. Dr. Swami nathan is one of our cent for processed agricultural commodities greatest scientists. He has conclusively and 300 per centfor vegetable-oil. If you are shown that India on a balanced change. For going to have an India where things will be example, only the other day I saw Dr. Kurien's so mismanaged that we cannot survive statement that this agreement, if it is even with the 100 to 300 per cent import implemented, will open up vast opportunities tariffs, then, let us say good-bye to any for the dairy industry in India because while ambition of solving the problem of poverty or the dairy industry in Europeand the rest of of unemployment. I have full faith in India's the world is highly subsidised, it is not farmers; I have full faith in India's scientists subsidised in our country. and te-chonologists that given these opportunities, our people will show to the So a freer system of world trade in dairy levels can go up fast enough that India call products would to the advantage of countries become a competitive agriculture producer like Ind_ia. We have nothing to be afraid of and we already are in many commodities. that. Therefore, there should be no fear that India is going to be flooded by imports of agriculture Now I come to the second broad type commodities. If you ask me personally, if we of argument about the TRIPS, about the do get some imports from friendly countries, intellectual property rights, the trade related I think that would bind the countries of the aspects. Here, I would :ike to lake the House third world together. I would like India and into confidence as to what is our approach the developing other countries to work towards technological self-reliance. We do towards a system where there is growing recognise that today's world is driven by the inter-dependence,. People talk about thrid forces of technology, that science and world solidarity in abstract terms. But if the technology have emerged today as the third world countries do not have import major determinants of the power and wealth capacity, it they erect import barriers against of the nation. How is this country going to one another, how can this solidarity become acqu~e that scientific and technological a reality .So, therefore, let us, I think', go strength? Whet~er you like it or not, todav ahead towards a system in which there will technology is not with th Govemments. In. be increased flow of trade. Since many the old days when the Soviet Union was developingcountries are producers ot there, we could {1et some technology primary commodities, if at a margin, some howsoever interior that technology may be. primary commodities come in also, I do not Thetechnology today is withlhe multinational think that will be a disaster. It will be a further corporations. If You really want to leave the contribution to India to promoting the trog, if you do not want to become frogs in Collective self-reliance among the countries the well, youmust go to a place where the 31 Discussion Under MARCH 30, 1994 Rule 193 32 rSh. Manmohon Singh] What the Agreement does is, it does not restrict farmers' choices. It enlarges. the top class technology is. India, therefore, has Indian farmers option. It the Indian farme,~ leamt to do business with the multinational are. content with using the seeds that are corporations. And I would like to say that if invented by our own researchers, it !S well you want to condemn India as having the and good. But suppose, somebody has a second-class or third-class technology, better quality of seeds, supposing its use you can stay with your patentrights. But you increases the productivity of the Indian are not going to getthe first class technology farmers in a big way and we have to pay a whether it 'is in pharmaceuticals or whether small price as royalty, would you condemn it is in any other products unless you are Indian farmers to a low level of productivity. willing to pay the price. And let me say that It is not a compufSion on our farmers to use it is no shame to pay the price. And those a particular type of seed whether produced people who are spreading the terror that all by multinationals or not. Our farmers will these will lead to increase in price, there are have greater degree ... (/nterruptions) several influences which determined the prices. and payment for royalty is only a small SHRI (Hoogly): part of the total prices that we have to pay. would ·Iike to know whether there is any If to make India a front-ranking nation, to scope for raising the prices. Please clarify make Indian products competitive and top- this. class, if we have to pay additional price by way of royalty, I think, it is a small price to pay SHRI MANMOHAN SINGH: We are . Let us not have that mental;ity of a frog in obliged to get or to force our farmers to buy the well I think, we must recognise that we any seeds. Our farmers are wise enough; have to leave frog and the only way to leave they will decide which seed is more profitable. the frog is not r~invent the zeal but to go And in the meanwhile, we are proud of the where the top class technology is available ach:evements of our agricultural scientists . And that I think, is the reason why our and agricultural technologi~ts. We always Govemment despite some initialhesitation look upon India as an importer of technology. felt thflt our national in:erest is best served But the vision tnat we should have is that ten in our being a part of this GATT Agreement years from now, if you release the creative rather than standing out. energies of India's scientists and technologists, India could become a major We cannot become another Burma. exporter of these technologies. We have ambitions of being a front-ranking ( Interruptions) nation in the wor1d so that we can compete with anybody in the wor1d provided we give our people a chance, provided we release SHRI RUPCHAND PAL: What is the bottled up creativity of our people. And happening in the case of missile technology? it is for this reason why we teel that on balance the GATT Agreement will work to SHRI MANMOHAN SINGH: They have our ~a~tage. a mentality that India is condemned to remain a third class nation and I have a belief and Now the questions have been raised I have a vision that India has all the pre- Nith regard to pharmaceuticals and seeds requisites of being a top class nation. That ,-et me say that we do not patent seeds. is the difference between you and me. 33t; Discussion Untler CHAITRA 9,1916 (SAKA) RuIs,193 34

Sir, some questions have been raised suggest in.my intefvention l ... asking for aboutStates' rights, I am very sorry that Shri dismantling of the ~ States; not at all. In Jaswant Singh .... ( Interruptions) fad, I am asking for strengthening of the federal strucItJfe sothat the national market [ Translationl is strengthened.

SJrlBJ: lUAU DAYAL JOSHI (Kota): SHRI MANMOHAN SINGH: That will Please tell us something about medicines, be done. The pAces of medicif1es will iIlcrease four thousand times. Please make it clear as 10 SHRI JASWANT SINGH: And all that I where do we stand. said was that due process of consultation had nottaken place with the State; that is aiL IEngdisIIJ SHRI MAN MOHAN SINGH: I will Mr. Speaker: Mr. Finance Minister. may respectfully submit to Shri Jaswant Singh request you not to respond to these that I may be wrong; but it is my honest interruptions. conviction that if you take right of the Union to enter into treaty obligation and in the SHRI NIRMAL KANTI CHATIEAJEE name of the States' rights. you challenge the (Dumdum): And also do notlisten to anything right of the union to ednter into treaties. you coming from the people. would he unleashing massive divisive force which wouid work to the disintegration of SHRI MAN MOHAN SINGH: With regard this country. (Interruptions) to the Stales' righls. I was very sorry that my esteemed friend Shn Jaswant Singh. for SHRI SOMNATH CHATTERJEE whom I have great respect. brought up this (BoIpur): How can it be? Youhave not even totally extraneous issue of the States' right. consulted the states. We take pride on being a one national common market. Now. in the namey of the SHRI TARIT BARAN TOPDAR states' right if you are going to fragment this (Barrackpore): You do not believe in the common national market, you will do an federal structure of the State. You areatways irreparable damage to the future growth of . criticising it. the India society and the Indian economy. We have to loak upon India as an organic MR. SPEAKER: It is a very delicate community. But you are introducing today ... issue. Please handle it delicately. If you ( Interruptions) induct the concept that we can disunite. you should think two times and more than two

SHRI JASWANT SINGH (Chittorgartlj . times. Agricutture is in the Concurrent list; Sir. with due regard to his right to rebut Foreign Trade is the Union list. You should everything that I have said, in respect of the know that. rights ofthe States. it is my expectation that the hon. the Finance Minister when SHRI MANMOHAN SINGH: I am sorry, interv.,ing would not put into my mouth Sir, Shri Femandes is not here. Yesterday, word" that I did not Uttar or meaning that I he quoted certain documents as to what the did not have. I certainly stand by the rights American President says and what he does. of the States; and not for a moment did I Well, the American President is responsible 35 Discussion Under MARCH 30, 1994 Rule 193 36

fSh. Manmohon Singh1 MR. SPEAKER: I have removed iffrom the record. to the American public opinion and I do not blame him forthat. But Iwould like to say that SHRI CHANDRA JEET YADAV: Yes today our exports to the United States are Sir, thank you very much. growing very fast. SHRI MANMOHAN SINGH: I believe We have the largest trade surplus with I have covered most of the POints that have the United States. Therefore to argue that _been raised in the course of this debate. Shri we are surrendering our market, we are Femandes is not here. He reminds me again opening our market to US is totally false. and again 'af .the report of the . South Shri Fernandes was quoting some Comission I was proud to be·associated agreement with regard to financial services. with the South commission. If Shri Fernandes As usual hg;S ... .* and other friends read that rport carefully, they woulq recognise that the options, the MR. SPEAKER: I am sure that it is perils, the opportunities that the countries partiamentary.. This may or may not be of the third world faced on the eve of 1990s partiamentary. are well spelled out in that report. I do not renege, I do not disown any of the things that SHRI MANAAOHAN SINGH: I would like are written or mentioned in that report. That to assure this House that we have made report clearly recognises more than once very limited offers in the .. area of fmancial that international economic relations are n(); services. They are also subject to further a charity play; that we cannot get justice negotiations. There is therefore no from the workt simply because of breast commitment of any individual sector beating that we are poor countries. The mentioned by Shri Fernandes; that is tragedy is, whetner we like it or not, the banking, financial services, insurance. The world's attitude, the rich countries' attitude only agreement so far is that negotiations in to the poor countries is the same as that of this area will continue for six months after the Victorian England to the poor: 'the poor the acceptance oftne Uruguay round. During _ have been with us, they will be with us, so this period countries are free to withdraw what?'. Instead of breast beating, the their offers tabled thus far. All * that Shri challenge before this nation is to realise its Fernandes was trying to * that we have own developmental potential of which there opened up ourJinancial services to the to the is vast scope. If we do that, I can assure you wood at large is totally inconsistent with the there is no country in the world which will be reality. able to ignore us. We do not have to seekthl'! leadership of the third world or anybody MR. SPEAKER: That will go out of else. If India's economy becomes a vibrant recoro. economy, if we grow at the rate of 7 to 8 per cent per annum-and if you grow at 7 to 8 per SHRI ANNA JOSHI (Pune): Ask him to cent, you double your national income in ten withdraw it. years' time-you would then have an economy which everybody would like to chase, whose SHRI CHANDRA JEET YADAV views you would like to have, whose views (Azamgarh); This is a derogatory remark. every country in the world wou_ Id like to E?V I~--~------~------. ·Expunged as ordered ~y the chair. 37 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 38.

serious attention to. Let us work towards is that it appears as if a spokesman of . that goal rather than frittering our nations multinational companies is speaking. energy in this type of partisan debate, (Interruptions) demoralising our people that somebody is out to rob them. That is totally inconsistent Mr. Speaker, Sir, if I have spoken any with the reality and and the facts. unparliamentary word I withdraw it and apologise for it. If it change the situation. I [ Translation] am ready to apologise for it. (Interruptions)

SHRI CHANDRA SHEKHAR (Ballia): [English] Mr. Speaker, Sir, just now when I was listening to the speech delivered by the hon. MR. SPEAKER: He has withdrawn Minister of Finance, I was reminded of a it.( Interruption) poem of my student lite which Shri Vajpayee would also have heard many a time during the natiional Movement-N.C. [ Translation] Jisko na nij ka gaurav tatha nji desh ka abhiman hai, SHRI CHANDRA SHEKHAR: If I speak wha nar nahin, pashu nira hai our any unparliamentary word through-out my mritak samaan hai. speech by mistake or due to some other reason I express my regrets in advance and Therefore, my submission is that the I'll withdraw it. However, the facts cannot be future of the country can be bright ened on overlooked. the basis of self respect, man-power and morale of the people of this country. It is only The han. Minister of Finance spoke on when crores of people make proper utilisation various subjects in his speech and cited of the natural resources with determination several examples, with pride including a that the futufe of the country will be bright. reference to Vietnam. Perhaps the han. minister of Finance knows the complete The way the case of mu!tinational history of Vietnam as to how the supreme companies was advocated in the House' power of the world of which we are so afraid created doubt in my mind whether the of, continued its attacks on Vietnam for speaker was the hon. Minister of Finance or twelve years but the people of that country some multinational companies ..... 101 was were not demoralised. This is a historical totally confused. (Interruptions) fact. Instead of disintegration, the two divided parts of Vietnam merged into one country [English] only because the people of that country were not demoralised. The entire power of SHRI PAWAN KUMAR BANSAL the multinational companies, the armed (Chandigarh): Sir. this is not in good taste. forces of America could not suppress the This is personal allegation against the minister. This should not be allowed to go on pe('ple of Vietnam .. record. So, this should be expunged. Today I am reminded of the I Translation] observations made by Pandit Jawaharlal Nehru atthe tim~cf Third Five Year Plan, in SHRI CHANDRA SHEKHAR: I am sorry comparison to the present circumstances and withdraw my statement. My submission when, regarding agriculture it is being 39 Discussion Under MARCH 30, 1994 Rule !f13 40

ISh. Chandra Shektlar] said in the country. I had stated last time as to why the hon. Minister of Finance is claimed that adequate facilities are being criticised in the House why leunting remark, provided to the farmers and the Members of are passed on him. Our colleagues are all Opposition are creating wrong impressions praise for him. But the hon. Minister of in the minds of people and are also Finance is not speaking something very demoralising them. It has also been stated glorious. About60,700r80 Finance ministers that India is changing fast, gardens are all over the world are speaking the same being developed near Bangalore from where language, and all Ihese are those hon. flowers would be exported. it would add to Finance Ministers ..... * the exporting capacity of the country, and eamforeignexchange. But, hon. Minister of [English] Finance is a well qualified person and is aware of the fact that it is a country where 76 MR. SPEAKER: I will carefully gothrough per cent of the total cultivators have less the record. What cannot form part of the than one hectare cultivating land, and hardly record, will not go into the record. manage to make their both ends meet. Would you like the agricultural system of [ Translation] such a country to become export oriented? You have also state that the Government SHRI PAWAN KUMAR BANSAL: Mr. wants to help the third world countries. In Sp3aker, Sir, i5 it all being said to advocate whose eyes do you want to throw dust by sovereigty? .. (lnterruptions) .... deviating from the facts? Is it not true that these people taught the same lesson to the [English] African countries what the hon. Minister of Financfil is teaching us? At that time those SHRI PAWAN KUMAR BANSAL: It it; people were pursuaded to abandon the not in good taste. traditional agriculture and follow. modern techniques to increase the production so as SHRI CHANDRA SHEKHAR: What is in to export it. They were encouraged to grow bad taste? If it is in bad taste, I will sit down. cocoa and coffee for export . For ten to twetvevears, they were provided adequate MR. SPEAKER: I will apply my mind. I . financial aid and encopuragement from the will into it Please sit down . multinational companies with the result that finally the traditional methods of cultivation [ Translation] was done away with .Big farms were raised and factories were set up. But the SHRI DAU DAYAL JOSHI: Pawan multinationals had a complete hold on the Kumar Bansal ji, you need not understand market. That is why they finished the marKet the points discussed by Shri Chandra itself. As a result of it starvation prevails Shekhar. You will noi be able to understand there today. You are also teaching the same them. You do not have the height to lesson to us because you have been taught understand the meaning of his observations. so. You are not so high to interrupt Shri Chandra Shekhar. You cannot argue with him. You It is not something new that is being are nothing before hiIT'. (Interruptions)

*E"lCpunged as ordered by the Chair. 41 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 42

SHRI CHANDRA SHEKHAR: Mr. World Bank existed even at that time and Speaker, Sir, I am following the tradition set that we being a poor country, accepted by the hon. Minister of Finance. He has everything in view of prevalent inequality. I stated a few minutes ago that in this House would not like to go into details. But whether that the Government is not ashamed and it is not true that despite everything, Pandit that our export would increase with their Jawaharlal Nehru had pointed out that a assistance. He also stated that those sub-continent like India will not depend on' companies would also help in improving our other countries to meet its basic necessities. economy. When he state that they will be the Is it not true that despite opposition, Pandit source of strength to the farmers, nobody Jawaharlal Nehru had stressed that we will objected. But when I SdY that the hon. have to set up steel companies and work for Minister has stated so, . it becomes power generation. We do know that we objectionable. I am unable to understand being a poor country have inadequate' why members of Congress party get agitated resources, but the countrymen will have to if I repeat the statement of the han. Minister make sacsiifices in order to secure the of Finance. future and safeguard the independence of the country. At that time he had stated that [English] they were building the temples. These temples are the future of the country and SHRI PAWAN KUMAR BANSAL: That people will offer prayers there. These again is a distortion. When Shri Jaswant temples will tell thp. tale of our developmer ,; Singh rose to make a point, the han. Finance Mr. Speaker, Sir, have these temples not Minister referred to it. What is being done started breaking down, are the bricks of now? (Interruptions) those temples not falling? I do not know what agreements have been reached under [ Translation] GAn. But I am well aware of the intentions of the Government, it is due to their malafide SHRI CHANDRA SHEKHAR: Mr. intentions that our institutions- one after Speaker, Sir, all the han. Members are great the other are disintegrating crumbling and parliamentarians. If an han. member rises, terumhiling into ruins. I would sit down because I am ready to surrender before anybody. But I am not Mr. Speaker, Sir, we had always ready to surrender before anybody. But I am sought and even today we do seek co- not ready to surrender with regard to my operation. However, there is a difference in personal paint of view. co-operation assistance and support. We cannot surrender. We would seek co- Therefore, I would like to submit to you operation and assistance, but we would not that sometimes we musttry to restrain surrender. When we say that it is a document ourselves q little to maintain the dignity ofthe which would force us to surrender, we do n House and the country. A number of ot say so just to criticise the act of the arguments were given just now. it was stated Government , or to create any wrong that this is being followed from the very impression. What is the nature of the beginning. The members of Congress Party document. did not object even a little. It was stated that a single tradition is being followed from the Mr. Spea:'.er, Sir, yesterday you were days of Jawaharlal Nehru, that IMF and not present in the House. Discussion was 43 Discussion Under MARCH 30,1994 Rule 193 44

held during which the hon. Members pOinted [Translation] out that comple!e document has not been made available and asked whether the SHRI CHANDRA SHEKHAR: Mr. document of 1947 were available or not? Speaker, Sir, my only submission was that The hon. Minister of Finance stated that he this is an indication how seriously we are would enquire about it. The matter is being taking and thinking about these things. This discussed in the Parliament of the country, is just the first objection that we do not have the Government is initiating the discussion, the doucment. We also do not know what will the future of the country is in its hands, but be the consequences. it does not have the original document on the basis of which the agreement is made. Yesterday, you said a thing that baffled even me. You said that since the agreement is before the hon. Members they [English] should discuss the difference clauses of it and not deliver a common speech. I tried to THE MINISTER OF COMMERCE go through the agreement several times. I (SHRI PRANAB MUKHERJEE): Sir, yester- am not so good in English language, nor I am day this question was raised. I told him a well educated person. I tried to read it 2- because an off-the-cuff comment was made 3 times and I am not ashamed of making that I will find out where is the document. So, this submission that I was unable to I had instructed that the document should be understand where the agreement was taking placed in as it is an old document of almost us to. A number of aspects have been 47 years. I had asked them to the Library get mentioned in it including the document of it reprinted so that adequate number of 1947 and also the cases lodged. Shri copies are being made available. Somnath Chatterjee may discuss the various aspects of the constitution of India in the SHRI NIRMAL KANTI CHATTERJEE: Supreme Court of India. I could understand This is an incorrect information. The the Constitution only in one reading but I am document is not that old. That dicument unable to understand the GATT agreement 1947 had been through various rounds and even after reading it thrice. Our learned had been modified and brought upto date in friends have understood the contents very 1986. when was the Uruguay Round started? easily .. (Interruptions) It is that document which has to be kept in the Library. It is not that old. [English]

It is the document which has to be kept SHRI PRANAB MUKERJEE: Without in the Library it is not that old. reading the contents of it, how can you say that we have surrendered our sovereignty? MR. SPEAKER: I am sure that you are going to get an opportunity to speak. You [Translation) need not inte~ect now. SHRI CHANDRA SHEKHAR: Do not SHRI NIRMAL KANTI CHATTERJEE: worry, I am coming to that point. That is considered to be part of this Agreement This particular agreement is a topic of 45 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 46 discussion even today in most ofthe countries people? We have a stable Government of the world. Japan is not agreeing to it. The here. I would not like to go into the details. Japanese Prime Ministertells his countrymen The Uruguay Round of talks were held. The that he is sorry that his Government failed to President of America set up not one, but 4- check the import of rice. The Japanese 5 committees. The people from Multi- Prime Minister feels sorry whereas the hon. national CClmpanics were appointed the Minister of Commerce and the hon. Minister Charirman of those Committees. What is to opt financey of this country are busy is seli- done in the field of agriculture, what is to be praise and say that we arE' a strong done in the Patent law and what is to be done country. ,( Interruptions), .None is ashamed- in the field of medicines? In a committee, 'the I am just revealing this fact, Managing Dlrectcr of Cargil was appointed the Chairman and in other committees, the This document is leing hotly discussed people from the City Bank or some other in America and France, I doubt whether people presided over. The talks were held people of these two countries would agree for years. Our hon. Commerce Ministerand for signing the document, when our Minister the Finance Minister understand it better of Commerce goes there But, while a number that what would be the approach of America. of countries in the world are raising objections They don't bother to seek the advice from regarding the said agreement, our friends any quarter. They do not either Seek the are giving full support to it in the House and advice of the l\Iembers of the Parliament or the Hon. Minister of commerce and the Hon. the Opp05ition, They are busy in pulling their Minister of Finance are busy in extensive legs, They are not concerned about the ;:JIlrS in the country ((' 1(,', the! the said dignity and the future of this country. Have agreement is the best one, you ever discussed this issue with the economists of 'he Universities, scientist? This is the difference between the and industrialists? There was no discussion world and us, It looks peculiar to us and hurts at all. We were being taught a lesson daily our heart. I know it but I don't want to and it is not being done so from today. It mention those poir,ls. Today, the laws of hurts our feelings, That very hon. Member, India are being put on test in the Geneva who once and said that it is after five office of GATT, Whether the laws would be thousand years that such a Finance Minister changed and amendment to those laws is born, who is showing a ray of hope to the would be carried out in the capital of India? poor, is not present in the House now. You The documents are being prepared to do not possess that much power to destroy advise them there. But, even after giving an the history of lasttive thousand years. Before invitation to the Parliament of India to hold the advent of English, 300 years back, ours discussions. ourhon, Commerce Minister is was a rich country. i-Iave you ever thought not in a posillon to tell us as to what '!:: ; how we became rich ? It were gold laced happen to our patents law, Whether those cloths of Banaras, Muslin of Dhaka, printing will have to be amended or not? Shri Jaswant of Rajasthan, utensils of Moradabad, Singhji and our another friend have said that carpeniers of Hyderabad and blacksmiths, amendments may be required to be carried weavers and other artisans of the country out in ou r Constitution. Have you ever thought who made it rich. It all used to go to the about this? It you have II']0ugnt about it, World's markets. The multinationals were Whether the Government have made any not invited to come to o..:r ~ountry but instead, commer.t" before the Parliament or the they had come to this country because we 47 Discussion Under MARCH 30, 1994 Rule 193 48

[Sh. Chandra Shekharj Now, a new world Government is in the offing. My problems is that when I speak were rich at that time. Our country was here, I speak as an ordinary Indian citizen called to be a 'Golden Bird.' They had !":ot but our hon. Finance Minister and our hon. come to make us rich but to take our wealth. Commerce Minister have become the citizen Nobody, in the world comes with its money of the world. They talk of world politics. They to make rich others. The government would are no more Indian citizen because of them, have to be more wise. Such a thing has the whole world is one. Where our Rishis hsd never happened in the world. This world is gone, they have reached there. "Ayam Nigah very ruthless. Ii says that there should be Paroveti Ganana Laghuchetshaiam, Udar protection but the protectionist should not Charitanam, Vasudhaiva kutumbakam". It be brought in. We get an opportunity to means that "It is ours, it is yours" is the travel openly in the markets of the world. thinking of narrow minded people. For large Somnathji, if you don't mind, you would hearted people the whole world is like a perhaps have not forgotten that when Karl family. Marx wrote 'Das kapital', he had written a paragraph in a German edition of Bishops, 'we are narrow minded people because which ourhon. Finance Ministerwas referring we think about India, the poor people of this to just in some other context. He had said. country, the farmers of this country and their that the political economics is a dangerous huts. They think about multinationals, game. The man gets in touch only with whether it is Washington or London. Have a those feelings which arises from his heart. mercy on the people of Kalahandi. He had further said that while dealing with Remember those thirsty people of Barmer political economy, the frustration of a man and Jaisalmer as well as the Story of their comes out. He also gave an example in this thirst, their hunger. Their hunger stricken context. I am telling you the definition of that intestines will decide the politics of India and without lowering his dignity. He had said that it is not only I, who is saying this. Now, you if you argue with the Bishop on 35 or 38 have decided to go ahead with agricultural principles, he would always say that we all reforms. Once. Pandit Jawahar Lal Nehru are the progeny of one God and we should had said that if we could not prejudge the have the virtues of love and harmony among rising dust in the crores of huts in our us. But when you say to the Bishop that one country, it would take a form of a cyclone and yard land ofthat particular church belong~ to bring down'all our palatial buildings. He had us, he will forget everything and take out a favoured land reforms. You may give as weapon to attack you. This is the human may statements, give invitations to nature. Therefore. I want ;0 tell you that if multinational and undertake land reforms, that country have any inkling of an attack on these all cannot go simultaneously. "Hansat its economic interests, it will reproach you. Satai Phulewai Galu. Ek Sang Nahin Hoi The people of America and France have Guwalu". It means, two things cannot go said that today in this poor country, the together. You have dt::cided your own way labour is available on cheaper rates. but we have objection to flow that way as we Therefore, some restrictions should be face difficulty to trudge that way. imposed on this also. The GATT will not vest powers to impose restrictions on agriculture, You must remember what the history seed and pharmaceuticals but it will vest is? !twas after World War-II, that IMF, World powerto impose restrictions on human being. Bank and this third institution, GATT were 49 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 50

formed. The sole purpose of these three seven years back, foreign companies used institutions was to protect the intrests of to send us all material. Now, what we have Multinational Companies. Their aim was to done in the last 40-45 years, will it all be spread the interests of rich countries in the destroyed or done away with? We have no· whole world. Today ,Ihis GATTis dominating sympathy for them because when the hon. the scene. Finance Minister had grven his first speech and even Advaniji had also appreciated I would not go into the details of it. I have that, ourindustrialists had cursed us. Today no knowledge about the number of councils, you are talking about high~chnology but no commissions as well as the committees. multinational company"of the world is Whether, Supreme Court will intervene or prepared to come forward to offer high not but it is sure that they will intervene. If technology. They are ready to invest to take you want the Indian farmers to pag behind, over one organisation each of our you may let it happen bul if the Indian farmer industrialists. Everything will go into the sow the seed by mistake, whether Cargill hands ()f foreign companies. They say that Company will have a right to file a suit in what difference it would make? The people India or not? Please lell me if the agent of of this country wil! get cheap, good quality Cargill go 10 the villages of India and file a and multi-flavoured items. It hurts our suit againstthem, will it not be an interference feelings. But when we feel that we are in our sovereignty? I don't know it they will do Indians, it brings solace to our hearts. If so or not but it is not new thing. Those every item is foreign made, thes country will .Multinational Companies which come to appear desolated and look like a cremation India, can bear the loss of crores of rupees ground. Therefore, it appears to me that for two, three or four years to outdo our there is vast difference between their thinking indigenous trade. This is the history ofthese and our thinking. This difference in thinking companies as well as the world. There is one compels us to speak such things. Mr. company, Pepsi Cola which has been running Speaker, Sir, I assure you that I have even Into loss forthe last three years. Can Indian no remotest feeling to denigrate anyone. Companies bear such a loss? Our hon. But it appears to me that India's future is Finance Minister..... entering into an age of darkness. I don't know how long this debate will continue. SHRI UMRAO SINGH (Jalandhar): After The hon. Finance Minister has just said that its entry into Punjab, the cost of a field of if the power enjoyed by the Centre are tomato has risen to Rs.2(J,OOO. diminished the country will disintegrate. Don't discuss about States. The State SHRI CHANDRA SHEKHAR: Umrao Govemments are diminishing the power of Singhji is speaking correct. He aslo speak in the Centre but it is you people who are doing the same tongue. I read a statement of our that. Even if your Governments are in the hon. Finance Minister that the industrialists States, the people would have no faith in the of India should learn something new. These Centre. If the people are not with you, the industrialists have been getting protection state Govemment cannot protect you. You for the last forty to forty-five years. I was even cahnot save the country from perplexed to hear that they will give an disintegration. It is because of you that there opportunity to these foreign companies to is a danger of :!isintegration. Whenever come to India and even they would be given countries diSintegrate, the hearts of the priority over our Indian Companies. Forty people of those countries get hurt. That is 51 Discussion Under MARCH 30. 1994 Rule 193 52

[Sh. Chandra Shekhar] people. The realities of economic life are very unpleasant and this unpleasantness is why the hearts of the people of this country quite evident. You may think whatever you are also getting hurt. They think that they are want but I would even reiterate this point the people who attained freedom and self- tocay also. Hon. Shri Jaswant Singhji and pride. Now. you are putting all that on stake. Shri George Fernandesji have raised many There are people like me who also have a points on this issue. Shri Fernandesji was thinking. Whereas, I am not at all :'oncerned expressing his grief. Whatever may be your with all these things but I also know that what opinion about them but what they were I am speaking is not going to influence you. speaking about, were hard realities. You Till I am here, I would continue to put my should not ignore the suggestions of every views. person by considering him insignificant. There are other people also whose hearts Mr. Speaker, Sir as you have are full of love for this country. They have mentioned, science and technology is a far- their feelings. It is not that one who has sighted approach. The hon. Finance Minister become a marxist-communits, has become has said that private companies could give an enemy of the country. It is also not that donations to research institutions, which because you are sitting on the seat of shall be exempted from tax. Don't think that power, you are a patriot and there is nobody it is one sided work. It is a co-ordinated work. With us. Which companies could give donations to research institutions? Of (:ourse, these will [Eng/is.h] be Multinational Companies. Where would our scientists go? Even if they love their SHRI MANMOHAN SINGH: We have country, they would not have adequate never said that.(/nterruptions) material. The facilities of research will not be available with them. Even all our scientists [ Trans/ation] will be constrained to work in these multinationals without venturing out to foreign SOME HON. MINISTERY'()u have said counties. This is the situation prevailing in it. (Interruptions) our country. You ;jay that there will be no restriction imposed on us to give subsidy. SHRI CHANDRA SHEKHAR: Mr. GATT does not impose restrictions. Hon. Speaker, Sir, I want to say so because Finance Minister. if you would think only today, thE: country is passing through a about GATT, you would put us in great critical situation. Yesterday, some comments confusion. But, you havE' admitted that GATT were passed on us b' It I don't consider them and IMF haVE: giVbl adVice to yvu. On thu worth repeating here. When it is being said one hand, IMF adVised you to cut down the again and again, I consider it a right to say rate of subsidy on fertilisers, agricultural SOmething. Yesterday, II was said that I items and food and on the other hand, GA IT consider myself a patriot and how can I be would wield its pressure. Thus, you will be a patriot when I had allowed foreign aircraft's comered from all the sides. Don't allure us to land in this country before they attacked with all these things. you '·.'Quld prcGent this an Asian country. At that time I had admitted document one day and a different document in the House that I .,:.(.)wed them to land the other rJav. This will put the people in here. Whom did I consult at that time? There confusion. You do not try to exclude the are two persons sitting here- Advaniji and 53 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 54

Atalji- who know it well. I would not like to go 'Hum akele hee chale they jaribe manjil into those details because it does not manar, log ate hee gaye aur karvan banta appear good to settle the dispute of big gaya". personalities by making references of bureacrates. Therefore, I would like to put SHRI RAJVEER SINGH (Aonla). an end to it there itself. (interruptions) Encouraged floor crOSSing and thus used to increase your own party's strength. SHRI UMRAO SINGH: Terrorists from (Interruptions) Pakistan .... ( Interruptions) SHRI MANMOHAN SINGH: 'Oil behlane SHRI CHANDRA SHEKHAR: Mr. ko Gailb ye Khayal achha hai'. Speaker, Sir, the han. Members are correct that I had made a statement in this House, SHRI CHANDRA SHEKHAR: Nothing in the context that I was calling the terrorists is going to be gained by this carvan. When from Pakistan for talks. I agree to it. Sir, people set out for a pilgrimage, many coolies today I would request you thatmy step was also accompany them to port their luggage, in the right direction. I had given permission but the later do not reach the destination. to land foreign aircraft's here only to fight Therefore, the hired carvan won't serve the against illegal annexation of a country of purpose. If you just want to remember any Asia and notto attack a country of Asia. And, couplet remember this one: I think it was a right step. But some people object to it and within 2-3 days'l asked the 'Gar dhoodri hai manzil khud apna .'1 President of America to take 1119'S" aircrafts rehuma ban, Wo bhatak gaya hai aksar, jise out of this country because some people of mil gaua sahara'. this country are enraged over this issue. Now, I would request the hon. Commerce THE AGRICULTURE (gHRI BALRAM Minister that you also convey our JAKHAR): Mr. Speaker, Sir, a serious discussion is going on this issue and many displeasure to America and tell then that we hon. Members have expressed their do not want to sign GATT agreement. On opinions. All members are respectable, but, your displeasure, I had asked the President there can be'conflict of ideas and usually it of America within two days that they should happens. It is not bad at all. I admit take away their aircrafts back. If you have it. (Interruptions) the same courage, you tell America that it is the voice of the Parliament of India, the [English] voice of villages and the poor of India that we will not sign this agreement. If you do so, It SHRI SOMNATH CHATTERJEE: would be good for you. (Bolpur) : All that should be in good spirit. Do not make malafide allegations against me. Shri Pranabji, what has happened to (Interruptions) . you? I know you since 1962. You and I have worked together for a long time, we had [ Translationl dream of reaching our destination. Both of us have 'Seen ups and downs together. I SHRI SALRAM JAKHAR: You are my remember the couplet ot Dr. Manmohan hon:elder blather and a good friend. I have Singh, when he recited not done anything without consulting you. 55 Discussion Under MARCH 30, 1994 Rule 193 56

SHRI RAJVEER SINGH: Have you compromise on any point. I consulted the consulted him prior to singing the GATT leaders of the opposition and tried to make agreement? them understand, that it is not the work of ours only but it is the task for everybody. Our SHRI BALRAM JAKHAR: We consult future depends on i~ and I invite your you also, Shri Rajveer Singh. suggestions in this regard. We should be capable of mending our mistakes and we- Mr. Speaker sir, the hon. Minister of should be bold enough to confess our own Finance has thrown light on the various mistakes. I am not afraid of it. I called all the aspects of this subject. Under discussion. I farmers' associations to my departments would like to speak in brief regardinq and asked them what they wanted and in agriculture. I will not take much time of the respect of agriculture how they want to House. accept the GATT agreement. there are always two aspects of an issue. The one is While I was discussing this subject with positive and e another one is negative. It is Hon. Shri Jaswan~ Singh you had asserted applicable to every issue of the world. We that it was not a matter of a party. But it invited our experts and hampered. We relates the farmers of our country and our invited our experts and asked them to look future. I would like to assure you that I am into it so that the interests of the farmers are concerned about the country frist and not hampered. We tried to make them thereafter the farmers. I admit and believe understand and redress their grievances. that if the future of India is to be improved, This was our objective. I had stared a the economy of country is to be improved. procedure so that the interest of the farmers It can be done by increasing agricultural; should not be hampered at all. That production and boosting up the morale of procedure is till in progress and it is yet to be farmers. There are no two opinions in it. finalised. I want to introduce all those foreign laws in our country which are in the 13.00 hrs. interest of our country and see whether their enactment would be beneficial or not and If the interest offarmers are hampered, whether we should discard those laws. the country cannot progress because even Yesterday Shri Bhogendra Jha told "Do not today at least 70 per cent citizen of the be coward. Leave it, do not sign the GATT country have cultivation as the only means agreement". But you miSinterpret it. I am of their livelihood. We all are sitting here and addressing you, We will be coward only I would like to beg pardon of the hon. when we surrender to them. We are not Minister of Finance to point out one thing. If talking about our surrender. You might have the farmers do not fill the godowns of the read 'klaibyam ma smagam Partha, na etat Govemment, their fiscal cannot hold water. tway; up padyate' ."Kritwa wa prapsyasi There is inalienable relation between them swarga, Jitwa wa bhokshyase maheem, and us. Our country can progress only whE'n Tasmat utishtha Kaunteya, yuddhay krit the condition of our farmer:> ametionatedc nishchayah" _ (Interruptions). I would like to assure you that I policy cannot compromise their interest If we decide to fight. we need to go for any petty gains. Even the entire wealth ahead,. We do not wantto surrender, rather on this earth cannot compel me to we want to fight and win the game and the compromise with my self-respect. I cannot farmers of India have proved it. 57 Discussion Under CHAITAA 9, 1916 (SAKA) Rule 193 58

(Interruptions). million tons in near future. Previously we used to import oil worth about As.1200 [English] . crore. But now we are exporting oil and oilseed products worth As.1850 crare. This all has become possible only by virtue of the SHAI SOMNATH CHA TIEAJEE: Who efforts of our farmers and scientists. is your enemy? I went to Aajapur village on 13th. The SHAI BALAAM JAKHAR: My enemy is people have adopted t new methods of poverty. agriculture. The bybrid-seeds are being grown there. It is not foreign know-how but by own private indigenous company. The [ Translation] people are producing fifty to Sixty tons in those fields which could produce seven to Our farmers have accomplished it in a eight tons only in past. jiffy. The population of America is 20 to 22 crore and it produces enough foodgrains SHAI AAJVEEA SINGH: Are they doing and exports. How much means does it due to the Dunkel agreement? I would like to occupy?.(lnterruptions) The population of know whether the production has increased our country is 90 crore and we are capital to duetothe Dunkel proposal orbyvirtue olthe feed them properly because of the labou r of . labour of the farmers. our farmers I will not accept the argument that our farmers are incompetent or SHRI BALAAM JAKHAR: Please take inefficient. They are worthy and they have your seat. Your colleague is on his leg. I am strong will power to fight and they can saying it very seriously. produce foodgrains in sufficient quality, but they need our guidance. Our scientists have SHAI SUAYA NAAAYAN YADAV helped them in this regard. We are not (Saharsa): Had you mercy and com·passion . achieving the goal only because today there for farmers, you might have ,"!ot interrupted. is difference between ourspeech and action. (Interruptions) We must know our origin and SHAI BALAAM JAKHAA: I want to goal. I knowtowhichthingamanisattached point out that our future is very bright and it . and associated sentimentally. The heart of should nol be eclipsed at all. farmers cry when their crops do not grow properly. It seems to him that his own child Subsidy is no oroblem. There is no has fallen sick, and at that time it is realised problem relating to export or import. These that blood is thickerthan water. The farmers points have already been made clear. I, deserve our salute and we ought to do so. therefore, do not want to waste the time ot the august House by repeating these issues. Previously the production of our I would like to discuss regarding the patent foodgrains was 47 to 48 million ton. Today of seeds only as to what rights we would the stock of foodgrains is full and now the have on them and how it would affect the production has reached up to 180 million farmers. I would like to assure you that we tons. Previously the production of milk was will not allow anything which hampers the 20 million tons which has increased now to interest of the farmers. I want to dispel your 61 million tons and it is likely to become 70 doubt which you raised in the meeting. 59 Discussion Under MARCH 30,1994 Rule 193 60

{English] need of formulating new law and therefore. a procedure for formulating a new law is in SHRIMATI DIL KUMARI BHANDARI progress in which we can safeguard the (Sikkim): Sir, I want to seek one clarification interest of farmers. In this regard StH; on the question of seeds. Frankly speaking, Chandra Jeet Yadavji had asked me as to I do not understand much of these things. what apprehensions can be made or whether any doubt can be raised or is there anything SHAI NIRMAL KANTI CHATTERJEE: which can go against it. I would like to reply That puts you on equal footing with them. in this context.

SHAIMATI DIL KUMARI BHANDARI: Mr. Speaker, Sir, we can produce seeds The Business Standard of 18th February for farmers by three methods. The frist says I do not know whether it is true or not method is to adopt the patent system, the but I just want to educate myself- and I second is to adcopt the sue-generis system quote: and third one is to adopt the method which is in between of these two. We have chalked "The Government was alerted on ihe out the programme that sui generis system. process patent given to Agriccetus Tansgenic cottonseeds by an article in a Canadian [English] joumal Rati Communique. The article argued that this particular seed would have adverse About the issue of the effectiveness of effect on major cotton producing countries." asui generis system under UPOV provisions, Shri jaswant Singh time and again referred It further goes on to say: to 1961 provisions of UPOV. (Interruptions)

"In a move replete with retaliatory SHRI SOBHANADREESWAAA RAO potential, the Government has decided to VADDE (Vijaywada): Earlierthe Government revoke a process patent given to a U.S. was telling that it is an independent one and company Agricetus Inc." it need not follow any UPOV convention. Can you please clarify? I want to know whether it is true. If in the beginning itself the patent system is playing SHRI BALAAM JAKHAA: I am coming havoc, what will be the effect when we do it to that. in full swings? It may be indicated that actually in [ Translation] UPOV there are only two provision open now that is of 1978 and 1991. In fact the SHRI BALRAM JAKHAR: It has been intemational convention on the protection of my occupation to saw and grow seeds. new varieties of plants of December 2, 1961 Those who have not sown or grown any stands revised at Geneva on November 10, crops, or who are not familiar with these 1972 and on October 23, 1978 and on activities, cannot know it. We have produced March 19, 1991. Nevertheless, there are hybrid-seeds. We have also multiplied seeds. two counties namely Spain and Belgium I would reply to it afterwards. So far as seed which continue to be guided by 1961 Act as 'Sare concerned, I have come to this amended by its Additional Act of 1972. conclusion after discussion that there is Countries which are not yet members of 61 Discussion Under ~HAITAA 9,1916 (SAKA) Rule 193 62

UPOV are free to join 1978 convention by SHAI SALAAM JAKHAA: I agree with December 31, 1995. Thereafter only 1991 you in toto. provisions would remain open for new members. Hence. India has complete [English] freedom •.lOd discretion to join either of the two provision if it chooses to do so. Out of SHRI SOMNATH CHATERJEE: It is in 24 countries which are members of UPOV the existing GATT but in the new GATT as on date if two countries namel¥ Spain and there is no such thing. Selgium continue to be the members as per 1961 provision as amended by its Additional [ Translation] .1:\(.1 of 1972 there is no point for an" dpprehension as to why a sui generis system SHRI RASI RAY (Kendrapara): Mr. confirming 1978 UPOV provisions would not Speakel, Sir, the Hon, Minister raiSing a be rated as an effective protection. very good point. Through you therefore, I (Interruptions) There is nothing to worry on would like to raise a question as to whether this. They object that it is not ~orrect and the entire procedure of GATT is legal in effective. If under the GA F pro'Jisions they which it is stated that either you leave or can object, the onus to prove that thing will take. My submission IS whether it is an be on the complainant party.(.fnterruptions) integrated hole. Moreover, he is stating that the Government is agreeing with him, and SHRI BHOGENDRAJHA (Madhubani): perhaps it is the opinion of the Government it is not so according to the Final Act. is also that it can withdraw after giving a six- month's advance notice. Then what is your SHRI SOSHANADREESWARA RAO opinion about 'either leave it or take it'? \'ADDE: The on'JS is on the accused. (interruptions) (Englis~

SHRI SAL RAM JAKHAR: Even if it is SHRI NIRMAL KANTI CHATTERJEE: proved to be that. I have the option to walk It is not only the complainant but the GATT out of this GATT provision and GATT says that this has to conform the patent agreement giving six months' notice. That I agreement and, therefore, they will also have said. (Interruptions) Yes. absolutely so make a review. ( Interruptions) SHRI SAL RAM JAKHAR: What I am [ Translation) saying is, I am saying with authority.

SHRI ATAL SIHIIt~1 VAJPAYEE MR. ~;DEAKER: I do not want the (Lucknow): Mr. Speaker. Sir, the han. Minister to make any commitment on this Minister of Agriculture has spol

[ Translation] The sui generis system is unique in another aspect as it is the only system SHRI RAJVEE'R SINGH (Aonla) It has contemplated which could enforce sovereign been assorted openly. Now it must be right on our vast genetic 'resources confirmed. (Interruption) commensurate wJth' the provision of Bo- diversity convention of 1992. India is one of {English] the eight centres of genetic diversity in the world and hence on balance sheet India may MR. SPEAKER: It sho.lld be the be a net gainer by deciding terms and considered view of the Cabinet, not the off conditions may be on mutually agreed basis the cuff statement. which is otherwise going presently free. This is essential as some of the countries [Translation] , have already resorted to the patented of life forms. ( Interruptions) The issue raised on licence of right is SHRI RAJVEER SINGH: Our han, not considered appropriate as there would Minister is right. He speaks in favour of the not be any incentive for investment in R&D farmers, efforts. Nevertheless, to meet the essential requirement as and when situation demand /English] the Government could very effectively have a compulsory licensing of such protected MR. SPEAKER: You help the House, varieties for ensuring availability of seeds to the farmers. Public concerns may over- SHRI BALRAM JAKHAR: I am not riding priority. saying anything out of the agreement. [ Translation] I all. saying it according to the agreement, according to what is written I implied to speak that after it we could there. have got means to maintain the freedom of our farmers. The Indian sui genens system is, in fact, unique as it contemplates for the protection Yesterday Shri Rao had asked whether of old varieties development in the country. the farmers can sell the certified seeds after This is considered in the best national interest growing them. We are to grow our own seed as essential derivation clause under UPOV free and give them wherever they want. 1991 has brought about meaning thereby :hat Jny breeder of a new variety will have to SHRI ATAL BIHAR I VAJPAYEE: But seek permission to the original breeder if he they cannot sell. :hooses to exploit theold variety through ;osmetic breeding. As such abo,!Jt 2000 SHRI BALRAM JAKHAR: Please listen varieties of diff~ crops and commodities to me frist. Why I am doing this I am doing would. automatically get protected'andhence it for the welfare of the farmers and not for 65 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 . 66

Anybody- else. I would like to submit that if are accepted, then how can certainrnatters farmers are interested in growing and selliny be exempted. the seeds on their own, they are free of purchase them from the National Seed SHRI BALRAMJAKHAR: Had you been Corporation, State Corporation or Indo engaged in the work of growing seeds, you American company. After the seeds are would have been aware of the situation. prepared, they should then get the grading (Interruptions) You please sit down. I am' and packaging of the seeds done and finally' clarifying the position. if you listen to me, get the packets stamped shwing the quality then only you would corne to know the of the seeds. They are responsible and have factual situation. to pay the penalty if seed~ are found to be of sub-standard quality. Suppose Shri Jaswant [English] Singh produces wheat seeds as much as 100 maund. But he without getting it patented SHRI RUPCHAND PAL: (Hooghly): Up or getting licence issued sells. when I come to 1998, you review. (Interruptions) to know that his seeds are of very good quality, I will like to purchase the seeds from Mr. Speaker; If he does not yield, you him. Nobody can prevent me from doing so. cannot talk. If he yields, I have no objection. But it would be my responsibility to see that the seeds I have sown are of good quality. DR. ASIM BALA (Nabadwip): How will However, if he gets them patented, if he gets we get the new line of seeds? the licence issued, then the responsibility would fall on the seed corporation. Otherwise ( Interruptions) anybody is free to purchase and also sell the seeds the way he likes. So far as the high MR. SPEAKER: Let us not mislead breed of seed is concerned, they are ourselves on that. developed very freque~tly. I would like to submit that our doors are always open for ( Translation) farmers in this regard. We have the capacity and resources to prepare seeds to fulfil the SHRI BALRAM JAKHAR: I am coming requirements of the whole wond. It has been to that itself. Had you been engaged in this pOinted out that since the labours are paid work you would have been aware of the very low wages this should be stopped. My things. Recently a former Prime Minister submission is that such question does not while speaking to the people of a village arise we cannot accept it. observed that perhaps America would no more allow us to have a hold even on 'Neem' SHRI BHOGENDRA JHA: But the tr~e. What is this? How can it be? You have question has already arise. already caused a great loss.

SHRI BALRAM JAKHAR: How can it be PROF. RASA SINGH RAWAT: Mr. accepted? If it is accepted, the labourers speaker, Sir, the WotldBank has conducted would be.n loss. How can we accept this a secret surveythrough OECD-Organisation proposal? (Interruptions) of Economic Co-operation and Development. Its repoFt states that the prices SHRI RAJVEER SINGH: When an of several foodgrains like wheat, maize, agreement is signed and all the conditions baney·etc. are likely to increase from 4 per 67· . Discussion Under MARCH 36, 1994 Rule 193 68

cent to 7 per cent due to the iberalisation everything takes place perfectly.and neither policy adopted under GATT. our production S4:1Hers nor .our farmers bear any loss. So far as the question of entrusting SHRI BALRAM jAKHAR: I am not the work of preparing seeds is concerned aware of it. National Seed corporation has already been set up for the purpose. [English] SHRI RUPCHAND PAL: But who will do SHRI SOMNATH CAHTTERJEE: the work. will if be done under GATT system (Bolpur): It is World Bank report. Shri or our people would do it? . Manmohan Singh will be angry with you. SHRI BALRAM JAKHAR: Do not ask [ Trans/~tionJ what you do not know. You are asking me whohas been engaged in this'Work through SHRI SALRAM JAKHAR: My out his life. submission is that you have already doNe great damage. A. person should do only [English] what. he knows and what is not harmful. Please listen to me frist. MR. SPEAKER; This system has to be created by us. You will d6!t or Parliament will DR. RAM KRISHNA KUSMARIA: do it. (Damon): I would like to know from the hon. Minister of agriculture as to who will be SHRI SOMNATH CHATTERJEE: Who entrusted the work of making seeds under will decide which is the effective sui-generis sUI-generis system. Will 75 percent of the system. farmers of this country do that work? MR. SPEAKER: Parliament will decide. SHRI BALRAM JAKHAR: You frist let you wiJI decide. me complete my point. I am telling as to who will do this work. Why do you ask me question [TranslationJ without listening to me? I am going to reply your question only. SHRI CHANDRA JEET YADAV: Mr. Speaker. Sir. in the meeting convened by MR. SPEAKER :You please sit down. . the Hon. Minister of Agriculture, I had asked He is not yielding. My opinion is that the hon. a question about sui-generis system. Minister should make it clear to him as to Perhaps the han. minister is trying to answer what i&sui-generis system, and what does that question. I had pointed out that the the Government propose to do under this Government proposes to legislate on SUI- system. generis system.But when GATT agreement will be signed, the international Sui-generis SHRI BALRAMJAKHAR: Weourseives system would be implemented and not the have chalked out this system. besides, the one formulated by us. co-operation of the scientists, experts as well as the ruling and opposition parties is MR. SPEAKER Sir. now I would like the also be!ng sought so as to avoid any tacCuna Hon. Minister of Agariculture to make a in it. All measures are being taken so that clarification. Our fo~mer External Affairs 69 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 70 secretary, Shri Muchkund Dubey;'who on However, our sue genEiris'system is not behalf of the Government.... going to beharm us in anyway. We have enquired everything and I would work as per [English] your advice.

Mr. Speaker: Piea&e do not .eferto l:ony SHRI RUPCHAND PAL: It has .been name because it is not possible for him to state in this chapter. understand those mimes. ~nglism (Translatiotij "The mernbershall provide for protection SHRI CHANDRA JEET YADAV: I am of plant varieties either by patents of the not levelling any all sgation .This question effective sue generis system and the has been raised. provision of these paragraphs have been reviewed fouryears afterthe entry into force [Engfish) of the agreement."

"The point that arises here is whether [Translation] any Government can have a separate sui generis system of its own through national SHRI SALRAM JAKHAR: Rupchand ji, legislation when there is already in existence this is the same thing. You re not aware of a sue generis system in the from of an it. an exhaustive discussion has taken plac9 international treaty. The answer to this and you are still ignorant of the main contents question is that it is very doubtful that any of it. Government would be allowed to have a sue generis system of its own ... Once we [English] become a party to it, then, the right of our farmers to use their won seeds and the right SHRI SOSHANADREESWARA RAO of our scientists to experiment with those VADDE (Vijayawada): Do you follow the seeds would be severely curtai!ed ... Once UPOV treaty? we become a member and sing this proposal, then, we old remember that in the Dunkel SHRI SALRAM JAKHAR: Who is Text, the burden of proof is reserved. The following the UPOV? I have not told that. burden of proof is not on the partywhich is accusing but on the accused: [ Translation]

Therefore, I want a very specific answer I have stated that we have an option, we in this regard. have still not adopted either of them. We have both the options. (.Trans/atiolj) [English] SHRI BALRAM JAKHAR: Mr. Speaker, Sir, at present we are neither members of to That is what I have said. I have not sui-gengeris sysiem of 1978 nor that of adopted any system. Why can you not listen 1991 . We ourselves have to decide whether to it properly? That is what I have said: It is we are to accept the membership or not. • enough. It is our option whether we join this 71 ();scussion Under MARCH 30,1994 Rule 193· 72

ISh. Balram Jakhar] SHRI SALRAM ~AKHAA: That is what I am saying. or that. We may not be joining at aU. This is also there. [ Translation]

[ Translation] Rao Sahab, you are wrong. The farmers will suffer no loss on seeds. (Interruptions) I know only that farmers would not find I am never going to accept that. any hurdle;.; in their way due to it. He is not (Interruptions) to face any problem with regard to seeds. He will produce the seeds unhindered and do all [English) the farming activities. I have malJY resources.

SHRI SOSHANADREESWARA RAO [English] VADDE: You are misleading the House. That is what is assured. What I am doing is opening it. What I am saying is mv SHRI SALRAM JAKHAR: I am not farmers have the right, have got the might misleading the House. What I ..lin saying is and capacity to produce more. the truth and the fact.

[ Translation) [ Translation]

You might have got the pOint now. I am SHRI RAJVEER SINGH: Earlier, in the asserting my point because I, too, hold House and outside it, you. (interruptions) some position. I am not soing to accept at all anything misleading about it. The farmer's MR. SPEAKER: He will not reply that interests will not be harmed today or in • way. He will reply in his own future. style.( Interruptions)

rEnglish] MR. SPEAKER He is not yielding.

SHAI SOSHANADAEESWAAA AAO SHHI RAJVEEA ~INGH: He is sitting VADDE; You will be ruining the farmers. and I through that he has yielded. (Interruptions) (Interruptions)

SHAI SALAAM JAKHAA: I can only say MR. SPEAKER You go and talk to him this much that nobody else would be able to in his chamber. safeguard the interests of the farmers.

SHRI SALRAM JAKHAR: There are [ Translation) different stages of a seed; frist it is nucleus The question does not arise. seed, then it is breeder, third is the foundation seed and then it is certified seed. their [English) multiplication process is different. The farmers will not face any problem. SHAI SOHSANADREESWAAA AAO VADDE: Please tell whether t~e seeds will SI-IAI CHANDRA JEET YADAV. H~ be retained or not. cannot sell his seeds. (Interruptions) 73 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 74

[English] of. my farmers and sCientists. {Interruptions)

MR. SPEAKER: The hon. Agriculture We will change the destiny of farmers. Minister is ~uite capable of convincing you on all the points which you want to'raise. SHRI RAJVEER SINGH: Frist, you said Only thing is, you should raise it separately that you oppose it whereas the hon. Minister and in such a manner that he is able to ,eply of commerce had supported that. to those to points. please let him continue in his own fashion. After that, if you have any . SHRI BALRAM JAKHAAR: I had stated doubt, you are most welcome to his Chamber that the farmers'.interests should never be for a cup of tea and discussion. harmed. (Interruptions)

[ Translation] [English]

SHRI BALRAM JAKHAR: Suppose, a SHRI RUPCHAND PAL (Hollghly): I farmer produces hundred mounds of seeds have a very small question to ask. We and retains 25 maunds out of it for his own should either opt for a patent or for an use. Naturally, he will sell the remaining effective sui generis system. I would like to quantity of 75 maunds. Who can stop him know whether that sui generis system is from selling it ?(Interruptions) effective or not will be determined by whom. That is my frist question: DR. RAMKRISHNA KUSMARIA (Damoh): You say that the farmer cannot SHRI BALRAM JAKHAR: We are just resort to commercial sale of seeds. calling it as an effective sui generissystem; Supposing, he store it for four months and that is what we are doing. It is we who are then sells it, can it be called a commercial doing it and this will be a legal document by sale? this parliament. .

SHRI BALRAM JAKHAAR: I can say it SHRI RUPCHAND PAL: We cannot do with confidence that there is no restriction on it according to this Act. the farmer .. (/nferrupfions) SHRI SALRAM JAKHAR: We will do it. For me, the farmer is my god. SHRI RUPCHAND PAL: I would like to SHRI RAMKRISHNA KUSMARIA: You know whether it is effective or not will be being caught in a whirlpool, how will you decided by whom. My second point is that it defend? should, at least, be reviewed after four years. SHRI RAVEER SINGH: What has pressurised you to support it? SHRI BALAAM JAKHAR: We are doing this according to this-Act.(lnterruptions)

SHRI BALRAM JAKHAR: I do not ME. SPEAKER: Request Shri Jakharto believe in pessimism but in fighting my ways replay to Shrimati . She out. I am fully confident abuut the capability wanted to raise a question. 75 Discu¢on Under MARCH 30, 1994 Rule 193 76

SHRIMATI GEETA MUKHERJEE SHRI RUPCHAND PAL: Is it not a (Panskura): Mr. Speaker; Sir,JakharSaheb subject to be cross-re"taliated? is very much co-operative with me. I am asking a specific question. If a particular MR. SPEAKER: We have no time; if you type of seed has been patented-product as have to cross-retaliate, there is a procedure well as the produce and from that process if to be followed. Frist of all, the information we produce something in our country, can has to be collected; it has to be examined; our Seed Corporation be caught? I would there has to be consultations; it has to be like toknow whether it can be caught or not. reftered to the disputes settlement and then question of cross-retaliation will come. MR. SPEAKER: Who will do it? They do Please do not worry about all those things. not have a machinery to do it unless the Government co-operated. (Interruptions) On SHRI SAIFUDDIN CHOUDHURY the floor of the House, the Government is (Kalwa): Sir, no this very important point, to making a categorical statement that if get the things clarified, I wish to ask my anybody has to be proceeded against, it has question in a very simple way. Supposing a to be through the Government. The GAD patent seed is taken by a farmer of this does not have the police or the court or any country and be produces the seeds from rnachinery. that. He does not get it certified, but he multiplies it. And after multiplication of the SHRIMATI GEETA MUKHERJEE: But seeds, if he gives it to his neighbour or sell Sir, they are going to sign that GAD it in the market, will 'that prevented? That is Agreement. (Interruptions) what I want to know.

MR. SPEAKER: That in not so: let us MR. SPEAKER: No. not create unnecessary fears in the mind of the people. [ Translation]

SHRI SALRAM JAKHAR: Nothing will be done unless you authenticate. [ Translation) (English) SHRI BALRAM JAKHAR: We can take Seed from anybody, if we wish to and benefit SHRI SAIFUDDIN CHOUDHURY: That from it. If, it is not beneficial to us, then no is your reply. What Shri Rupchnad Pal, the one can c!ompel us. Regarding the I'0int initiator of this debate is saying is that the raised by Smt. Gita ji, we are taking action on right to multiply this patented seed will not be that. That was a foreign company. given. That is what he is saying. Let the clarification be given on that. (English) [Translation 1 We have already decided to get that thing removed from this patent list. we are SHRI SALRAM JAKHAR: He will have going to have our own and we are going to the right only when he sells it with his own do. nothing against our framers. commercial blrcnd name. 77 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 78·

[English] MR. SPEAKER: That is what Shri Shankar Aiyar told you yesterday. SHRI SAIFUDDIN CHOUDHYRY: I understand that, but what about multiplication SHRI SOBHANADRESWARA RAO of the seeds (Interruptions) VADDE: The Government must clarify this. This is the most importand thing. SHRI NIRMAL KANTI CHATTERJEE: There are many surreptitious·ways by which MR. SPEAKER: Okay, now it is enough. it can be circumvented. Is that the whole point that you are making? (Interruptions) The House stand adjourned to meet again at 2.45 p.m MR. SPEAKER: I am allowing these question to be put to the hon. Minister and 1342 hrs. the hon. Ministeris very nice and appreciative and he is replying. It is all to remove any The Lok Sabha then adjourned for misapprehension on this point. You should Lunch till Forty-Five Minutes past ask a pOinted question and replay will given Fourteen at the Clock. to you. 14.50 hrs. SHRI SOBHANADREESWARA RAO VADDE: Sir, during the discussions that The Lok Sabha re-assembled after have taken place earlier, In this House, the Lunch at fifty minutes past Fourteen of Government has 'given a note in which it has the Clock said that it will try to bring changes in the draft to enable the farmer to retain the seed [MR. DEPUTY SPEAKER in the Chailj of this produce for the next crop. DISCUSSION UNDER THE RULE 153 The Government will try bring change in the previous original draft that was being [ Translation] drafted by Mr. Aurthur Dunkel. The Government has admitted it. (Interruptions) Final Act embodying the Result of the Uruguay Round Multinationai Trade The Government has said that it will try Negotiations Cond to bring changes in the draft to enable the farmer to retain a part of the seed. Also. SHRt NITISH KUMAR (8arh): Mr. about the Indian farmer's traditional right to Deputy Speaker. Sir. the police have sell his produce as seed to his neighbour or committed atrocities on our workers, who his neighbouring village: out thesp. two things were demonstrating against the Dunkel the Government has said that it will try to proposals. we too were arrested in this bring change in the draft. We would like to connection. Water canons have been used know through you whether the Government on our workers, they have been iath-charged has succeeded in its effort to bring any and tare-gas shells have been lobbed on change in the draft. In the tinal agreement them. Are we including in anti-national practically not a single word has been activities? Janata Dal had planned to changed in the relevent portion. organise a protest march aganist the Dunkel . 79 Discussion Under MARCH 30, 1994 Rule 193 80 proposa duly I today. But the way the police SHRI PAWAN KUMAR BANSAL are dealing with the workers, it seems, as if (Chandigarh): Sir, this is most a point. the Parliament was going to be attacked. ( Interruptions) Such action taken in a democratic ~et up tentamount to violating the fundamenial [ Translation] rights of the citizens. Kindly give proper instruction to the Government to stops such SHRI RAM VILAS PASWAN: I want to action and, the GoVernment should submit that the Government is not at all apologise here before the House for this serious to the Parliament. The hon. Minister action and should punish the guilty officials. is going to make statement here for what can be better explained by a Government SHRI RAM VILAS PASWAN(Rosera): spokesman outside the House. We seriously Mr, Deputy speaker, Sir, 25 members of object to the hon. Ministermaking a statement parliament of our party alongwith some other on what has been published in a magazine. workers were taken to the Mandir Marg A grave incident has occured in Srinagar police station at 10 a.m. today. Thousands and no statement has come about that tuill of our workers were arrested at the now but this Government is worried about Parliament street. We have repeatedly urged something published in a upon the government '10t to sell out this magazine. (/nterruptlpns) country. We are not committing any of fence. Rather this Government is going to SHRI NOT rSH KUMAR: Mr. Deput) commit an offence by signing the GATT Speaker, Si" the Government should come agreement on 15th April. We condemn this out with a statement on the use of water action on the part of the Government. We canons, lath i-charge and tears-gas shells also condemn the use of water canons and on the demonstrators outside the Parliament. tear-gas shalls on people, particularly the you should accept your mistake or this can Janata Dal workers who have been happen the you tomorrow as well because demonstrating for 2 days before the the Government cannot last long if it goes on Parliament. Many of our workers have been like that... .. (Interruptions) injured. We demand that the hon. Minister should make a statement as to what atrocities MR. DEPUTY SPEAKER: Shri Rabi have been committed aganist the Janata Ray. Dal workers during the past two days.( Interruptions) (franslation}

Mr, Deputy Speaker, Sir, I am on apoint SHRI RABI RAY (Kendrapada): Mr. of order on the paper circulated to us just Deputy speaker, Sir, the House has been now. discussing future of the country since yesterday. Today, we listened to views the [English) of the hon. Minister of Finance and the Minister of Agriculture and, yesterday. we "Shri S.B.Chavan to make a statement listened to some hon. Members from the regarding the article on R&AW published in treasury benches. The issue under the SUNDAY magazine on 27 march. 1994". discussion is as vital as that life and death of I take serious objection tt:' this. this country. Country's partition had brought 81 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 82 agrave crisis in India's history, wben the ·Whether the Government have a whole nation was under the impression that proposal under consideration to amend the we were fighting for a united India. Gandhiji pavements Act,1970 so as to be able to join tried to unify the country. The country had the paris Convention for the Protection of to suffer partition, despite the decision in Industrial Property, and if so, what are the 1930 on the banks of Ravi that we will fight details." for a united India. Nobody can stand up and say that the country was rightly partitioned. The answer given was 'No'. I am particularly referring to the hon. Finance Minister that there has been no difference in Another reply given in 1989 mentioned. Government's contribution during "There is no proposal to amend the Indian independence as well as slavery. We are in Patent Act, 1970~. a habit to commend what is bad for the country. I want to read out Parliamentary [ Translation) question and the answers thereto. This question was asked by the In 1989, the Government commit:~ Congressmember, Shri Kumaramangalam. before the house that it has no Intention of amending the Patent Laws of 1977. In the [English] GATT institution in Geneva, it reverse all its agruments made in 1984 and says that The question was: there is no need. But now, it is the opposite and it is being said that it is needed. What are "Whether a national Seminar on Patent the compulsions? Laws was organised by the NaTIONALI Worl

If so, what are the recommendations I am raising this issue because it is a made at the Seminar and whether the treachery on our country. This is no Government have accepted t~e insignificant happening. The question relates recommendations; if so the details thereof." to the country's sovereignty. agriculture. and industry sectors, the values of The reply given was: independence, swawdeshi, self-reliance and employment. In 1979. the Government used "The National Working Group on Patent to talk of making no amendments in the laws organised national seminar on Patent Patent Act and, now, it is talking of amending laws in New Delhi on the 22nd November. it. April, 1989 will be remembered as a black 1988. The Seminar resolved that the Indian day in India's history. Prior to that,they Patent Law act, 1970 in its scope and purpose Boaid that in GATT they will talk of trade and continues to represent Indian interests and commerce alone but after 1989 we requires no amendment. succumbed to the US pressure of including in it items like agriculture, intellectual I (c) There is no proposal to amend the property, services etc. The Government will Indian Patent!: Act.197C. have to State before the House today. as to wh'y did this haopen and what was the On the same subject, there was another need? Is it i in the interest of the country, it~ question in 1985: Constitution and·the crores of the people 83 Discussion Under MARCH 30,1994 Rule• 193 84

[Sh. Rabi Ray] (1967)." living here? [ Translation]

At that time the Government refused to When in 1989 the government, in its reply to Shri Kumaramangalam's questions make any contribution in it on the ground had stated that no amendment will be made, that 1 to 12 provisions of Paris convention what, then. compelled it subsequently to are aganist the interests of the country. As agree to it? Therefore. I say that April 1989 I had told in the beginning that from the view was a turning point. The Government had point of the Government, there is no difference between freedom and slavery. at decided not partake in the Paris convention. that time Shri Dinesh Singh was the Three ex-Chief Justices of the Supreme Court of India including Shri Chandrachudji commerce Minister who at present is the and Shri Hodayatallah had stated that Minister of External Affairs. He was participating in the Paris Convention would predecessor to Shri Pranabji so I would like to know what was the conspiracy behind it mean th~ death of Indian industry. Now on 15th of the next month, we are going to sign and what are the names of those officers the very same agreement. The views of the who hatched a conspiracy and were briefed Government regarding our participation in in this regard in April, 89. These all points the Paris Conversation have totally changed should be clarified. Sir, through you. I demand today. Necessitating this discussion over from the Government to call Shri Dinesh Singh to Clarify thiS Issue and explain those here. compelling internatienal pressures in which later on he had to send our officers. especially [English] when eariler upto 19B9 the Government had The Final Act Enybodying the Result of making loud proclamations that they would remain firm on the GATT i!:!sue. I would like the Uruguay Round of Multilateral Trade 10 say that the page which contains the root Negotiations. of this problem should be made public. Today this issue is being debated here so [ Translation] the then Commerce Ministershould be called here to unravel thiS conspiracy. I have drawn I want to read it out before the House. the attention of the House towards it. [English] Mr. Deputy speaker. Sir, I would like to make a mention of some original documents General ProviSions and Basic Principles. in this regard. I have got some extracts of the Nature and scope of Obligations speeches delivered by the secretary of Rajiv Gandhi Foundation and Secretary to the "The Members shall accord the Minist»' of Financ~. i would like to reproduce treatment provided for in thiS Agreement to tA'em in order to asser the truth of my the nationals of other mer ~ers. In respect contentions which I have made earlier; of the relevant intellectual property right, the national of other Members shall be understood as those natur31 or legal persons [English] that would meet the criteria for eligibility for The background paper on Intellectual protection pr'Jvidedforin the Paris convention 85 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 86 property Rights, standard and Principal GC'/ernmelit is not fair on his concerns and Availability, scope and use if part.( Interruptions) Indian view-dated 27.7.1989." SHRI RABI R;:'Y: I think I am very 15.08 hrs. correct, I do not want to yield to him. I am very c'Jrrect. (Interruptions) [SHRI NITISH KUMAR m the Chair] MR. CHAIRMAN : Nowheisnotyielding. [ Translation] Please take your seal.(Interruptions)

Mr. Chairman, Sir, I was saying that it is SHRI PAWAN KUMAR BANSAL: He IS a very interesting matter and I am raising repeatedly uSing the word Idealogue. ThiS the issue of that important conspiracy. could be a point of order also. he IS repeatedly using the word 'consplracy (interruptions) [English] MR. C:"AIRMAN: I do not think that the This is the reproduction cf the text of the word 'consplracy IS unparliamentary. Why raper presented by Shn A.V Ganesan. do you bother abo,' It? Please take your special secretary. Ministry of Commerc(; .it seat. (InterruptIOns) the meeting of the Negotiating committe under the Uruguay Round. [ Translation]

A.V. Gansean, Special Secretary of SHRI RABI RAY: Mr. Chairman. this Commerce of Comr,lerce at the meeting of debate IS regarding the sovereignty of the the negotiating Committee under the country. This question IS pertaining to the Uruguay Round. future of the country. I am IOcontend aganist the argument given by then Government 2- [ Translation] 3 years back in an International Forum. What had been said in 1989 was appropriate This background pappr was prepared for the country. Sir, through you I would like and distributed among all the members of to make my point clear to the common Parliament in the 1989. If: this paper, the public of this country that the conspiracy to former secretClry to MinlstiY of commerce which i am referring is proved by this has made a contrary argument. At present argument. Shri Ganesan is not in the Government and he is spokesman of the Government for the [English] GATT issue. 4e has said: [English] "At the outset. In';iu_)\tould like to POlOt SHRI PAWAN KUMAR BANSAL: Sir. I out that the scope of this agenda item is want to mention one thing. A citizen of thiS limited to "trade-related intellectual property country. any informed person ot otherwise rights". For the reasons explained in the has a right to write on any subject malter. To parer. hdia i~ of the view that it~s only the call somebody who is not ellen a member of rbstrictive a:.d anti-competitive practices of the Congress Party as the ;j',010g,-,e 0i the the owners of intellectual property rights that 87 DiScussion Unde{ MARCH 30,1994 . Rule 193 88

[Sh. Rabi Ray) between industrialised and developing countries and w~1 be contrary to the efforts c3n be considered to be trade-related being made in other intemational fora to because they alone dis?ort or impede bridge this gap and to strengthen the intemational trade. However, other aspects developmental process of develpping of intellectual property rights have been countries. " examined· in the paper sinces they have been raised in the various submission made He further states: to the Negotiating Group and in order to place them in the wider developmental and "The question of product versus process technological context toitch they properly patent had been the subject of much debate. belong." nil the mid 1960s and 1970s, the patent laws of a number of industrialised countries He future states: allowed only process patent in the food, pharmaceutical and chemical sectors. Th~ "In the crucial phase of their industrial present technological strength of some of development, many of the industrialised those countries in these sectors is attributed contries of today had either "no patenf or at least in part to their following only the weak patent standards in vital sectors in process patent system for several decades. order to strengthen their own industrial and The development ofthe pharmaceutical and technological capabilities. It was only after chemical industries in some of the highly they attained sufficient strength in these industrialised countries of today owes its areas that they considered making changes origin to their deliberately adopting a legal in their patent system. The patent system is framework that excluded or limited patent an instrument of national economic policy protection for durgs and chemicals." for the industrialisation and technological advancement ot a country. In the case of [ Translation] developing countries, it is of foremost importance that the patent system does not Mr. Chairman, Sir, it is a document of block or hinder the building up of their pwn 1989. Bansalji feels proud that India has its industrial and technological capabilities." say in Intemational Forum. At that time the point of view of India expresses at an He further states: Intemational Froum shows that it was not our own opinion. This house has to decide "It is therefore imperative that the the matter. The Minister of Commerce must protection of the monopolistic rights of the be knowing about the officers who were patent owner is adequately balanced by the briefed on this subject. It must have been socio-economic and technological needs of briefed to the then Minister of Commerce. the country. An exclusive and undiluted What happened to the Govemment in 1989 focus on the monopolistic rights of the patent and 1994? Today, it is our unanimous opinion owner without any regard or concem for his that the future of our country is bleak. obligations or the possible adverse implications of such protection for the host East India Company came in India. In country will be particularly detrimental to the comparison to East India Company, develoPmental efforts of the developing institutions like World eank Company and countries. Such focus will only widen the gap International Monetary· Fund ... 89 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 90

(interruptions). .. East India Company w.as practices like cheating customers bribing forced to quit India by Mahatfna Gandhi. 4t political officials" and using call. gir1s for present there is no Viceroy or British Army business purpose. Two separate 1976 and even then it seems that we have again surveys of corporate executives by b~ome slaves We have forgotten those companies' themselves found that a majority slogans which in~pired us to confine business managers • feel pressured to ourselves to indigenous products and that compromise personal ethics to achieve feeling is gradually vanishing. I would like to corporat~ goals~ including selling "off- know whether the Parliament will remain a standard and possibly dangerous items'. mute spectator in such a situation. I would like to know from my colleagues, like Shri ~ [Translation] Banasalji, the rea¥>ns for this change in the attitude of the Government. This is the opinion of intellect""al, leamed and impartial people of America about its Today I was listening the speech of the corporate sector, and our Finance Minister Finance Mnister. He praised the multinational is prasiing and inviting them in this country. corporations and told us that these are I would like to present his version before you being invited here for the reasons that they that multilateralism is better because possess better technology. I do not know bilateralism is more dangerous. He has said whll has happened to him. Most of the that our opinion about super 301 and Special multinational corporations belong to 301 have changed due to GATT conferenes America. At present Finance Minister is not and pressure from U.S. Government. here, he has gone outside th!3 house after America'sefforts have not been futile. Those praising and inviting multinational who knew about the political and economic corporations. I would like to read out opinion system of US know it very that corporate of American newspapers, intellectuals and sector wields much influence on the polity of learned people about the characterisation of that country: America, pressurised India. In these multinational corporation: 1989 the Government of India mentioned that under this trade policy, all the items and [English] patents were considered as intellectual property. My points is that we will not be able ·'n 1979, the US Department of justice to understand thEfeonspriacy behind GATT, found that of the 582 US corporate unless we psycho-analise the pressure that organisations more than 60 per cent were is being exertion us by the Unite States. I guilty of at least one illegal action, including would like to reproduce the version of evasion of taxes, unfair labour,practices, America's Pharmacetical Manufacturers dangerous wor1dng conditions, price fixing Association in this regard which says: pollution and illegal kickbacks. The Harvard Business Review; a publication of the (English] Harvard Graduate School of Business Administration found that corporate ethical "Special 301 Actions during 10 years practices, poor in 1961 were even wors in GATT Implementation period urged by 1976 and has only been falling continuously. Pharmaceutical Manufactures Association President, Gerald Mossinghoff in testimony The Hardvard Business Review survey of February 22 before the House ways and of industrial leaders showed common means Trade Subcommittee. Pressure 91 Discussion Under MARCH 30, 1994 Rule 193 92 should be kept on patent-infring countries, practices, policies and acts have continued Mossingoff argued, in order to ensure that to resist efforts to improve their respective they continue progress toward improving intellectual property regimes, as to merit \. intellectual property laws during the ten designation as priority foreign countries. years grace period that developing countries will have under the Uruguay Round of the [ Translation] General Agreement on Traffic and Trade to implement the Trade-related Aspects of People consider the Finance Minister Intellectual Property (TRIPs) Provision. as a learned man. You were not here in the, morning when he told that bilateralism is Citing improvements in intellectual better. As I have already mentioned it properly protection around the world which apprises if the big leaders of American have been achieved by the US applying multinational corporation have ordained their pressure under the prOVision of section 301 trade representatives to have India in their of the 1974 trade la~, Mossingoff argued pockets. As you all know that super 301 'has that it is necessary to find methods to maintain already been imposed on India for stopping even enhance the effectivess of section and the supply of Crayogenic engines. The whole Special 301 during the ten years delay in country knows that America prohibited implementation period of GATT while PMA Russia to supply its technology, supports US implementation of the Uruguay Round agreement, it is on the understanding The point which have made is that while that the US will vigorously pursue other speaking on bilateralism and multilateralism, efforts to improve intellectual property the Finance Minister has deliberately mislead protection in patent infringing countries the House and the country by stating that du~ing the unduly long discriminatory since we have accepted GATT, there will be implementation period for pharmaceutical no need to impose Super -301 on us anymore, protection contained in the TRIPs text, In fact US has declared that they would Mossingoff explained. impose it aganist Japan whereas in case of hadia a threat to this effect had already once Under Section 301 the US Trade been given, It is correct that we were given Representative annually identifies countries benefit of doubt and now Super-301 will not with inadequate intellectual property be imposed aganist us for their own petty protections which may become subject to interests. But as we all know America is Special 301 investigations. Nations on the America and it can take recourse to any Priority Foreign Countries list become the measure in its own interests. But our subject of targeted negotiations aimed at Government never work in the interest of improving their laws, and if negotiation do our country. The pr061em with our not achieve satisfactory result, the US may Government is that they are more concerned inpose trade sanctions. The USTR also about the interest of America. So I would like issue Priority Watch list of countries with to say that the mention of multilateralism lesser violations. and bilateralism by the Finance Minister is baseless. America is in a mood of retaliation In a February 18 letter to US Trade aganist India and even if the Indian Representative Mickey Kantor, Mossingoff Government lies prostrate at their feet as a identified Argentina. Brazil,lndia and Turkey gesture of complete surrender. it can not as countries thaI are so egregious in their deviate them from theIr present policy. 93 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 94

I would like to say something about the contains a letter written by the author himself impact of multinational companies on the to Shri Camdessus, the Chairman of IMF, at countries of Third World where these have the time of his resignation from IMF after been set up. Its ootcome were starvation serving for long eleven years. This letter is and monopoly. I am rai"ing this issue ,to quite lengthy but I would like to read out few bring its repercussions in the notice of our sentences which reveal the works that are Members of Pariament. Fifteen-sixteen being done by multinational companies and years ago, there was democratic Intemational Monetary Fund in the Third Govemment in Chile and Shri Alinde had World Countries ... (Interruptions) .. taken over as elected President. Shri Alinde was a renouned revolutionary CIA? Pepsi- [English] cola and several other multinational companies hatched a conspiracy against The name of the book is 'Enough is him. In his manifesto, Shri Alinde promised enough It is written by Mr. Davison L. for nationalisation of copper mines of the Budhoo. I am reading an extract of a letter country. In the wake of this promise America written by Mr. Divison L. Budhoo, to Mr. thought how it could take place in presence Camdessus, Managing Director, of American multinational companies in Int&rnational Monetary Fund, which as Chile. Thus before it could be implemented follows: Shri Alinde was murdered in Presidental palace. In India alsoa multinational company Today I resigned from the staff of the was responsible for Bhopal gas tragedy. Its International Monetary Fund after over managing director is safe in US under the twelve years, and after 1000 days of official protection of Bill Clinton. Chief Judicial Fund work in the field, hawking your medicine Magistrate of Bhopal has orded to produce and your bag of tricks to governments and him before the Court. Indian Law also to peoples in Latin America and carribbean demands for presentation of Anderson, the and Africa. To me resignation is. apriceless Chairman of Union Carbide before the Court. liberation, for with it I have taken the first big It has bee told that CBI is IJlvestigating into step to that place where I may hope to wash the matter. I would like to know whether CBI my hands of what in my mind's eye is the will be able to investigate into it. Union blood of millions of poor and starving peoples. Carbide already has killed and maimed Mr. Camdessus, the blood is so much, you thousands of people. In spite of all this, know, it runs in rivers. It dries up too; it cakes Finance Minister is repeatedly telling us that over me; sometimes I feel that there is not multinational companies are working in enough soap in the whole world to cleanse several fields in our cOlJrtrv. But I would lik-e me from the things th3t I did do in your name to say that multinational companies have and in the names of your predecessors, and ruined the countries where they were located under your official seal. but the Govemment of India is taking them for harbinger of prosperity. [ Translation)

Mr. Chairman, Sir, for the information I have read it out so that hon. members of the hon. Members I would like to tell one could know that IMF, World Bank, Asian more thing. There is a book titled 'Enough Development Bank and GATT etc. are the is enough' written by Shri Daviske L. Budo, puppet organisations with their strings in the who belong to the third world. In this Book hands of G-7 countries and through them 95 Discussion Under MARCH 30, 1994 Rule 193 96

(Sh. Rabi Ray] agreement shauld:

they are exploiting the countries of the Third reform agricultural trade, which is World like India with the sole intention to ruin inadequately covered by GATT them ultimately. We are feellinSlyictims to rules and is distorted by frade their evil intentions due to our own barriers, subsidies, and supports. Govemment. We need fundamental agricultural reform, he said. Mr. Chairman, Sir, today while coming to the Parliament, I have read one more expand market access, by sharply sensational ne~ published in 'Hindu' in reducing tariffs. which vice-president of Bar council has expr~ his doubUhatthen America.n people curb trade distorting government in legal profeSsions will open their offICeS in subsidies. this country ~nd h~ has demanded from the Government not to take all the foreign things ensUfe that its rules apply to as best under the policy of globalisation, I qeveloping countries as well. woul<\ like to know wheloer the Indian products and human beings are inferior to 'develop fair rules for the new trading anyone. Why our inte!lectual property is areas not now including in GATT- being smashed and integrated. We should services, investment and be cautions of the powers active behind this intellectual property, and conspiracy. Only erudite knowledQe on this subject will not work instead we should contain an effective means for develop our own convictions in this regard. resolving trade disputes.

Earlier Mr. Bush used to say about it, Mr. Bush called on US trading partners Now Mr. Clinton says it. We should first to work toward moving the GATT talks understand their mentality ad their forward during the meetings of the philosophy, only then we will be able to Organisation for Economic Co-operation and , finally understand the GATT treaty. Development next week in Paris and during Yesterday one hon'ble Member told us how the economic summit of the seven industrial the President Bush used to manoeure things nations Houston in July." to control the world and there was no difference between Clinton and Bush. Shri ( Transiationj Bush had said in a Statement: It was my opinion that it is a real thing, (English] we should understand it and study all aspects that the way the GATT treaty is going to be "Mr. Bush, during a ceremony for world signed in this country, it is going to land us trade week, said concluding the Uruguay in deep trouble. We would not be able to Round of talks underthe General Agreement understand the main thing if we neglect this on Tariffs and Trade was his top trade aspect as how our culture is being invaded ~ riomy for this year. anrl the Government has become a silent spectator. In a reply to my question it.had Mr. Bush said a successful GATT been said: 97 DIscussion Under CHAITRA 9, 1916 (SAKA) Rule 193 ~ /Eng/lsh] Times' of London. At present, the Government is not Saying it specifically but "(a) whether the Financial Times of it is possible that they can collaborate in London has entered into collaboration with future. I would like to warn you that it is the Anand Bazar group of papers: against the Articles of the constitution. Our newspapers reflect ~rculure and thus, the (b) If so, the details thereof; foreign news papers are not meant for India.

(c) Whether joint venture company has THE MINJSTER OF STATE IN THE been incorporated in India by these two MINISTRY OF STEEL(SHRI MOHAN OEV): newspapers; Shri Chitta Basu has burnt one Iakh copies of Anand Bazar Patrika. (d) if so, whether this company has sought the permission oftheGovemmentto [English) start their publications soon;" SHRI CHITTA BASU (Barasat): I have ' ...... (lnterruptions) It is being done the right thing. speculated in the COWItry as to whether the branches offoreign news-papers wiU function [ TransIaIionl in India. Our intellectuals are objecting to it and complaining tha&:the Govemment is not SHRIRABIRAY: The Parliament should coming out with a classifications as to what take a decisioo today. Are we going tofollow is being done. It was stated in reply to my the beaten path and just keep on delivering question: speeches while we all know as to what the hon'ble Minister is going to do. We should [English) be told what is proposed to be done by the Central Government in the ,Ministerial "A proposal for setting up of a joint meeting which is going to be held in Morocco venture company, "The Financial Times of on 15th April. So far, the attitude of the India Private Umited" between AnandBazar Gov.eroment shows that despite the Patrlka Umited and the FmanciaJ Times objections raised by the Indian people it is Limited of UJ( has been received by the going topledge the sovereignty ofourcountry Government for publication of a financial by over-looking our legacy of Indepence, daily. Permission for setting up so such a self-reliance and employment. company has not so far been granted by the Government. • 15.41 hrs. [ Translation) [MR. SPEAKER in the Chaill The Government is not giving a straight answer. The policy in 1995,atthetimewhen I would like. to tell the Members of the PanditJawaharLaI Ji was the Prime Minister, Congres$ Party that before taking any waS not to allow foreign news-papers in decision we should keep the future of our India. I want that the Government should cOuntry and the values of the constituIion in stick to that policy but Anand Bazar Patrika view t,nd act on the basis of a national would like to coHaborate with 'The Financial consensus. 99 Discussion Under MARCH 30,1994 Rule 193 100

ISh. Rabi Ray] the House through you. The House should be unanimous on it and GATT which would Mr. Speaker Sir, I would like to ask you tum into TWO may consider not to amend it the basis on which we are gOing to take the when the Parliament of India has rejected it. decision. The discussion on it will end today evening. No wise person, who loves his Mr. Speaker, Sir, I demand with aU my nation will ever say that GATT treaty and the heart that this agreement should not be final Act embodying the results ofthe Uruguay Signed. I thank y?~ for allowing me to speak. Round of muHilateral Trade Negotiations ... are in the interest of the country. When [English) these are not in favour of the country, then, why should the Government sign it. They MR. SPEAKER: I think the time available should not do it. But we are unable to solve for this discussion is limited and many point this mystery that why the Government is have been made. If we can take a little less committed to support it. We have a time, it will be helpful. This is applicable to . democratic set up in the country. We would all and not so Shri Bansal only. not be abie to satisfy the queries of our people outside the Parliament. I do not SHRI PAWAN KUMAR BANSAL: I will understand as to what we are going to do. respect your observation. But kindly do not When we visit our co"c:;tituencies what put thQ patent on this case. message we will take from the Parliament? So my suggestion is to not sign it at all. But MR. SPEAKER: If you have any everybody knows that it will be signed by machanism to extend the time, then it is aU over-looking our discussion. right.

The Govemment should tell us what ( Interruptions) amendments are proposed to be made in the Patent Law of 1970? We know that the SHRI PAWAN KUMAR BANSAL: Mr. Government is committed to amend it. The Speaker, Sir, the debate which should have, Government has no logic what so ever to in fact, focussed on the need to evolve a say that the Patent Law of 1970 is against strategy for deriving the maximum benefit the nation. The goverment would mqve a from and to minimise any unfavourable motion before us to amend it. impact of the Final Act. Embodying the resolts of the Uruguay Round of Multilateral would urge upon the Congress Negotiation has, in fact, been reduced to Members that they should unanimously rhetoric against the Government policies. refuse to ac~ept any "3mendment in the Alleging that the country's economic Patent Law of 1970. The world will get the sovereignty has been surrendered, a message that the Patent Law of 1970 is in preposterous parallel has been sought to be the National interest and in the interest ofthe drawn between the situation that prevailed' people. It is looking after our intellectual In the country several centuries back property rights. and our pharmaceutical forgetting that at that time we lacked the industries, we will not amend it. If our strength that the country has today, the Parliament refuses to do it then may be 117 strength that has been build up during the countries of GAn would also foHow the suit. long-drawn freedom movement and I am putting thus concrete suggestlo~ before consolidated during the last 47 years. 101 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 102

In 1986 the Uruguay Round of talks wide gap between the subsidy that we began. Since then, we have had four provide to our farmers today and what we Governments herE:Hwo of the Congress and can really provide to them in view of the two of the non-Congress. But there has permissible limit of the GAn, any amount of been element of continuity in our approach waiver of revenue would not just make any to the talks. Today Shri Chandra Shekharji difference whatever in the situation. As far or the fellow travellers of Shri V.P. Singhji as the loans are concerned, my humble may not own up that. But we, on our part, do submission is that these do not come within it because we are r:onvinced that that was the domain .of the term subsidy. the right path for the country to follow. Shri Rabi Rayji referred to an article of Shri The clause relating to minimum market Genesan of i 989 and also to his recent access commitment has also been article to point our, to allege some sort of misinterpreted to simulate a fear in the conspiracy in the final outcome of the minds of the people that our country would Uruguay Round. be flooded with foreign goods. Here there is again a major fallacy in the approach adopted With a" humility I would in fact like to by our friends on the other side because say that the views expressed by Sh,-i such a provision would not force the Ganeshan in 1989 go to prove that our Goverrlment to go in for any sort of negotiating team did its best to derive the compul:;ory impol1. Such averments in faci maximum advantage for the country. betray, I whould say, the lack of proper Obviously we were at a platform when 177 appreciation of the Final Act. other countries were trying to derive some little advantage and in a situation as that, the On the PDS I would seek your final outcome could not have been to the indulgence to just reterla what Shri Jaswant total "Idvantage of anyone party. Singh said yesterday quoting from the report Understandably it is not open to member- or the departmentally related Committee on c;ountries today to pick and choose certain Commerce. I quote: "The Committee is ot parts of the Final Act. the view that a clear understanding must be obtained from the GAn Secretariat that our In this perspective I would like to say PDS will not be affected in any way presently that the cacophony of protests raised by the or in future." Members of the opposition in fact lead one to believe that more than altruistic purposes, This is precisp.1y what has been done. it is political considerations which has Elaborate references were made to by Shri. prompted such actions. A tear is generated Manishankar the footnotes attached to the in the minds of the farmers that GA n would relevant provisions in the Final Act to say spell disaster for them. that the existing that under no circumstances would our PDS subsidies to agriculture would be withdrawn suffer. In any case the subsidy that goes on or slashed. This is a travesty of truth. I did the PDS, we must all appreciate, is not an want to referto some salient features of this. agricultural subsidy, but a subsidy to the But in view or your observation, I would like consumer. I feel when we refer to the various to skip over those except to say that the provisions in the GA n that an opportunity reference made by Shr; Jaswant Singh is being of Ie red to us today to make our yesterday about the land revenue, about products competitive in the world market certain loans etc. Is not I'e"'" apt. 'Given the and enhance ourexports. Prices will become 103 Discussion Under MARCH 30, 1994 Rule 193 104 the best incentive for our farmers. believe that the effect of GAn can be shattering on our economy. It would not In that event, a little more that a farmer realty be the situation and it would not reflect may have to pay. for the new variety of the ultimate gains that we are likely to get seeds, will significance iotally. The shrill from this Agreement. I agree with Mr. Rabi voices that we hear about the farmers losing Ray that we will have to amend our Patents their right to retain part of their harvest for Act of 1970. But when he referred to the subsequent corps is totally misplaced. I replies given by the Govemment in 1989 wish to referto this because a lot of confusion and 1985 to say that there was no proposal was sought to be createn today morning. to ..mend the Patents Act,l find no fault with But I would only like to say one sentence on these because that was the position at that this that I only wish that we· appreciate the time and we could not visualize many years distinction between the certified seeds and back as to what would have been the final the corp. It has been made amply clear by outcome of the negotiations and what sort of the Govemment that the traditional right or amendments we would have to make in ou; ourfarmers to preserve part of their harvest Act. for subsequent crops, to exchange the same or to sell that, would just not be impeded. The world view today is that we have This right would not be tampered with at all. practically no patent law, particularly in the fields of foods, pharmaceuticals and Shri Rabi Ray like many other hon. chemicals. Sir, it is common knowledge that Members was referring to the clause relating hundreds and crores of dollars go into the to sui generis and was expressing an opinion making of one new molecule. And Sir, a that there would be no alternative for our period of 20 years is provided for the patent's country but to go for the 1991 version ofthe duration, there is nothing harsh on our people UPOV Convention. If you go through the because it takes more than 10 to 12 years Final Act, you will find that wnerever there is for a molecule to travel from the laboratory an intention to invoke any of the intemational to the chemist's shop. We know that there treaties, a specifiC mention to three such are provisions and there is scope forus to go treaties has been made. In this case, there in for compulsory licensing on the merits of is no mention whatsoever to UPOV and it will a particular case and even to go in for non be farteched to say today that our sui generis commercial production of various drugs for system will have to oIlowthe 1991 version. free distribution in our hospitals. I agree that it has to be ar. effective one to strike a balance between the plant breeders' Sir, by opposing these provisions, I fail. right and the same time to preserve the to understand as to what they really want to legitimate rights or the farmers and the convey to the world. researchers. But if a situation like that arises, if a charge is made, then only the 16.00 hrs questionwouldariseandthenonly,adecision would have to be arrived at, as to whether Do we want to tell them that though we the law is effective or not. Taday, to take up boast of the best brains, talents and human that issue, I would say with all humility, would resources yet we oppose the right of others only create doubts in the minds of people. to see;.. recognition and reward for theli As was said earlier, it would tend to original research? Do we only want to tell demoralise our people if we lead them·to the world that we advocate piracy in the 10S DiscuSsion Under CHAITRA 9, 1916 (SAKA) Rule 193 106

field? Sir, I was started yesterday to hear scenario in the world and to see as to what Shri Jaswant Singh. He referred to the responses we have got to evolve to meet a . question of patents by saying that this is sit4ation as that. Raising, doubts without blatant and brazen instrusion in our sovereign . basis will only have the portents of retarding economic field. With utmost respect I would our progress Viewing the GA n in its say that-the Agreement on TRIPs would totality, it places us in a position of more apply to all those inventions, to all those new gains than losses far from impinging on our drugs for which application IS made after the sovereignty. It offe;s us new opportunities Agreement comes into force. It means that in the fields of textiles, seeds and bie- for ten years the practices that we follow technologhy. With reduced tariffs, we can today, we can continue with that. enhance our exports of bulk drugs and chemicals. Sir, I would not touch any other sector ~hough I did wish to because of the time In today's world with hitherto unknown Naming given by you. But, I must, with all rate of advancement 'in science and humility, dispute the claim of Opposition that technology and competing economic )y becoming a party to the new Agreements interests, we cannot hope for benefits from or even the proposed World Trade harping upon irrelevant theories. We must Organisation, there has been any respond to the changing realities of the compromise with national interest, any worid. We must not remair ensconced in a compromise with to nation's sovereignty, fragile shell of fear from competition. We economic or otherwise. It was sought to be can derive advantage only from our made out yesterday and today during the economic strength. That we must very well debate that the Constitution of India will be understand. If we wish to stand up firmly and impaired thereby. Such opinion, with proudly in the comity of nations. we have to uttermost respect I would say, is unfounded meet new challenges and seize new and not called for. opportunities thrown up by the GAn. Sir, the present technological gap between Sir, Article 25;; of the Constitution of (Interruptions) India would continue to be interpreted as it has been during the last forty years. The MR. SPEAKER: Mr. Bansal, we are States will lose no Constitutional right much expected to complete· the discussion by less that under Article 162 because of the 6.00 p.m. Uruguay Round. I do not know on baSis a theory is propounded that the Govemment SHRI PAWAN KUMAR BANSAL: May of India will impair the ability or the capacity I just say the last sentence? oi the States to preserve. to safeguard the interests of the farmers and that of the MR. SPEAKffi: Yes. workers such. The hon. Ministerfor Finance referred at in length to this aspect and I SHRI PAWANKUMAR BANSAL: Thank would not like to dwell on that again but all you very much. that I would like is to seek your indulgence to submit that our obsession to criticise the MR. SPEAKER: I really thank you Mr. Dunkel Draft, the GATT and Government Bansal. has in fact deflected us from the need to ponder over the emerging economic 107 Statement by Ministers MARCH 30,1994 Discussion Under Rule 193 108

16.05 hrs is c~ very serious matter .. It is a questiO'n of the security of the country. STATEMENT BY MINISTERS [ Translation] (i) Alleged Qeal with LTIE MR SPEAKER:- Since you were nN present in the House and thus, have not THE MINISTER OF HOME AFFAIRS heard what I have said, than the House is not (SHRI S.B. CHAVAN): Yesterday, responsible for that. They have already references were made in this House of an been asked to give a statement. article entitled "Playing with the Tigers" published in the SUNDAY magazine of 27th [English] March, 1994. I have gone through this write up, which was contradicted by Govemment SHRI C. SREENIVASAN (Dingigul): on 28th March, 1994. Briefly, the story would like to know from the hon. Home alleges that R&AW had established contact Minister the position about the ban on the with the LTIE to secure some sort of LTIE. What about the ban orders on the LTIE? guarantee for the Prime Minister's security during his recent visit to the United Kingdom THE MINISTER OF HOME AFFAIRS and that some kind of deal was struck wii,l (SHRI S·.B. CHAVAN): If the hon. Member the L TIE that the ban on its activities will be goes ~hrough the statement, he would L·.~ lifted by the Government of India. able to understand the meaning of the statement. My only problem is that there is I would like to categorically state that a tribunal which has been constituted, which the said article is entirely baseless and is going took into the matterwhethersufficient totally mischievous. No deal has been material is there at the disposal of the struck with LTIE. The unlawful activities of Government for declaring an organisation the LTIE continue to be banned. There is as unlawful. It all depends on the meterial that we get from the State Government. just no question of Govt. lifting the on any ( Interruptions) organisation including the L TIE, whose activities continue to be unlawful. MR. SPEAKER: This is not done in this ( Interruption) House. We do not allow any clarifications to be sought. l Translation] ( Interruptions)

PROF. PREM DHUMAL (Hamirpur). Mh. SI-'EAK:::R: Please take up you, Mr. Speaker, Sir, a very tragic incident has seat. taken place in Srinagar. The Government should be directed, before the House is 16.00 hrs adjured for the day, to teli something about DISCUSSION UNDER RULE 193 it. (Interruptions) Final Act Embodying the results of [English] the Uruguay Round of Multilateral Trade Negotions Contd. SHRI CHETAN P.S. CHAUHAN (Amroha): A Major General and some MR. S~EAKER: Now Shrimati Malini senior officers have been k:!lelJ yesterday, it Bhattacharjee may speak. 109 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 110

I would like to let you know that the CPM who is speaking. He can present the same was given 45 minute's tirle and the CMP point in a way so as to make it sound like a has consumed already 58. What is being new point. given to the members of the CPM is something more than what was due to them. MR. SPEAKER: Nitish Kumar ji, I am Out of 12 hours, time is allotted to the parties speaking for you. only. Then you will ask for on the basis of the proportion oftheir number some time and I will not be able to allow, in the House and according to that formula because, you speak on behalf of both the you could have got 45 minutes. The Members sides and it is not possible. You want more have spoken for 50 minutes. time and still want to stick to rules, both there things cannot go hand in hand. (Interruptions)

MR. SPEAKER: Are you ready to sit SHRI NITISH KUMAR: We are the later in the night? I can appreciate your people who complete the quorum. concem for speaking on this issue. But we would expect you to speak on the subject MR. SPEAKER: It is a good thing. and not to repeat the points which ha'v'e already been made. By repeating the points we are not gaining anything at all. If there [Englishj are any new points you are welcome to make them. But if there are no new points SHRIMATI MALINI BHATTACHARYA please do not repeat the old ones. (Jadavpur): Mr. Speaker, Sir, I will start by thanking the two Ministers who have opened SHRI PAWAN KUMAR BANSAL their mouth tOday, for ')pening their mouth, (Chandigarh): On one subject the points although it comes at a very late stage need to be repeated. Because initial signatures to the Final Act were put on the 15th of December. Afterthat MR. SPEAKER: That is not the rule. Jal"'uary has gone; February has gone. We Then you will require unlimited time. have crossed the ides of March and now we are moving towards All Fools Day. We should take care that 15th April does not turn SHRI PAWAN KUMAR BANSAL: The out to be All Fools Day for India. The total time should be fairly divided to every Government has not yet clarified of its ow;~ Member, according to the Party time. I whether even the small advantages which suppose, it can be done. they had demanded in paper given by the MR. SPEAKER: Your Party has got Commerce Ministry have been gained. We more time than what was allotted. If you feel that there is space for struggle; there is want calculations, I can show them. Do not pace forfirmness even at this final stage and feel hurt about it. If there were any new we would like a message to go from points, I would have allowed you. Parliament to the nation that there is still resolve in the Government to at least to lift one little finger to protect the sovereignty of [ Translation] the nation.

SHRI NITISH I{LJMJI:"l (Barh): Mr. The Govemme.-:t has never spoken its Speaker, Sir, It all depends on lIle pe~~:1 mind on this issue expect when it has been 111 Discussion Under MARCH 30, 1994 Rule 193 112

[Smt. Malini Bhattacharya) expressed by so many people. But all that we are having from the Government side pressurised. I feel highly complimented that are these DAVP booklets in green and the hon. Finance Minister in his red bashing yellow cover just like the Dunkel xrayed that expedition has thought it fit to say that it is was published immediately before the the Communists or the Stalinists who have Assembly election in the four States. . It been leading the oppo~ition against this se;:ffiS that the DAVP booklets which contain accord. But I cannot claim so much for my misinformation and no information are a party or for the ommunists because we find kind of an election exercise. There is no that even apart from the Left Opposition iq serious assessment on the part of the Parliament. other Opposition Parties are Government. This is what we protest against. also against it. Also a very strong opinion outside Parliament has development against For a moment, let us look at the whole the GATT accord. It has come from question from the other end. Instead of economists; it has come from jurists, persuading us, instead of trying to persuade scientists, technologists w;th no ideological the nation about the merits of this A«cord, axe to grind. The opposition against is the Government should try to persuade accord has not only come from the people those with whom it is sitting across the table from this country but it has come from the and if the small advantages which have people in South Korea, Japan, Mexico on been proposed in the paper ofthe Commerce whom as far as I know, the influence of the and Industry Ministry are not gained, let us Communists is very small. TheCSIR journal, not give the final signature of approval to the as far as I know, is not a joarnal run by thp. Accord. No one can chuck us out of the '::;ommunists. Yet in its Special issue of GATT. When the c(" ,ntries belonging to the April, 1993, it has expressed seve,s European Community were bargaining with reservation about he clauses of IPA. It has the Uf A and in consequence the conclusion described those are an attempt· at of the. discussion was delayed, were they recolonisation. The Standing Committee on chucked out? Then. why should we be Commerce has given its verdict against this chucked out? Dunkel Draft. The Finance Minister has given a kind I am quoting the views of another of a philosophical background today to this Committee also whICh says: "This Committee GATT Accord. This philosophical feels that if the Dunkel proposals relating to background is very familiar to us. In fact, it drug indu:;try a're accepted as they are at comes down from 18th century politica! present. this could advc:-sely affect the ecvnomy. The Stale of nature versus social indigenous drug industry." This is from the contract argument-that is what he has been Report of the Committee on Chemicals and giving. In a contract. unless both the parties Fertilizers of which Shn Snballav Panigr?hl gain something, there is no sense in a was the very able Chairman. Of course, contract. However. just as in the 18th he has been tryIng to live it down very century the concept of social contract was desperately since that time. What we want heavily biased on behalf of a certain class. to know is whether the Final Act has achieved similarly in Shri Manmohan Singh's concept anything that changes the situation and can of social contract also we find that the relieve the apprehellsions ,-vhich have been contract is heavily biased on one side. 113 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 114

The Final Act is supposed to ofter to which India's gains will be delayed. In opportunities for us to become a major fact, this remains in the Final Act in spite of player in world trade. It is supposed that this whatever efforts have been made by us, but Accord would give a boost to our exports apart from this factor backloading, is it not particularly the agricultural exports. Now, I true that products which have not come would like to ask one question. There is a under the MFA earlier are now being added study made by the World Bank - OECD. to it? I would ike to be enlightened on this Here, we are told that the global income in pOint. In this text, there is a list covered by the next eight years, as a result ofthe trade the MFA. Item numbers 6204.13, 6204.33 agreement, would shoot up to $ 213 billion. and 6204.53 about unknitted synthetic fibre However, out of this increase, certain coun- whether these are with the MFA tries would have the lion's share. West surreptitiously, quite in very recent times. Europe would have $ 80 billion; the United This is a kind of straight of hand and if such States - $ 25 billion; Japan $ 20 billion; China additions are made, we suspect that we will $ 37 billion; South America only $ 8 billion not make any gains even after ten years. whereas the African countries would have a negative of $ 4 billion. hey would lose $ 4 billion. Shri Mani Shankar Aiyar in his brilliant speech where he made us much as he could India's share in this, according to this of a bad case spoke about the Aggregate study, is 4.6 billion dollars which is some- Measurement of Support (AMS). In fact he thing like Rs. 15,000 crores. Shri Manmohan tried to make out as if with aggregate Singhji can enlighten us, Shri Pranab Babu measurement support reduction on product can enlighten us: Will not this increase specific subsidy and non-product specific happen in an way even if we do not enter subsidy are no longer going to be there. It GAn accord, if the present growth rate in is not that. The AMS does not xempt these export continues? According to the claims subsidies but includes these calculations in of the Finance Ministry, his growth rate in aggregation. He thinks, this is in our interest. the present year is 19 per cent. Now we this change is made for us. I would like to need only 2.5 per cent growth in order to submit that as a matter of fact, this is a gain what is being projected by this GA n double-edged weapon and the developed treaty. Is it for such a small gain that we are nations have much more to gain from this going to barter away our sovereignty that we aggregation as they have more subsidies are going to barter away our principles of and more variety of them. self-reliance? This is a very small question I would like to ask both the Finance Minister This point has been dealt with by Shri and Pranab Babu. Rupchand Pal and I would not lIke to go into MR. SPEAKER: I would like to remind the details. Again we have always disputed you that that is a repetition 'sovereignty is the Government's claim that the Dunkel bartered away' is a repetition. Draft will have no effect on food subsidy. Shri Aiyar obviously had some qualms abiut SHRIMATI MALIN I BHATTACHAIRYA: this unlike the hon. Finance Ministerbecause The report that I reftered to, I hope, is not a he was visibly relieved when he found that in repetition. the Final Act, some modification has been made to the draft in a footnote. Look at the Multi-fibre Agreement. Even apart from the factor of back grounding due In fact there are two footnotes and Shri 115 Discussion Unoer MARCH 30, 1994 Rule 193 116

ISmt. Malini Bhattacharya] matter of fact. we find that the Government has gone aheaa of the Final Act by bringing Mani Shanker Aiyar reffered to only one. He in new food policy in which this targeted referred to this footnote and said this shows approach is embodied. that we dQ feel concerned not only for the rurai poor but for the urb::',11 poor also. That The question that I want to ask is what is very gracious of Shri Mani Shanker Aiyar will be the criteria by which we will determine and or Mr r::>eter Sutherland and Mr. Dunkel. who the poor are. These criteria. if they are However, this is that part of the text which according to international standards. can be deals with exemption for Government quite arbitrary. India from being a poor stockholding for food subsidy. It has a nation is now moving upwards becoming a proviso. The first footnote has a proviso rich nation. Party in pushes power these are which has not been mentioned by Shri Aiyar. arbitrary criteria which can change and as What is that proviso? This proviso is that the a result of that large 3ections of people who Governrr,ent stockholding programmes lor really need this public distribution systems food security purpose will come under are likelv to be rlcpnved Here I am quotir.c: exemption as also programmes under which not from the writings of any Leftist economist; stocks of foodstuffs for food security I am quoting from !he 1994 paper written by purposes are acquired and released at Shri A.V.Ganeshan. This is not the 1989 admmistered prices provided that the paper; this is written in 1994. See what kind difference between the acquisition prices of apprehensions Shri Ganeshan is and the external reference price is accounted expressing ere. He is talking of the transfer for in the AMS. That difference then becomes of capital to the rural sector. I would quote a component in the clause for beside from Page 12. restnction of which AMS is the basis which means that when the extent of subsidy is Mr. G..;neshan says that there will be calculated this will be inclucied. So. in other growing pressure from the farmers to realize Nords. indirec!ly food s :bsidy is being higher prices forthell produce and to narrow brought withm the admIt 01 reduct::-.,l the gap between domestic and external commitment. prices Along with these price incentives and enhancement in production. the rise in The second footnote to which Shri Mani domestic prices WOUld. on the other hand. Shankar referred is the provision offoodstuffs put pressure on the Public Distribution at subsidised prices with the objective of S',Istem and accentuate :he problem offood meeting food reqUlremKls 01 urban and subsidy. Further more, the freedom to rural poor in developing countries on a export agricultural" fJroducts without regular basis at reasonable prices. This in restrictions will also need the shedding of fact embodies the so called targeted long-nurtured inhibitions against their approach to PDS. the efficacy of which has imports. What does this mean? Mr. been combatted by ec:onomists of such Ganesnan is :d!~lng about the so called eminence as Shri Amartya Sen. Food aid. export oriented economy. Earlier we had with so called nutritional objectives, are vf;ry produced for our consumption and then Jften based 0'1 crt'.:ma wl,,:..h d:.;·nve lar~e exported tht:: surplus. But ow the pattern of sections of the needy and push those who production itself will change. Even as the live along the poverty lines, who however domes:;'~ price:, ,_,f toodgrains will be nsin~ along the poverty lines downwards. As a we will be producing and exporting more and 117 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 118 more cash crops and importing foodgrains. MR. SPEAKER: Your party was given This is something that the other speakers 45 minutes. The hon. Member who spoke have also referred to. Growth in floriculture earlier consumed 58 minuets. Over and and horticulture is very good. But when that above that, you are given 20 minutes. There happens more and more, there would be the are a lot of other Member who want to pressure of compunction and it is likely that speak. these cash crops ill replace the food crops. If rice production is enhanced, it will be SHRI NIRMAL KANTI CHAITERJEE Basmati for export, rather than the ordinary (Dumdum): If you are considering my name varieties of rice to feed our own people. in your mind, I am ready to sacrifice my time Since, we have no control over international for her. pricing, if prices are increased and if stocks are held back, import dependent countries MR. SPEAKER: The time to your party will ultimately face famine. This has also is already over. It is to be decided among been reffered to by thers a{ld I will not go into yourselves as to who will be the speakers. it. I may mention the famine in Bengal in the Your name is not with meand noram I going 18-19th Century and we are also aware of to give any time to you. You want to sacrifice the famine faced by the Sub-Saharan something which you don't even have! countries in the recent past.we are told that technology import is essential. Knowledge SHRIMATi MALlNIBHATIACHARYA: gap is said to be the real gap between the The Department of Secologists and Chemical rich and poor countries and we are told that Examiners of the Ministry of Health which is just becausp. we are. underdeveloped situated in Culcutta has been producing countries, we need not have underdeveloped various antisera for forensic and medico- science. In fact, the Finance Minister has legal tests. They are also producing VDRl made a rather objectionable reference to antigens for diagnosing venereal diseases. second class and third class technologies in These products are certified by the WHO to our country. I do not deny that in some be of the highest quality. hey are earning areas technology is a first class technology. revenue and they are saving precious forex. We find that our pharmaceutical technology But suddenly by some mysterious order of is being run down as an imitative technology. the Government, 33 posts have been Finding a substitute. through indigenous scrapped of which 24 are technical posts. process for a particular product is, in fact, This will cause the Department to be closed not an imitative technology. It is a highly down and we will have to go in for imports. innovative technology. But this is being run down specifically to encourage the So, who are benefiting? It is the multinationals. multinationals who are benefiting at the cost of the indigenous research and development I would like to give just one example. at least in this case: Sir, what we are having is import or unsold finished goods rathe. MR. .SPEAKER: Madam, the time is than technology. The opening up of the sky over. I have given you more than 20 minutes. has shown this. In electronic media, our technological infrastructure is being used SHRIMATI MALINI BHA ITACHARYA: for readymade software. Doordarshan is Please Sir, allow me to speak for some more being flooded with such things. Similarly in time. pharmaceuticals the transitional corporations 119 Discussion Under MARCH 30, 1994 Rule 193 120

[Smt. Marini Bhattacharya) SHRIMAT! MALIN! BHATTACHARYA: In the limited time, you cannot go on quoting have, for a very long time been violating our the opinions expressed by people outside. laws regarding the working of the patents. You have to talk ori these things. producing a part of patented goods in countries where they are to be sold. Butthev SHRI SAIFUDDIN CHOWDHARY have been importing surreptitiously. (Katwa): Even the GATT Treaty has concluded, let her also conclude her speech! MR. SPEAKER: Please conclude now. I am sorry I have te say this thing but then I MR. SPEAKER: Well, I would go by Mr. have no other option. Saifuddin's advise.

SHRIMATI MALINI BHATTACHARYA: SHRIMATI MALINI BHATTACHARYA: Sir, if you do not give me time, I will sit down Sir, the Clause on Sanitary and Phytosanitary without completing my argument. Measures is anathervery controversial area. Sir, I am referring to the Text now. Just as MR. SPEAKER: I have no option. You visa restrictions in the case of personnel, do not have time. these Sanitary and Phytosanitary Measures are going to be like hurdles which may be put . SHRIMATI MALINI BHATTACHARYA: to the entry of our products in the developed I have an augment. countries and so far as ourside is concemec what we are having today is the import of MR. SPEAKER: You know that other wastes rather than technology, all kinds of also have their points to make. wastes. Chemical waste is being dumped in our country. Let this Clause on Sanitary and SHRIMATI MALINI BHATTACHARYA: Phytosanitary Measu(e~ be used against I am not taking the time of others. I have the dumping of these wastes. been waiting since yesterday. Sir, I will now make my last pOint which MR. SPEAKER: You may be waiting is on sui generis system. On the sui generis but your party had been given some time. system, there has been a Draft Bill. It is true You have taken double timf;l that was given that in the Preamble of this Draft Bill, there ~o your party. You shculd share the time is much talk of public interest, framers and oetween your Members. researchers, rights and reciprocal rights. But the questior· that I ask -because this is ~ SHRIMATI MALINI BHATTACHARYA: confidential document, I cannot go any If you allow me another ten minutes, I will be urther is this. Are there Clauses in this Bill satisfied. to enforce it? We find that there has been a debate about this sui generissystem. There MR. SPEAKER: No, It is not possible. has been an Article by Mr. Peter Sutherland Please conclude now. in The Times of India which talks of this flexibility in accepting a sui generis system We are expected to speak on this draft which will be our own, which will not refer to but we are speaking on everything which eitherlJPOV-780rtoUPOV-91. This is the can be discussed. How Gan we continue q",~stion It.at was being asked earlier also doing that? whether it would be an effective system of 121 DiscuS$ion Under CHAITRA 9,1916 (SAKA) Rule 193 122

sui generis. This is the whole question and react here. whether it will be considered effective by the In~emational community. SHRI CHANDRA JEET YADAV: But when a Minister speaks here, he speaks on MR. SPEAKER: But we will decide in behalf of the Government. He represents the Parliament later on. the Cabinet. (Interruptions)

SHRIMATI MALINI BHATIACHARYA: You may caution a Minister. Mr. Sutherland says that the international community;s not interested in across-the - MR. SPEAKER: Let me be very clear. fence sale. That is why the farmers will We do not want anybody to make any continue to sell their product across the statement in the House without applying his force. Are we to believe this?· mind or at the spur olthe moment and then act upon it. We will give them a chance to MR. SPEAKER: That point has already consider it and they can make considered statements. If the Minister says that it is the been covered. You please conclude. view of the Government, anyway, they will be bound by it. SHRI SAIFUDDIN CHOUDHURY: We have got the reply from the Agriculture SHRI CHANDRA JEET YADAV: Do Minister. If they do not accept it, we will you mean to say that he did not apply his come out of it. mind to it?

MR. SPEAKER: That is not the MR. SPEAKER: No more discussion Government's reply. on this may be continued, please. (Interruptions) SHRIMATI_MALINI BHATIACHARYA: There was a direction form th~ Chair. MR. SPEAKER: No more discussion. You can apply your own intepretation. MR. SPEAKER: That point was very much made clear at that time itself. SHRI BHOGENDRAJHA (Madhubani): How c~n you say that that the Minister SHRIMATI MALINI BI-!ATIACHARYA: speaks and we may apply our own Please let me complete. interpretation to it?

SHRI CHANDRA JEET YADAV SHRIMATI MALINI BHATIACHARYA: (Azamgarh): Sir, please do not say that this I want a clarification from l~e Chair. will not go on record. I- MR. SPEAKER: Already 58 minutes MR. SPEAKER: I am saying it because time is over. Please do not take more time .• it should go on record. Yo~ do not have to seal any clarifICations frem the Chair. Whatever interpretation you ( Interruptions) want to put on what is said on the floor of the house you are at liberty to do it and I am not MR. SPEAKER: I cautioned the hon. bound to give an explanation. Please Minister to consult his Cabinet and then conelude your speech. 123 Discussion Under MARCH 3D, 1994 Rule 193 124

SHRIMATI MALlNI8HATIACHARYA: SHRIMATI MALINI BHATIACHARYA: About the sale across the fence, it was said What is the method? I think if any law is that since the multinationals do not have any formulated, it should take into account the police in this country, they do not have the farmer's rights, researchers' rights, not the necessary personnel or the infrastructure right of international breeders and not the they will neverbe able to enforce through the rights of multin3tional breeders. Government. now, I think that we are entering into a treaty. If we are entering into a treaty MR. SPEAKER: Madam, you should we enter into it honestly. If we want to violate conclude now. Thank you very much. the treaty surreptitiously then, what is lne use of entering into the treaty at all? ·If SHRI ABDUL GHAFOOR (Gopalgan!): branded seeds are bought by the farmers, Please give me only one minute. I will make and then these are multiplied, then these are the shortest speech in Parliament since again sold across the fence, then that is Parliament was established. actually a violation of the treaty. MR. SPEAKER: I will give you time. I MR. SPEAKER: You have made very am sure it is going to be very interesting. good points. Now you must cooperate with me by just saying that you agree with the SHRI ABDUL GHAFOOR: Workers of others. the world, unite together, except those who are all combined together on this issue and SHRIMATI MALINI BHATIACHARYA: left here in India from our free world! now I want to see a clarification from you because the capitalists of the world unite. Here is Shri you said from the Chair, thaI this is an Manmohan .Singh, Shri Pranab Mukhe~ee. important matter. So, let us start on our journey, from here and where are we going? There is no way out. MR. SPEAKER: I expect you, Madam, Let someone be born in India like Mahatma to seek on the Final Act. Gandhi, Subhas Chandra Bose. All these things about which people are making SHRIMATI MALINI 8HAn ACHARYA: speeches here are no.-clear. Everybody's You said that they do not have a machinery mind is perplesed. What is this? What will do it unless the Government co-operates. be the Treaty and where will be the police? On the floor of the House the Government is We are all under pressure. making a categorical statement that it anybody has to be proceeded against, it has Now, after the demise of the Soviet to be through the Government. The GA TI Russia, let us go home now! Treaty does not have the police or the court SHRICHANDRAJEETYADAV: Donot or any machinery. Does it means hat they take his advice seriously. may sign the treaty and the same ourfarmers may be told surreptitiously by the SHRI ABDUL GHAFOOR: Let us Government that they could do anything. combine our political wisdom and fight the next elections. MR. SPEAKER: There is a method for that. All these things cannot go on like MR. SPEAKER: Shri Pranab this. Mukherjeee. 125 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 126

THE MINtSTER OF COMMERCE has got some time. Janata Dat has been (SHRI PRANAB MUKHERJEE): Mr. given ... Speaker, Sir, .. :.(lnterruptions) ... [ Translationl [ Translation] SHRI ASTBHUJA PRASAD SHUKLA: SHRI NITISH KUMAR . (Barh): Mr. Mr. Speaker, Sir, I am thankful to you for Speaker, Sir, it is guillotine of debates. You giving me an opportunity to speak. Sir, the had said that we would be given a chance to farmers are much worried over the Dunkel speak. We want to express ourviews before Proposals. More than 2000 farmers from the House. This discussion should be the villages stopped me on the road while I continued for some more time. was on my way back from my constituency, recently. SHRI ASTBHUJA PRASAD SHUKLA (Khalilabad): Mr. Speaker, Sir, the hon. MR. SPEAKER: Do not speak about Members belonging to B

[Sh. Astbhuja Prasad Shukla] patent then it will come with the name. There is no such proVision in this document Centre and State Govemments give subsidy' to decide this,and that is why the farmers on fertilizers, seeds, agriculture equipments have doubt about it. Position regarding and revenue but in this article nothings been Balance of payment, which is at page 4 of mentioned about the subsidy to be given on this document has been discussed today. revenue. The important question is after all Who will decide about it. It will be decided by what sort of subsidy will be given on GATT or y the IMF, it has not been made revenue. Regarding the patent the hon. clear in it. It has been 'stated in this documents Minister had stated that this related to sui- that we will get concessions in making export generissystem. In your documents in article and in subsidy through the B.O.P. The 27, it has been mentioned about effective Minister of Finance says that the problem of and reserves rights in TRIPS, who will be BOP has peen solved. We have 13 billion authority for it. dollars in reserve and the IMF loan is already being repayed since It is surplus. From MR. SPEAKER: It will be decided by where will we have the facility of concession the Parliament. in subsidy if the problem of balance of payment is solved and how will we have the SHRI ASTBHUJA PRASAD SHUKLA: facility in making export. There is It is being ~aid that it will be reviewed after contradiction between the statement of the 4 years. Jl1st now the holl. Minister has said hon. Finance Mil1ister and this document. It that a yill is being introduced for giving has been stated in the document that the concessIon to the farmers. It is a matter of facilities of subsidy and export will be given concern to us as what will be the provision- on the basis of BOP and how this will be after such review. Ours is a country of small given. These are some of the reasons which farmers. 65 per cent farmers exchange creates doubts in our minds regarding Dunkel seeds with each cther and use it in proposal. It seems that the farmers are agriculture. The Govemment should make being totally neglected and it creates doubts it clear that it will not be effective here. But in their minds. I=or a company like Cargill. the crop is being harvested today and the the land for gardening is in th& name of the farmer will store the seeds in the godowns company on the 0 .ther hand land -ceiling Act , and at the time of sowing he will bring out is also in operation .. The company is allowed from the godowns and it is for him either to to buy 40-50 thousands acres of land. sell it or to exchange it. Who will decide Whether the foreign companies will prepare whether it is being used for the agriculture chips, tomato sauce, pickle and papad, do purpose or not. These arc some minor farming also produce the raw meterial and if questions of the farmers. We have the the raw meterial is cheaper in foreign seeds of hybrid maize. Any company has countries then it will procure the raw material got it patent and the farmf!r~ives this seed form there. Then foreign companies will to someone else the company which got It export its product after procuring the raw patent gives it to someone else then the meterial. Then what we will produce in our company will say that this w~ their own country for making export. 80 per ent seed. Whether an action will be taken people in ourcountrv depened on agriculture.

against the farmers. Even the seeds bear What will be the fate 01 this country wher I the name and Jhere is no such product these foreign companies will start which does not bear the name and if it got manufacturing even the smatl items. On CHAITRA9,1916(sAKA) Rule 193 130 one hand ~ says that budget is like to talk aboot three things only. namely small and cdIage ~ oriented and seeds, &dlsidy ad export d agricultural assoQate. the people with the agriculture products. About seeds I just want to say that pnxb:Iion, on the other hand the foreign the way the discussion is going on here that companiesare beinginviled. The G0vern- hardly presents a true picture. I just want to ment has given the licence of food products tellyouaboutPunjab. In Punjabthefirst and processing to the Pepsi-cola company. We foremost need of a fanner is seeds. No aI are aware of the functioning and other country of the world or MNC can supply us activities of this company. Whether the seeds as per our requirement. We sow Government has ever verified that this wheat on 32 lakh hectares of land and for company is serving the very purpose for that purpose we require 32 lakh quintal which this was allowed to function and was seeds. No MNC can supply such a huge given licence. The multinational ""cOmpa- quantum of seeds. So this is ·regarding nies coming to our country will have some wheat alone. Similar is the case of paddy, profit motive. Coca cola has captured and the target for which is 20 lakh. it has captured the market of Thumbs up. The items made in villages which can be MR. SPEAKER: This is not related upto made by the handicapped rural children, the Punjab alones, but to whole country. women and the poor labourers will be made by the multi-national companies. Pepsi is an 17.00 hrs. example of it. SHRI UMRAO SINGH: I am telling you It is like comparing a man having hunch about one state. This would enable you to back with an ordinary man and on seeing a assess the requirement ofthe whole country. beautiful girl he wishes to marry her, but will No agency can supply seeds to the farmers she marry him? No, she will not marry him allover the country. Here the farmers because in the performance of marriage the multiply their seeds. whole body and not a particular part is involved. Similar1y this Dunkel proposal is They supply seeds not only to Punjab like a man having hunch back and the buttothewholecountry. There has been no Govemment should take steps to remove restriction over it and there would be no that. restriction. If any restriction is imposed on it then it is totally wrong. Many Universities SHRI BHOGENDRAJHA (Madhubani): Do not call it a hunch it is leprosy. and National Seeds Corpprations are supplying such quality seeds in our country SHRI ASTBHUJA PRASAD SHUKLA: which none else can supply. If any other It is all the same thing. Therefore, I oppose country can supply such quality seeds then this Dunkel proposal and I would like that the we have no objection. If a particular seed Govemment should not put signature on it doubles the yield of a farmer then naturally and this is the opinion of all the farmers. he will go for it. If he wants he can sell it in the open market, there is no restriction as MR. SPEAKER: Mr. Umrao Singh, such~ Now··such apprehensions are being please conclude in five minutes. pressed that entry of MNCs would be against the interests of the farmers. This issue was SHRI UMRAO SINGH (Jalandhar): discuded in the Par1iament two ad a half Everybody talks about the fanners. I would years ago. Since then we are heading 131 Discussion Under Rule 193 132

{Sh. Umrao Singh] MR. SPEAKER: The Minister will reply on your behalf. towards an open economy. It is being said that our country would be slave and would SHRI UMRAO SINGH: I would like to . lost its sovereignty but the Congress Party say that if more facililies are provided to the which led the countrytofmedom isoommitted farmers they can produce more. There to the development of the country and would be more horticulture and we would be security of its people. I would like to ask able to export foodgrains. Whether "fe go these people that where was America in for food processil)g. or finished goods it 1971 when we were jn Dhaka and it was would ultimately increase our prodl,lction being said inter atia that Annada Fleet of and thereby the country would flourish. Our America was approaching through colleagues instead of praising our country Singapore. Mr. Speaker, Sir, such things would like to say. that ... have no meaning. Neither we have been ever pressurised nor we are being "Hamko Uns Wafa Ki Hai Ummeed. pressurised at present nor we are afraid of Jo Nahm JanIe Wafa Kya Hai. " such pressures. I feel. if farmers are in need of something. they must be provided with Therefore the country is bound to make that. progress. It has been making steady progress for the last 40 years and it will Mr. Speaker, a point regarding continue to progress. I earnestly hope that subsidy has Qeen raised. The farmer does our agricultural production will increase by not need it any more. He needs electricity. ·using good seeds and it will also boost our I would again talk of Punjab where power exports and the country will be prosperous. supply continue only for 5-6 hours. Factories are not functioning for want of full electricity. SHRI NITISH KUMAR (Barh): I thank If electricity is also provided there or 20 you very much for providing me an hours it would help in increasing the opportunity to speak and I would like to production. B~sides electricity, they also submit and request that since you have require water and if they require water they given me an opportunity I may also be also require seeds. Our scientists are permitted to present my view point. I will not providing good seeds. take much of your time.

[English] Hpn. Minister is going to make a reply and all relevant aspects conceming this MR. SPEAKER: I must say that you are issue have been discussed between the not on the point. opposition and the treasury benches. After having listened the discussion and going [Translation] through this document as well as the comments of the experts and press. I have SHRI UMRAO SINGH: I am talking developed certain motions about it which about seeds only. The name of Dr. M.S have given rise to certain questions in my Swaminathan has been mentioned here. mind, which of course a common man can You had been to Moila and I am telling you also pose to me as it is a brunching issue about the advance study there. throughout the lenqth and breadth of the 133. Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 134

country. I would like toput up them questions that the Govemment of India is going to before you. acceptthe proposals regarding environment. I do not know what are senatory and fight After all whl'lt benefits we are going to senatary referred to by Ms. Malini Ji and get by remaining a party to the GATT contained in the GATT. Now there is not agreement? It is being said from the enough time to quote all that. I seek a Government side that it is a multilateral clarification about the environment proposals agreement and if, we remain party to it we being blindly accepted by the Government would be benefited in many ways. I do not that whether there is some restriction ""qnt go into details. You and your regarding use of p~sticides, insecticides Government nave made many statemenis and fertilisers used in producing cotton for inside and outside the House telling that it manufacturing clothes? Because, it is being would multiply our trade and commerce. believed that USA is g~ing to restrict the You yourself have said that this would benefit import of commodities in the manufacture of us to the tune of 1.5 to 2 billion dollars more. which pesticides, insecticides and fertilisers After all the data provided in the House are being used. Now in this scenario will we relates to the increase in the overall trade be able to increase our exports because the throughout the world, keeping that in mind promise made regarding reduction of 10 we want to know as to what would be our year backs loading period for multi-fibers share in that increase, would we be able to has not been reduced. and whether term 10 maintam cur current increasing of export or years any benefits will be reaped? I see.k an would it increase further ~':en after signing unambigucus claritication in this regard. the GATT agreement and in which sector we would be benefited. I would like to know the grounds on which you claim to undertake agricultural Repeatedly, it is being said that the exports. Many an hon. Members have textile sector would zoom. Just now Maliniji already put forth their views in this regard was mentioning one point. Considering and I do not want to repeat the same. The that, I would like to know whether we would issue of the Balance of payments position is be allowed to export any types of fabric? a point for discussion and who will certify You have talked about so many good things, whether it is good or bad? However, after while delivering a speech in the Business the agreement _marke,s for staple and Forum cf C-1 Fi cow-mins. Shri George has nonstaple food will have to be thrown open. demanded a clarification on one of its After the economy is opened the situation aspects. Really, I was very much delighted will be none better because compulsory while going through your speech but I doubt imports will have to be undertaken even in if you will stick to your stand because keeping the absence of any need. In that case what in mind the New World Trade Organisation will be the effect on prices and production? which would b"l created after the discussion You are an expert and can evaluate all the is GATT is over America bringing non-trade points. There are two school of thought. issu'es in the forefront and it has raised three One leftist and the other rightist. Both are questions. diametrically opposite political thoughts. However, Dr. Manmohan Singh can give an Three issues regarding labour expert opinion about the benefits and the standards, human dqhts "Ind environment manner in which exports could be have been referred to. It is oeing mentioned boosted. 135 Discussion UnrIer MARCH 30, 1994 Rule 193 13ti

ISh. Nitish Kumar] seeds then what will the government do? These companies have plenty oJ advertising While last time paltlcipating in the facilities and enough resources. Slowly but discussion on GATT proposai&. I raised hue steadily they will control the entire field of and cry regarding one poi"!. Yesterday Shri seeds. At the out sot they will sell seeds at Mani Shankar Aiyar reiterated the sarne cheaper rates but later on at higher prices. regarding export of nee. I would like to know As a result of this small and marginal farmers when America has evolved a new variety of will slowly find it difficult to keep themselves basmati rice under the name 'Texamati' engaged in agriculture and will start disposing then what will be the fate of ourbas'mati rice? off their lands. What the countrv will export and how? Therefore, I seek a clarification in this regard. Mr. Speaker, sir, example of the Govemment of Maharashtra regarding the Mr. Speaker, Sir, as far as the issue of permission to purchase 5,000 or 10,000 seeds is concemed a standing committee acres of land has been cited in the House. on Agriculture of the House is there. This way land ceiling limit on some pretext or Observations submitted by the Committee, the other is being lifted. However, such consequent upon the deposition of the things will make small and marginal farmers officers before the Committee, are well landless. I urge the hon. Ministertoallayour Known. The Committee: was informed th;>i fears in this regard. of the total seed requirements just 11 per cent of it could be met through certified Propaganda on Radio and TV will nUl seeds supplied by National Seed allay fears of the masses. Perception that Corporation or State Seed Corporations. Radio and TV will allay fears is misgiving Rest 89 per cent requirement of seeds is because messes can be divided into two met by the farmers among themselves. schools of thought. Only a minority can be After the GATT comes into effect then we impressed upon by it, but the majority do not will not tle free to sale the seed and consider this good and nurse many a permission for sale will be given only across misgiving. the fence as has been stated by the hon. Minister. All this talk sounds artificial SHRI MANI SHANKAR AIYAR because then no distinction will be made. In (Mayiladuturai): Election verdict will make that case who will be' responsible for the scenario clear. supplying 89 per cent se-.d requirements NIlen the farmers will not be preparing seeds? SHRI NITISH KUMAR: Mr. Speaker, Merely by saying that ICAR will not stop sir, I Cl:1'1 submitting all this with the national functioning and will continue to be on the interest in mind. Till now we have not toed scene sounds quite hollow. All right we party line. Sir, my party workers are being accept it that ICAR will not vanish from the subjected to water colons on roads. Still scene but even then how will the 89 per cent party line is not being followed. However, if seed requirements will be met? When the this issue takes party politics colours then it farmers will not be allowed to prepare seeds won't be good. Therefore, we want to totally from the plant feeders supplied by ICAR move the Government and submit that then from where 89 per cent seed please ponder over coolly on the entire requirements will be met? Further, when situation. The manner in which USA is foreign companies will h2.ve monopoly on including everyday flew things in it indicates 137 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 138 that tomorrow we will lose our sovereignty. system. In this connection I would like te I do not want to dwell at length on services reiterate the views of many hon. Members. and TRIPS, but GATT will result in Here provision of effective sui-generis globalisation and subsequently to high cost system is provided. Yesterday Shri Aiyar economy in the country. referred to it a lot. However, I do not want to cite it because the Bill has yet to be I got the opportunity to accompany the introduced by the Govornme"t. Hon. Speaker to IPU conference in Paris. There I had to give my suittor iron (Pressing) MR. SPEAKER: Do not get panic by and it cost me 70 francs. Hotel Ashoka even patent laws as our patent laws will be also at present charges Rs. 35-40 for laundry protected. work. There I ventured to purchase an ordinary pen ...... (lnterruptions). SHRI NITISH KUMAR: Sir, you are right but what is the Budget allocation for SHRI MAN I SHANKAR AIYAR: ::iir, Research and Development. USA and Japan You stopped my friend Shri Pawan Kumar are spending per capita $ 600 and $ 70n Bansal saying that the Ministerhad to speak. respectively on R&D and India on I}:' $ 3per He was given only seven minutes to speak. capita. Here is an hon. Member talking irrelevantly for the last 12 mint 'tes. (fnterrJptions). MR. SPEAKER: Because population is much higher .... MR. SPEAKER: That is not proper, Shri Mani Shankar Aiyar. (Interruptions)

( Interruptions) MR. SPEAKER: Please do not quote enough data. MR. SPEAKER: Shri Mani Shankar Aiyar's statement is irrelevant. What he is SHRI NITISH KUMAR: I am citing all ,rying to say is that high cost econofTIy this for elaboration only. Yesterday Shri should not be inducted into the country. It is Fernandes cited the example of a relevant. multinaiional company. Therefore sui- generis going to be evolved should first be (Translation) got approved from the Parliament. At that time we will be inclined to give amendments SHRI NITISH KUMAR: This is the for protecting our interests. At the time of reason for our feelings becoming more firm. review in WTO it Will be nullified. The Opening af economy will lead to increase in Government is moving the legislation with prices. I urge Shrl Pranab Mukerjee and Dr. an eye on the elections but the results will Manmohan Singh to save the country. make everything clear. Mere say in g that Money power is still an important big force. inte~ests will be protected is not going to Exchange rate between Dollar and Rupee is satisfy anyone or save the country. 1: 31. That's why we warn you about th,:, Therefore, today I would like to submit that timely action tha: CQuid b~ ..... (Intsl'ruptions) taken ... (hiterruptJons). MR SPEft··(ER: We think about St1'! Shri Jakharmentioned about sui-generis Aiyar and you are equally profiCIent in Hindi. 139 Discussion Under MARCH 30, 1994 Rule 193 140

SHRI NITISH KUMAR: You do not [TranslationJ want to get out of GATT. I submit that we must stay out of GATT as it is not beneficial. Do not spoil the them. Even if stiltit is being believed that GATTis beneficial then please take into account the (Interruptions) hue and cry being witnessed both inside and outside the Parliament and be swayed by SHRI DAU DAYAL JOSHI (Kota): the national interests and not of the feelings Nothing has been said regarding medicines. of Shri Aiyar. Please submit all the details While replying the hon. Minister should and documents to the experts and the political clear things about patents regarding parties if any decision has been taken in medicines. Camera ... (Interruptions) MR. SPEAKER: Please sit down. [English] (interruptions) MR. SPEAKER: Now, you have to conclude .... SHRI NIRMAL KANTI CHATTERJEE: I will just make one request to the Minister. You bear with me. The Finance minister has [ Translation] indicated that there are difficulties. ( Interruptions) SHRI NITISH KUMAR: Please trust us and form some consensus opinion for MR. SPEAKER: This is not going on providing maximum benefits so as to save record. This is very unfair. the country. The manner in which things are being initiated will clearly jeopardise the (Interruptions) • future of India and will take the country towards bondage. I can say this quite THE MINISTER OF COMMERCE confidently. (SHRI PRANAB MUKHERJEE): Mr. Speaker, Sir. I am grateful to the hon. [English] Members who have made their contributions on two days' discussion and I am also MR. SPEAKER: Now, nothing wil: go grateful to have the opportunities of sharing on record henceforth please. my perceptions on the Final Conclusions of the Uruguay Round of Negotiations as getting ( Interruptions) reflected in this draft Final Act.

MR. SPEAKER: This is not going on First of all, I would like to clarify certain record. These statements are not going on technical aspects. Despite my repeated record. assertions, many Members have pointed (Interruptions) out that something had been signed on 15th of December, some final seal of approval is MR. SPEAKER: You have made your going to De given on the 15th April. It is not point. They are good points. so. After 15th December, when the

"Not recorded. 141 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 142 discussion took place on this very House, I not be implemented. Therefore, we shall pointed out that by 15tn of December, have to keep in mind these technicalities. multilateral trade negotiating committee VJhich were appointed bV the group of I will now come to the points which Minister's Meeting at Puntadel Este 'In were raised by Shri Jaswant Singh and even September, 1986 have concluded their job while making his observation Shri Nitish and they have arrived at some their Kumar referred to that. First, what are the conclusions. Those conclusions will be gains? What are we achieving from this presented before the group of Ministers and round of discussions? I am grateful to the the group of Ministers will authenticate it that Finance Minister and the Agriculture Minister these are the conclusions, these are the because in their intervations, tbey have decisions arising out of the protracted covered much of the areas, particularly the negotiations and they will recommend to areas which went beyond the discussions of their respective Governments as the this document covering the national authentic document. As every document economic policy. Much of those issues have which has to be laid on the Table of this been dealt with by the Finance Minister and House is to be authenticated by the Minister, the Agriculture Minister has dealt in detail similarly, to the contracting parties to the about the problems, concerns which were Governments. tha, will be th", authentic expressed by the hon. Members on documents: That is not the binding one. agriculture. I would like to try to confine myself as far as possible tc this documen. Thereafter, it was decided that each and also to certain other issues which have country, within one year, will ratify it. Of arisen to of this acceptance of the GATT course, that date will be decided at Morocco treaty. Being the Merrber of the GATT. the whether it will be from firs! of January 1995 first gain we are having is -all the 117 or from the first of June 95. That is the contracting parties are ;r.ere-that tomatically indication which I am getting. It would be we are having the Most Favoured Nation first to January 95. It may be from first of treatment. June or first of January 1995. Within that period, the respective countries will ratify. SHRI S~,!FUDDIN CHOUDHURY according to the law, rules constitution (Katwa): From whom? whether they are accepting or they are rsiecting it. SHRI PRANAR MUKHERJEE: From all the countries. All the Members will The second point which I would like to extenc i!. AlJtorratrcaily. the Most Favoured pOint out is that this document itself is not a Nation Treatment is to be extended by all. self-executing document. Many of these This is the first gain. provisions will have to be implemented through the national legislation. Parliament Secondly, we shall have to find out will pass that law. Therefore, ipso facto even whetherwe have gained in textiles and what if this document is ratified, even if this we have gained? I have mentioned it on document IS Signed, 11 IS not going to be earlier occasions also from the very implemented. It is not a self-executing beginning, that we, the developing countries, document. Unless the various provisions of are pointing out that we want textiles should this Act are being translah,j into legislation be iiberalised and there should not be any by Parliament some of thesa provisions will quota restriction; the market of the 143 Discussion Under MARCH 30, 1994 Rule 193 144

ISh. Pranab Mukherjee) aware of it that the time which took to conclude these negotiations was mainly industrialised countries should be opened because of the quarrel between the to the textile exports of developing countries. industrialised countries in regard to the I am sorry my friend Shri George Fernands reduction of the agricultural subsidy. One is not here. But surely Shri Nitish Kumar will hon. Member has pointed out that even the convey it to him. He will remember that the. Prime Minister of Japan is not happy. As he Tokyo Round of negotiations started in 1973 has mentioned the name, that is why, I am which was the last Round, before this one mentioning the name of the country, the Seventh Round and concluded in 1979. otherwise, I would not have done it. Yes, he He was the Minister of Industry at that time. would not be happy because he has to Even at that time we tried to see that textiles reduce the agricultural subsidy. be brought within the discipline of GATT. Industrialised countries are compelled to But we were not successful. The reduce the agricultural subsidy not to the Industrialised countries resisted it. It is true extent that we want, but nonetheless 36 per that we are not totally happy but still we tried cent for 3 period of six years. Not only that and we try to do something. What has been They will also have to provide access to their the outcome of our efforts? There were market. Ane here the hon. Members are serious pressures till the last moment fully aware ofthe mechanism which is there. demanding that the transition period should The first suggestion was that you remove be extended from 10 years to 15 years. your quantitative restrictions and tariffy it and in the process of tariffication, it was We have been able to resist that. It is found that even their subsidy level is very not doubt, back-loaded. We wanted to have high, 600 to 700 per cent and even if it is i!front-Ioaded. But we also, when we placed reduced for a period of six years, to the our tariff bindings in the textiles, calibrated it extent of 36 per cent, then too the tariff wall to the extent that you will liberate the textile will remain so high that the developing industry, allow access to your market up to countries would no! be able to jump that. 15 per cent in the first two years, we 'Nill Therefore, it was suggested that you will reduce our textile tariff to that extent. If you have to provide to market access for import delay it, we shall also delay it. This is, to my to 3-5 percent of total agricultural production. mind, is a major gain. For that you shall have to reduce your tariff to the minimum level. You will provide the The third area is question of agriculture facility to import to the extent of three to five itself. When I quoted the observations of the per cent and thereafter you can raise it so leader of the ministerial group in the first that the opportunities to the developing meeting at Puinta del este and the countries materialise. I am talking of the observations of the minister in the last developing countries as a whole. I read it in meeting at Brussels in 1990, I did not want a journal that all this advantage, in this case to score any debating point. I wanted to wo ... ld be gained to the extent of fifty million point out that this is an area where our stand US dollars to the developing country. How is a prinCipled one because till today we arc much we will get the share out of that fifty having an uneven competitIOn in the million doliars is a different question. But the agriculture with the industrialised countries strategy which we wanted to have which we because their agriculture products are highly workeu out is ,hat the textile markel, subsidised. All the hon. Members are fully agricultural market of the industrialised 145 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 146 countries should be opened to the developing The GATT itself does not take away certain countries. To a considerable extent, we rights of any Government from the mightiest have been able to achieve that objective. to the tiny one of making any legislation Then there is ten year transition ~riod in which their Parliament or which their respect of intellectual properties particularly sovereign Govemment, according to their in respect of amendment to our patent laws. will (:or.sider it necessary. The question is, Here I would like to dispel one misconception if that piece of legislation causes injury to that as if India is not having any patent other members of the GATT, earlier there regime at all. And the TRiPS do not deal was no court to appeal. Today there is a only with patent laws. There are certam court of appeal. Who is there, Dispute other laws, the copyright law, copyright Settlement Mechanism would be there to related rights, trade marks, geographical listen to you. Whether you will be able to indication, industrial designs; patent, layout plan your case or not is a different story. But design, integrated circuits, protection of a forum is available, the forum which was undisclosed informalion. In all these things, not in existence earlier. This is the gain to we do not have any trouble with the my mind we are going to have. international laws. Therefore, somebody pointed out that nearly 95 per cent of the I PR A case has been built up as ifthe whole regime is in conformity with the international world is going to collapse if we sign the laws patent laws. Thereto, it is not correct GATT. I am coming a little later to the to say that 1970 patent Ic'''' does not permit sovereignty and other aspects. A case has product patents at all. It is not so. been built up as if the whole world is going to collapse. What is this agreement? You It does not aliow product patentina in would require six months notice to come out foodstuff, in pharmaceuticals and drugs of GATT. Even I mentioned to you that if at chemicals, but it allows product patending in any poirl! ot tim" the Parliament consider& engineering goods, in machineries. that certain provisions of this Act are not to Therefore product patenting is permitted in be implemented, If the collective wisdom of some cases, the case where we do not the Parliament considers it necessary, they permit product paleninti:.) and have we will throw that. shall have to amend our laws. It has been clearly explained by the Finance Minister; I About the laws which are being brought am not going to the details of that. The in, much has been pointed out. What is the advantage which I am talking of; I would not effect of sui generis? mention the name of the two countries which are outside GATT. While they were trying to [Translatio,,; have bilateral trade negotiCi,iolls, they were forced to change 'heir patent '<~\'\IS and to SHRI NITISH KUMAR: In the new bring them at par With international laws agreement being entered into whether there w.ithin one year. Here the advantage which is the pr()visi0n .,~! ~ix months notice? we are talking of that we are getting a period of ten years for changing our laws. [English]

Very often it has been raised; the SHRI PRANAB MUKHERJEE: What is unilateral panal action by the powerful effective sui-generis') The word sui generis economic nations. What we have to do? itself- Srimati Mali Bhattacharya is a professor 147 Discussion Under MARCH 30,1994 Rule 193 148

[Sh. Pranab Mukherjee] the then Director-General, Arthur Dunkel brought out a proposal on which we thought in English, she knows better than I do - is one that there could be an agreement. This is of its own kind. It is unique one; it has no known as Dunkel Proposal. • parallel. Therefore the sovereign nation21 legislatures will have to make that law to give [ Translation] the protection to the plant breeders. It wi!! be your own law. What does 'effective' SHRI NITISH KUMAR: This is an old mean? Very often in the GAIT you wi" find point say something now. 'effective'. That 'effective' does not mean some sort of supervisory ri,]ht. The laws, the SHRI PRANAB MUKHERJEE: Old is rules, the decisions which you are going to also to be repeated. I am just pOinting out have must be transparent. The laws which how we acted. we are going to have to protect the plant breeders right and protect the farmers right [English] must be effective laws. The law itself should be construed in such a way that by plain Thereafter, the Prime Minister reading of the laws one would find the appointed a Cabinet Committee under the effectiveness of the protection provide to chairmanship of Sh,i Arjun Singh. I have the the transparent sense of the laws cled;:y whole list of persons with whom Shri Arjun indicate the farmers rights to the plant Singh had discLls::;ions. You will fine! tr~ breeders rights through various provisions names of political leaders, lI:1de union of laws. You have to provide it, that is sui leaders, leaders of Chambers of Commerce generis, whatever you would like to give. and Industry and various other experts. All Therefore you am 'llakin(] your own laws. the important personalities concerned, (Interruptions) who wanted to give evidence, did come and give their evidence. Thereafter, he made a Let me finish, tilen you will start recommendation that we should have a interventions. I have listened to you; not discussion on the floor of the Parliament. now. I am not even at one-fourth of my Unfortunately, though we wanted to have a observations. di"·~ussion. we couid nofhave it in the whole of 1992 and 1993. Therefore, just to' come This is a piece of legislation which IS to the conclusion th3t we did not want to .:;oming for your cJnslderakm. Th::; have a alscussion or some sort of a Agriculture Minister is having discussions consensus to have a discussion. is not with you. An allegation has been made that correct. we have not discussed with anybody. Most respectfully I would submit that if we go The questioll ot Chief Ministers has rough the sequences of events - please look been raised by Shri Jaswant Singh. When into it - in 1986 September the discussion the negotiation was overby 15th December. started; the timeframe was more or less I wrote to all the Chief Ministers on 20th decided thilt it will be concluded by December January and I sent a copy of the draft to them 1990. requesting them to go through the draft so that we can have a discussion with them on But it could not be concluded by it I<'ter ,:>n. Then. I have even reminded December 1990. Then, by December 1991, tMm. I am happy to inform you that six of 149 Discussion Under CHAITRA 9,1916 (SAKA) . Rule 193 150 them have responded and the process for issues raised by some of the hon. Members, discussion is being started. It is not as if we I oughItociarify Oile Issue in particularwhic.f; had no discussions. To say that we are not was raised by Shri Jaswant Singh about the discussing these issues and that we are position of revenue foregone, as to whether taking unilateral decisions is not correct. it should be considered as I told as to why I could anement of subsidy or support that we SHRI NITISH KUMAR: What happened have provided. The answer is no. Because before December 1993? subsidies are reduced to avoid trade distortions. Here, we have to keep in mind SHRI PRANAB MUKHERJEE: I told that foregoing these revenues is a device to you what happened before December 1993. exempt the poor farmers from paying land Even in last April, all the political parties r€ venue, etc. All these belong to the category including the party of Shri Nitish Kumar, of resource-poor farmers. including the CPI (M). with the exception of BJP, have responded to our invitation a,id As far as resoLirce poor farmers are we discussed the issue. In respect of the concerned, according to our statistics thAV report of Parliamentary standing committee are nearly 70 per cent. They do not come I total as to why not act on it. Of course, the under any discipline at all even in this GATT. major conclusion of the Parliamentary When I took into account the total aggregate Committee headed by Gujaralji may be measurement of support I went through a recalled and I want to quote the concluding simple arithmetic. I took the total quantum recommendation of the Committee. It says: of subsidy which we are providing through the State and the Central Budgets and "There are differing opinions through various other mechanisms. From expressed on the desirability or otherwise of there, I came to the conclusion. That there India binding itself to the IJruguay Round. is no need of further reduction our subsidies There is no denying the fact that the final I have already shown that to you. I am not outcome is not in the best interests of India going to repeat it. The level to which could on every c(Junt. But in multilateral go and the present level which is there is agreements; it is always a question of give more than As. 19,000 crore of negative and take. Undoubtedly, in today's world, subsidy. Therefore,to my mind, it is not with increasing interdependence of nations, going to affect it at all. multilateral agreements with MFN status for all the participants are decidedly Now, I will come to the areas of advantageous. as compared to bilateral investment. This is a very important pOint. agreements. Every country has the If you have different opinions about our sovereign right to stay out of GATT and it investment policy, you are free to have it. If cannot be argued that India's interests would you are not in favour of the Industrial Policy be served best by giving up the membership Resolution which was placed before of this of this forum." House and which was discussed in July, 1991, you are free to put your point of view. Therefore, it is not correct to say that But when you are talking of GATT and when there has nct bee:, any consensus or any you are discussing Trade-Related discussion or any consultation. Investment measures, there, you must not confuse. It is because the T rade-Relatfld Now coming to some of the substantive investment matters will be ..:;onvered by 151 Discussion Under MARCH 30, 1994 Rule 193 152

[Sh. Pranab Mukhe~eel Therefore, what I am suggesting is this. I would like to be corrected. Trade is directing GATI. I am just quoting from the agreement investment. Whether your investment or TRIPs. policy .. (Interruptions)

"The agreement on TRIPs is SHRI SOMNATH CHATIERJEE related to the trade in goods. The (BoIpur): You have an art of not listening to basic obligation of the agreement anybody! is contained in Article !I which requires that the Members shall SHRI PRANAB MUKHERJEE: You not apply anything which is asked me whether GATI is compelling you incensistent with the provisions of to open your industry for investment. For Article III, that is natural treatment that my contention is, it is not. You will have or Article XI( 1) - quantitative to decide yourself in which area you would restrictions of the GATI. 11(1). like to have or not to have an investment.

As far as trade in goods is concemed, SHRI NIRMAL KANTI CHATIERJEE: I GATT does not compel you to open a am reading from TRIMs - To facilitate particular area for investment from abroad investment across the intemational frontiers. for investment. GATI has nothing to do with ( Interruptions) this. Whether you open some area or nottor investment, it depends on your own individual SHRI PRANAB MUKHERJEE: I do not decision, on your own will. If you consider know. that foreign investment is necessary you open an area. The other day it was pointt:!d Now, I will come to services. out as to why do we want this. (Interruptions)

SHRI NIRMAL KANTI SHRI NIRMAL KANTI CHATIERJEE: C'.HA"f'TERJEE (Dum Dum): Foreign chips Sir, you wanted that only books to be referred wltrtlaVe to be allowed. If you want I shall to. I am only referring to books but he is not 1IU(I~e now. Right from Culcutta to yielding. A1Iatlabad ... (lnterruptions) MR. SPEAKER If he is not yielding, SHRI PRANAB MUKHERJEE: You are then you should yield. talking about services. I am talking about investment. SHRI PRANAB MUKHERJEE: Here I would like to make one point clear. There SHRI NIRMAL KANTI CHATIERJEE: has been a lot of noise made here that we Shall I read it? " have opened up everything viz. commercial banking, insurance etc. What is the SHRI PRANAB MUKHERJEE: Let me provision? It has been agreed. Our do it now. Thereafter you can do it. It is .Commitment today is standstill. What is beca"use you have the habit of regarding meant by, standstill,? It means the policy something out of context. But let us not go which prevailed during nationalisation of into that. ba~ks in 1969 and continuing till day remains 153 Discussion Under CHAITRA9, 1916 (SAKA) Rule 193 154 as it is. It has been agreed that as far as appreciate t~e comment. However, on financial services c>r'3 concerned, prii~cipte, I would like to appreCiate the fact negotiations will go on even after six months that Prime Minister disowns his Commerce of the completion of the acceptance of GAT; Minister, In a parliamentary democracy 1994. Therefore, it .vi:! dcpdnd Oil the basis collective responsibility means owing up. of reciprocity. If we conSider that in our own My simple point is that if such a great interest certain areas would be opened up, conspiracy took place after April 1989 , where we will be free to open them up. If we the sovereignty was mortgaged, economic consider that certain areas should not be independence was mortgaged then why for opened up, surely, nobody can compel us to one full year, they could not discover it? open them up. (Interruptions) They told us immediately after assuming SHRI NIRMAL KANTI CHATIERJEE: office that - the Finance Minister told us - You have already opened them. that they had inherited empty coffers. The Railway Minister also told us that he was MR. SPEAKER: Shri Nirmal Kanti happy that the Railway administration had Chatterjee, no continuoLls commentary been very good and that he would like to please. carry it on.

SHRI PRANAB MUKHERJEE: Now We were also told that corruption at coming to the areas mentioned, one point high places wou'd be revealed. But.ve we;·.~ has been raised and particularly when Shri not told for one whole year that the Rabi Ray was making his observations I was sovereignty of the country had been listening very carefully. Certain other hon. mortgaged by a decision in April 1989, Members also me'ltioned what happened in April 1989. Sir, let us come to the concept of sovereignty and this mortgaging business. I I know one thing happened after April any not going to quote either the President 1989, at the end of 1989, or in November- of the USA or from foreign journals. My December 1989: They came to power, Did knowledge is limited and my reference is they suddenly discoverthat some conspiracy only to this House, the Lok Sabha. I am had taken place in April 1989? Did not they quoting one observation here made on the know where they were in power? The of one floor of this House: year, when they were 10 Govemment, when negotiations were going on why did not they "You mortgaaed our economic realise that the sovereignty of the country sovereignty, you hyp.othecated our was mortgaged? They had a Prime Minister. national honour and dignity. You have They had their Ministers, they had a annihilated the Indian economy. You Government, and for one whole year they have bound the entire nation to did not realise it? unscrupulous moneylenders.'

SHRI SAIFUDDIN CHOUDHURY I was said to Shri R. Venkataraman, (Kalwa): Govemments are bad; Oppositions the then Finance Minister on the 2nd are good. December, 1981 by a Member, wh<;> is not here today. but his party is here and they SHRt PRANAB MUKHERJEE: I can also spoke in the same tone. Therefore, 155 Discussion Under MARCH 30, 1994 . Rule 193 156'

ISh. Pranab Mukherjee] I am not going to be rhetorical at all ! sovereignty was mortgaged in 1981. In that SHRI SRIKANTA J ENA: The cases of case this is second mortgage they. Or, if I some of the hon. Members who ~re sitting go back to 1966 devaluation, then it will on that side are in the courts. You are nOI appear to be the third mortgage! How many enjoying a majority. times sovereignty can be mortgaged ? Therefore let us not take this. SHRI PRANAB MUKHERJEE: Alright am not enjoying a majority. But in a SHRI SOMNATH CHATTERJEE: parliamentary democracy when a decision These comments will not relp, Shri Pranab' is taken on the floor of the House, it becomes Mukherjee. a decision of the House. Therefore, if a Parliament approves a piece of legislation SHRI PRANAB MUKHERJEE: What I which will give effect to the proposals of the am trying to point OLlt is; that the sovereignty GATT you cannot say that you· are of India was not mortgaged; in past nor it is mortgaging your sovereignty. That is may going to be mortgaged now. limited point. Why I am claiming your I have told you that each document propositions are in concert? Why I am cannot be implemented on this own. It will confident? I am confident because )f have to be implemented thmugh legislation. somebody says that tomorrow people will Parliament has to legislate. not be allowed to use Neem stick to brush his teeth people but find that they are using it SHRI BASUDEB ACHARIA (Bankura): no chowkidar has come to take away, that You have the majority. right your argument will fall flat. You Geaim that the farmers will not be allowed to keep SHRI PRANAB MUKi-iERJEE: Yes. their seeds. When the farmers will be able We have the majority, we have the majority to retain their seeds, your argument will be will of the country. We can do it. This is the flat. Why are you agitating today? Why do basis of parliamentary democracy. you not wait for another crop season? Why ( Interruptions) doyou not wait? 4ccording to you sovereignty has already been mortgaged. That is your SHRI SRIKANTA JENA (Cuttack): It is contention. On the other hand, you are not as a result of horse trading. prepared even to wait for one crop season, to find out whether the farmers can retain SHRI PRANAB MUKHERJEE: I am not the surplus of their own production and use talking of horse trading or sheep trading. it as seed. The point was raised on earlier ( Interruptions) occasion also. They will be able to multiply it. When you are having the right of Parliamentary democracy means that exchange, when you are having the right of the majority decision will be there. selling it... (Interruptions) You may contestthe decision. But once the decision !S here, it is not the ( Translation) decision· of the ma~>tity party. It is the decision of the House. Once1he decision of SHRI NITISH KUMAR: Mr. Speaker, the House is there, we shall have to agree to Sir, th~ hon. Min;:.;i"lr is referring to unethical it. (Interruptions) points in the Howse and teaching the same 157 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 158

too. It is unethical to suggest that we should can challenge so many things. Yesterday, sell seeds as grains. (Interruptions) Muster the whole day I had to spend to explain to majority support through defections and sell you that this is GA TI 1994. seeds as grains. I a talking of the entrenched article [English] which has been dealt in article II. That Article II will require, any amendment of the SHRI PRANAB MUKHERJEE: One provisions mentioned in article II requires to point, Mr. Nitish Kumar wanted to know, be accepted by all members. namely whether as a result of environment, United States of America can stand in the SHRI RUPCHAND PAL: What is written way of our exports. I can inform the hon. in Article IX? (Interruptions) Member that U.S.A is a country which uses maximum chemical fertilisers. Therefore, if MR. SPEAKER: This is not going on they are to put any embargo, they will have record. to think twice, what is going to happen to their products. SHRI PRANAB MUKHERJEE: Now what is the sequence? The sequence is, on Secondly, the point which I h"ve referred 15th of April, it is not going to be accepted. to, is not in the summit ofG-15 countries but, of course, in a programme connected with 18.00hrs the G-15 summit and I mean it. I just did not say only for public consumption. I said II in On 15th of April, the Minister are January. That whatever has been agreed, recommending to their sovereign this is my clear understanding till today, that Governments that this is the authentic nothing will be reopened if any article has document; this is the authentic conclusion of been reopened, every sovereign 117 the Uruguay Round of discussions. countries will have its right to reopen. SHRIMATI MALINI BHATIACHARYA I am precisely 9.oin9 to bring your (Jadavpur): Is this the same that we have? attention this point. You just see article 2 where it deals with the breach of entrenched SHRI PRANAB MUKHERJEE: Let us article. It is by all members. It is said that not have any cross-talk now. Therefore, my amendments to the provisions of this Article point is this : suppose somebody wants to . and to the provisions of this Article and to the raise an issue. (Interruptions) provisions of following enumerated Article shall take effect only upon acceptance by all I do not have that much of chivalry as Members. That means, the veto which we you have. (Interruptions) have in article one will continue. Therefore, ... SHRI SOMNATH CHATTERJEE SHRI NIRMAL KANTI CHATIERJEE: I (Bolpur): Have you circulated something amchallengingyou. It is article X. There are else today? some amendments for which, it is by two thirds. Look at article X. SHRI PRANAB MUKHERJEE: No. The point is every article, very section has differ- SHRI PRANAB MUKHERJEE: You ent pages. Please see the MTN/FA-11 on 159 Discussion Under MARCH 30,1994 Rule 193 160

[Sh. Pranab Mukherjee] was regarded as the final conclusions of the Uruguay Round of negotiations. at we are page 6 of this Article X(2) which says: going to have on 15th is the authentication. "Amendments to the provisions this Article When you have the authentication, you and to the provisions of the following cannot bring in new issues. If you want to enumerated Articles shall take effect only bring in new issues, then, every Member will upon acceptance by all Members." What have the right to bring in new issues. We are are these Articles? (Interruptions) govemed by Article I. That Article I will be a part of GATT 1994 when it will be accepted SHRI NIRMAL KANTI CHATTERJEE: on 1.1.95. But what is going to govern the it is not the whole thing. Article X is on proceedings on 15th of April is not these amendments. These are meant for all provisions-here, that is, the existing provision members. The whole article is on of GA TT.That is why I mentioned yesterday amendments Please have a closer look at it that there will be an overlapping period when (Interruptions) this will be in operation and GATT 1947, as emended from time to time li1l1979, will also SHRI PRANAB MUKHERJEE: Let us be continuing simultaneously. not go into that aspect. I wili now come to the question of seeds curing. What would SHRI SOMNATH CHATTERJEE: How happen? Seeds which are being developed long will it continue? by the publicly funded research institutions or the Universities need not be subject toany SHRI PRANAB MUKHERJEE: I think, restrictions. The question came up: from till the integration is there. Theref~re, my where are we getting these things? Now, contention is, the pOint which I wanted to put the point is that two thirds majority will be across is that these are extraneous issues. required. Some Articles are not in the nature What are they trying to do? Let us be very of the entenclment in respad of article I the clear on this issue and how can we prevent veto right is there. That is an entrenched it. There are three elements. I have no Article. That is my contention. Therefore, hesitation in saying that the developed that Article is protecting .the rights. The countries combine together. You are talking Articles which are not entrenched Articles of the GATT regime. Are we the only can be amended by two-thirds majority. But concemed persons? It is not like that. All the the Articles which are entrenched Articles 117 countries are concerned about it. All the' including Article I which is the basic Article, 117 countries have some a patriotic sense. which deals with the basic right of the Let us not think that only we are patriots only Members, that cannot be amended merely we are concerned about this documents. by the two-thirds majority. (Interruptions) Everybody is also weighing where the ad- vantage lies. If we find that the balance of SHRI SOMNATH CHATTERJEE: advantage lies in being a Member of the ._Therefore, what you say is that cannot be GATT and particularly the context of the easily altered. prevailing scenario, what will we do? Of course, in many areas, there is a weakness. SHl=!1 PRANAB MUKHERJEE: My point I do not say that everything is quite clear. is different. You hava not/allowed me to The ambiguity is there. It was there in 1947. complete my point. I can complete my point. It was there afterthe Havana Round ottalks. If you permit, if you want. My point is: i~ this It was there ere after the Tokyo Round of 161 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 162

talks. When various countries make their with us that these are extraneous issues. legislation, they try to put it in into implemen- We are saying that it is not that we are not tation. If one comes in contradiction with the concerned with human rights; it isnot a fact other, then, the dispute settlement mecha- that we are not concerned with the labour nism comes in and then through bilateral rights; it is not a fact that we are not discussions, through the fora which are concerned with environment. But our pOints available, they settle it. is, in each area, there is a separate forum. ILO is there; United Nations Human Rights Therefore, it is not correct to say that Commission is there. And also we are whatever is written here is going to be commiUed to the Montreal Declaration, we applied in letter and spirit because while are committed to the Rio Declaration so far implementing it, we will find that there may as environment is concerned. But we do not be many areas, grey areas are there, which want that this sh<;>uld be brought as a non- will have to be clarified and those will come tariff barrier. If you say that the Uruguay in the course of dialogue and discus·sion. Round of discussion has message and if (Interruptions) that message is to create an uninterrupted trade flow from each of the developing SHRI NIRMAL KANTI CHATTERJEE countries to developed countries without (Dum Dum): Is it your proposal on social any tariff barrier or without any non-tariff laws? barrier, then simply in the name of the enVIronment, in the name of the social cost, SHRI PRANAB MUKHERJEE: No, it is you cannot raise any fresh non-tariff barrier. not there. That is why I am saying that you cannot bring it. (Interruptions) SHRI SOMNATH CHATTERJEE: That is what you are saying. But are they accepting SHRI SOMNATH CHATTERJEE: it? want to ask about the social cost. It is rather disquietin£j. I do not know about it. You SHRI PRANAB MUKHERJEE: That is know about it as the Commerce Minister the position. Now if s'omebody wants to that the US and other developed countries insist on it then what option we will have. have proposed a countervailing duty. In Every country, it is not merely our concern, Marrakesh Declaration it will put a final seal every 117 countries will have the right to say of approval. Developi!)g countries like India that you cannot simply bring it. So far as my may as well as give up trading with US information goes, the discussions which are sponsored move to introduce the social going on, perhaps, in a day or two, it will be costing into the price mechanism for exports finalised. Many of the developing countries become a reality. I would like to know what and some of the developed countries say is your information and what is the response. that it should not be accepted. (Interruptions)

SHRI PRANAB MUKHERJEE: Exactly this is my problem, my concern. There is a SHRI SOMNATH CHATTERJEE: Can pressure that it should be brought in. And you say this categorically on the floor of the this point was raised in an informal discus- House that the Government of India sion at Davos also. There. first I raised it and will never accept it? Kindly say this. many of the developing' countries ~greed ( Interruptions) 163 Discussion Under MARCH 30, 1994 Rule 193 164

SHRI PRANAB MUKHERJEE: My po- plaining. This is nothing but compromising sition is quite clear. (Interruptions) ourdignity. He cannot say that. TheCabinet Ministers cannot say that. What is this? It SHRI NIRMAL KANTI CHATIERJEE: has tobe clarified. Let Shri Pranab Mukherjee Because of this countervailing duty, the say ... (lnterruptions) ... They must say that. advantage that we have is the low leve: of What will happen if Super 301 is imposed? economy. Let him say that. (Interruptions) The whole Parliament will be with you Shri Pranab Mukherjee. Please stand up .... (In- SHRI SOMNATH CHATIERJEE: Do terruptions) ... They are talking of consen- not hedge it. sus. When we are offering it, they do not stand up. This is a spineless Government. SHRI PRANAB MUKHERJEE: No, no. This Government has become spineless; a Let me explain. I am having an opportunity coward Government. We cannot accept of having a discussion with a large number compromising our independence, our dignity of countries. We are going to host ESCAP A. and position. Therefore in protest yve 50 countries are joining this session. cannot participate in it. Therefore. let us not formulate our views right now. Let us have i'I discussion with them. What I have said already is on·record. 18.11 hrs I have said it in Davos. I have said it in Delhi that we do not want any extraneous issues At this stage Shri Somnath Chatterjee to be raised. But surely, I cannot say and some other hon. Members left the that. .. ( Interruptions) House.

[Translation] SHRI SRI KANT JENA (Cuttack): On this issue we are also walking out. . SHRI NITISH KUMAR: Please also tell what purpose will it serve? (Interruptions) 18.111/2 hrs

(English] At this stage Shri Srikant Jena and some other hon. Members left the House. SHRI PRANAB MUKHERJEE: I am making it quite clear th~t I cannot bind SHRI SOBHANADREESWARA RAO myself. (Interruptions) I am not committing VADDE (Vijayawada): He has not answered myself; I am not binding myself in any way. the questions thatwe have raised. Therefore Thank you, Sir. (Interruptions) we are walking out.

SHRI SOMNATH CHA TIERJEE: Hon. 18.12 hrs the Commerce Minister has himself expressed great reservations. He said that At this stage Shri Sobhanadreeswara it will be dangerous for us. If USA and other Rao Vadde and some other hon. developed countries impose countervailing Members left the House. duty. where will yo,' export? What will you export, Mr. Commerce Minister? This is his SHRI BHOGENDRA JHA: Along with statement also. That is his apprehension also. But today India cannot stand up and the USA, France also is reported to have say this. supported this move .... (Interruptions) ... In such a situation US is being supported by The entire Parliament will support you. France. According to the Final Act, France This is the surrender we have been com- is a membtlr of the ... (Interruptions) ... 165 Discussion Under CHAITRA 9,1916 (SAKA) Rule 193 166

MR. SPEAKER: These things are not by national legislatures, which is a period going on record. Why are you speaking? which might last over nine months, is there (Interruptions)" ... any option for change? If there is no optiui·. for change, then how does the question of 18.12112 hrs social costs come at all?

At this stage Shri Bn')gendra Jha and MR. SPEAKER: That point is clear. some ,other hon. Members left the House. SHRI JASWANT SINGH: Secondly, (Interruptions)" what is the status of the World Trade Organisation and National laws? 18.13 hrs The point was raised by me that once At this stage Shri M. R. Kadambur the WTO comes into existence, national Janarthanan and some other hon. laws of the variety of US Section 301 must Members left the House. no longer apply. I wish to ask the hon. the Commerce Minister to clarify here that that MR. SPEAKER: He has made the point will not obtain as soon as the WTO comes very clear. He, as a Minister, on his own, in into existence. There still remains ambiguity such complicated matters, at the spur of the on that score. moment, is not expected to respond.

SHRI JASWANT SINGH (Chittorgarh): Fourthly, I had re4uested a clarification Thank you for permitting me to ask as to why Annexures 4(a) to 4(d) to the clarifications. Two or three of them are plurilateral agreement are not contained in reiterations of the points that are made the document that has been Circulated. when I had an occasion to intervene. Those From what" I understood from the hon. points have remained unanswered; but I Minister's clarification, they have not been feel they are sufficiently important. Firstly, circulated because we are not a party to I want to be clear in my mind about thf! those agreements. My query even then is understanding of the process. Is it correct why we are not a party to it when this is an that between authentication at Marrakesh entire and total agreement. The first on 15th April and subsequent ratification by annexure is about trade in civil aircraft. Why national legislatures there is no option are we not a party to the trade in civil available to change anything in the Final aircraft? Second is about the government Act? This point has been repeatedly made procurement. Why are we not a party to and it has a very direct relevance to what I government procurement? The third is am going to come to subsequently. The about international dairy agreement. What hon. Commerce Ministerhas asserted earlier is it that has prevented us from becoming a on 15th December when we had a discussion member oft)1e international dairy agreement. • that after 15th December it would be very Fourthly, there was an agreement about difficult for any Government to change what bovine meet, which is, of course, is accepted on 15th December. Now it is understandable. These have not been going to be ratified oro the 15th April. After clarified. I requestthfe hon. Ministerto kindly authentication on 15th April and ratification clarify. ------" Not recorded 167 Discussion Under MARCH 30, 1994 Rule 193 168

SHRI DAU DAYAL JOSHI (Kota): Mr. tries ask for an amendment, technically, it Speaker Sir ... (Interruptions) ..• can be done.

MR. SPEAKER: What Shri Joshi is SHRI JASWANT SINGH: Mr. Speaker saying will not form part of the record. Sir, if you permit my saying so ..

SHRI PRANAB MUKHERJEE: Sir, MR. SPEAKER: That is what he said. hon. Member Shri Jaswant Singh has raised This is not my statement! a very pertinent point about social causes. This exactfy is the argument that I am using SHRI JASWANT SINGH: Then I think againsi those who are trying to include that it becomes very necessary that the social causes. After seven years of strenuous Commerce Minister should give us an exercise, we have come out with a document. assurance here that if such a situation If you want to make any change, then it will arises ... (Interruptions) not be confined only to your desire. All the 117 countries would like to choose their SHRI PRANAB MUKHERJEE:' options. Then, the whole Pandora's Book Jaswantji, I have not replied to your query will be opened. This is the argument that we regarding the annexures. Before you walk are using and we are saying that there out, you may please listen to my clarification. should (loi be any change in the document I am not giving any assurance and in that itself. This is the practical point of view. But event you are likely to walk out. So, before • technically, it can be done. When the walking out, kindly listen to my reply as to Ministers are meeting, it is not merely the wtiy we are net a party to the annexures. MiAist~rs of developed nations alone. There will be 117 Ministers and if all the 117 These points were made in the Tokyo Minister say that they want to make a change, Round of discussions. You know GAnand legally there is no restriction. But practically, its jurisprudence. It has 40 volumes which problems will arise. After a strenuous effort runs into thousands of pages. Those things of seven years, whatever be th~ outcome, it have been mentioned at the plurilateral cannot be one hundred percent satisfactory agreement. These are the Agreements to each and every one. It is true even in the which going on from the Tokyo Round. In case of powerful countries or a group of the Uruguay Round, they were not brought. nations. Seeking a change would open a In the Tokyo Round we were not party to it. Pandor"l's Box. But legally speaking, the Therefore in the Uruguay Round also there Ministers have a right. was no question of our being a party to it. This point has been clarified in Article II of MR. SPEAKER: Iftherequisitemajority the agreement establishing multilateral trade of the Ministers want it, they can do it. organisations. I will quote Article" which says: SHRI JASWANT SINGH: Does that mean that the Final Act can be changed? The agreements and associated legal instruments included in Annexures 1 ,2 and MR. SPEAKER: There is an amending 3 (hereinafter referred to as "Multilateral clause which requires a certain number of Trade Agreements") are integral parts of countries. If that certain number of coun- this Agreement, binding on all Members. • Not recordea 169 Discussion Under CHAITRA 9, 1916 (SAKA) Rule 193 170

In regard to plurilateral agreement, in observation of the hon. Minister of Com- clause 3, they have said that these are not merce that we intend to stage walk out. binding on those who are not Members or Atleast we do not intend to stage walk out on who are not going to accept it. our own sweet will. If compelled we will be forced to discharge our duty. Now I will come to the first clarification which you had sought for. I would like to say Recently I have come back after that thls will be the authenttcated versio" of attending G-15 summit's last ceremony. the Uruguay Round of discussions. The The document approved byG-15 expresses moment I authenticate it, I cannot change it. the views of the developing countries. The moment these are recommended - the However, the document also pOints out that final results of the Uruguay Round of the affluent nations on the one hand are discussions which you are recommending going to sign GATT and on the other hand to the respective countries either for their are going to create more problems regarding acceptance or for their rejection after 15th trade. April to the sovereign countries by the Group of Ministers, then you cannot change. You can accept it or you can reject it There has been a mention that the ratification shonld Dr. Manmohan Singh accepted that be made by our Legislature. So far as the world is based on the principle of ratification is concerned. it mess under the inequality. The question is whether inequality jurisdiction ofthe executive. It is the Cabinet will increase or not? By signing this document which should ratify it. It is the Government intend to fight against inequality. I would like which should ratify it and not the Parliament. to know whether it will increase or we will jeopardise ourso .... ereignty. In the afternoon SHRIJASWANTSINGH: Mr. Speaker, also I raised this point and I am again raiSing Sir, it should be very easy for the hon. it now. If Shri Muknerjee is not in a Position Minister to say that between now and 15th to reply there it is altoglther a different matter April viz. the authentication of the Final Act, . shri mukher Jee in an interview to "Dainik we will not accept US demands for social Jagran" has conceded that the agreement is cause. being signed under duress. In fact the agreement is not good but we will be isolated MR. SPEAKER: The categorical . in the world. We want to be a part of world suggestions cannot be given by any Minister trade. Shri Jakhar is not present in the without consulting his Cabinet Members. House. I would like to submitthat if within six months it becomes clearthatthe agreement SHRI PRANAB MUKHERJEE: I am is not beneficial to the country and the using this argument as to Why it should not farmers then will we be taking recourse to be brought. That was the spirit when I said the withdrawal clause. I want categOrical that extraneous matters should not be reply. Situation is serious. Please reply. brought to stand in the way of the Uruguay Round of discussion. That is my pOSition. I have said it. {English] [Translation] SHRI PRANAB MUKHERJj:E: It has SHRt ATAL BIHARI VAJPAYEE not yet come into force. Let is come into (lucknow): Mr. Speaker, Sir, lobjecttot!1e force and then we will see. 171 Discussion Under Rule 193 MARCH 30,1994 Statement by Ministers 172

MR. SPEAKER: He says that he will MR. SPEAKER: Yes, please. cross the bridge when he reaches there.

[ Translation] 18.26112 hrs

SHRIATALBIHARIVAJPAYEE: Even STATEMENTS BY MINISTERS before crossing bridge we will be drowned. (ii),lmportant changes in the Export [English] and Import policy, 1992·97

I, SHRI PRANAB MUKHERJEE: Let us THE MINISTER OF COMMERCE to the bridge. We have not yet reached the SHRI PRANAB MUKHERJEE: I bag to lay bridge. We are faraway from the bridge. Let on the Table a Statement containing us reach the bridge and then we will see. important changes in the Export and Import Policy, 1992-97 as on 30-3-1994. [Translation] {English] SHRI ATAL BIHAR I VAJPAYEE: This reply is not satisfactory. You have accepted STATEMENT that for enacting laws in this regard the Government will have to come to the Hon'ble Members are aware that the Parliament. Our protests are on and even new Export and Import Policy was announced walk our will not resolve the issue. We stage on 31 st March 1992 for the five year period walk out and announce that our protests will (1992-97). Subsequently, on 31st March continue. 1993 I informed the House of the changes mat we had made in the Export and Import 18.26 hrs Policy for the year 1993-94. In the revised poliey special attention had been paid to the Thereafter Shri Atal Bihari Vajpayee growth of exports in the agriculture and and some other hon. Members left the . allied sectors and I am happy to inform you House. that those measures have yielded handsome dividends and our exports in the agriculture {English] and allied sectors have grown by 45.3% during the last one year. MR. SPEAKER: I must say that all the hon. Members partiCipated in this debate in Another important liberalisation a very thoughtful manner and cooperated measure announced last year was the also. They deserve our congratulations. deletion of 144 items from the negative list of exports in order to give an impetus to our MR. SPEAKER: The second item on trade. Our exports have responded well to the Agenda is a Statement by Minister. these changes and show an encouraging growth about 21 % in dollar terms during the THE MINISTER OF COMMERCE first eleven month of 1993·94 as against a (SHRI PRANAB MUKHERJEE): Can I lay it growth rate of 3.8% in 199293 and negative on the Table of the House, Sir? growth of 1.5% in 1991-92. What is more heartening is that this step up in export 173 Statement by Ministers CHAITRA 9,1916 (SAKA) Statement by Ministers 174 growth has bt'len broad-based and spread the important changes being made in the across tha entire range of export items. The EXIM policy effective from today. With a important challenge forthe f~ture is toensure view to givp. some more incentives ((' that the tempo of export growth aChieved in exporters having a proven track record in 1993-94 is not only sustained but exports, the list of imports under the Special accelerated. Import Licences is being expanded. However, while doing so, I have taken care Maintaining a healthy export growth is not to allow items being produced in the a prerequisite for continued viability of the country under the rest::rvation policy for the country's Balance (;[ Payments (BoP). small scale sector. In order to provide Exports can also become the engine of recognition and accord a place or pride to industrial recovery in the country by exporters who have performed well and extending the markets for the goods and ha"e the potential of doing even better. a services produced in the country. For exports new category of Super Star Trading Houses to play this crucial role, we must ensure th<1t is being introduced. Duty Exemption Scheme mlr goods are internationallY competitive in is being further simplified and input-output terms of price, quality and sustain ability. it norms have now been finalised for 3383 is good that exports have now been items as against 2;':00 on 31 st March, 1991 recognised as a national priority. Slowly, we This will help in rendering efficient service to are beginning to think in terms of producing the exporting community. for exports ratherthan exporting whatever is produced. This strategic shift can be Deemed Exports sustained if we eliminal0 all procedural hurdles being faced by exporters. In order to strellgthen our industrial base, some more facilities are being given to It is with these objectives in view that we indigenous manufacturers. Hereafter, the are making further changes to liberalise duty Free Licence holders will be able to Export and Import Policy. These changes source their yoods from local manufacturers also reflect the results of our intensive instead of ilT,porting the same with an added interaction with the trade and industry and advantage of Deemed Export benefits. The experience we have gained in imolementing facility of Advance Release Order has also the policy over last two years. been extended to Special Imp rest Licences. Advance Intermediate Licences. TransferrE'rl Special attention has been paid to the Advance Licences and Sensitive list items in simplification and streamlining of the terms of value. Additional 20% flexibility procedural aspects of the EX 1M policy. These permissible on Sensitive List items on Value changes have been 'llade on the basis of the Based Licensing will now be permitted on recommendations made by a Committee Advance Release Orders also. We also set up for this purpose. While making propose to give Specldl import Licences at changes in the policy, care has been also the rate of 5% of FOR value of supply to taken to fully protect the interests of small Deemed Exporters who do not avail of the scale industry which contributes 40% to our facility of the Duty Exemption Scheme. export basket and provides employment to over 1.35 crore people. EPCGSch&me

Export and Import Policy In order to pro~ide quick and efficient service to the exporters, the powers to grant I would how like to inform the House of EPCG li·::ence, presenttv centralised in tll~ 175 Statement by Ministers MARCH 30, 1994 Statement by Ministers 176

[Sh. Pranab MukherJee) Licensing Committee can also permit licences upto Rs. 10 crores, where norms Office of the Director General of Foreign have been fixed. The earlier limit for Trade. have b.een decentralised. Regional granting licences at 125 per cent of last Offices can, henceforth. permit inports upto year's exports has been enhanced to 150 Rs. 25lakhs. For fulfilment of the obligation per cent under production programme. under this scheme. third party e~ports have Regional Licensing Authorities can now been permitted and the obligation shall be regularise shortfall upto 5% in value terms. based on the exports of same prOduct havir. J nexus with the imported Capital Goods. Legal Undertaking IBank Guarantee Duty Exemption Scheme To ensure cost effectiveness and in Duty Exemption Scheme has been an order to make the life of exporters less important instrument of our eXiJorts for the bothersome, Legal Undertaking has been past many years. A few cases of misuse further rationalised. LUT limit granted to under Value Based Advance Licence Export Houses 1 Trading Houses 1 Star Scheme have come to our notice for which Trading Houses which was 3 times of the appropriate action is being taken by the last year's exports will now be 5 times and in Government. However, a marginal misuse respect of other exporters, LUT limit has by unscrupurous elements should not be been enhanced to 2 times from 1112 times allowed to create hardshir for the large permitted earlier. Unlimited LUT facility has number of genuine exporters. V31ue Based now been extended to Super Trading Advance Licensing Scheme has also its own Houses. merits. The Scheme is therefore, being continued with safeguards. Procedures Exporters under advance Licence have been simplified under the Duty Scheme can now give the Bank Guarantee Exemption Scheme. Minimum value addition in two parts in respect of licences issues for under the Advance Customs Clearance a value of Rs. 1 crore and above. In other permit has been reduced from 15 per cent to cases they can replace their original Bank 10 per cent. Third party exportsunder the guarantee with a reduced value after Scheme wlil now be permitted. With a view completing 50 % of exports. to rendering quick. efficient service to the exporting community, four Zonal licensing The requirements of supporting committees have been set up at Delhi. manufacturer to L)e Indicated in the DEEC Bombay, Culcutta and Madras, which will Book has been dispensed with. Licence permit licences upto Rs. 1 crore in respect of holders under the DES Scheme are now cases where norms have not yet been fixed. fully responsible for the import of items and Regional Licensing Authorities will continue its export obligation. They can have materiel to issue Repeat Licensing till the norms are proce~s03d through any of the units including fixed by the Special Advance Licensing jobbers. In case the original buyer has Committee. Revalidation and export cancelled the order, the exporterunder the obligation procedures have been further Duty Exemption Scheme can now export to streamlined by perrllitting ;'egional Offices any other buyer abroad without asking for .0 allow extension up to 12 months. Regional specific permission from D.G.F.T . 177 Statement by.Ministers CHAITAA 9,1916 (SAKA) Statement by Ministers 178

Special Import Licences forOvefseas Tr~ding. and (d) Special Import Licences a: enhanced rate. The incentive provided to the expol iers by way of Special Import Licences was not Certain types :·f service exports like serving the desired objective and E:9 software, professional services rendered premium on these freely tradable Special abroat:l including overseas consultancy Import Licences had dropped to very low service contracts will now be counted lev~ on account of general import towards the eligibility of Export Houses/ liberalisation. Necessary impetus and Trading Houses/StarTrading Houses/Super incentive to our exporters at this crucial Star Trading Houses. juncture to sustain our export efforts is of paramount importance. Tomakethe Special Facilities to HandicapPGd persons Import Licences financially more attractive, a number of items relating to health care, While making changes in the Export sports communication and office equipment, and Import Policy, we have also kept in view some Con'sumer goods/Consumer durable the needs of handicapped persons. They not reserved for SSI units. and components are now permitted to import cars fitted with are now being permitted for import through special controls. Items relating to Special Import Licences. All existing valid computerised Braille printing presses, Text licences and the ones Issued hereafter wi!1 Aeading System for Visually Handicapped, be eligible for import of these items on Aspherical lenses of magnification like payment of normal customs duty. However, spectacie magnifier, hand held magnifier Gold and Silverwill now be importable against and table magnifier will now be permitted to Special Import Licences on payment of be imported freely. Similarly, artiticiallimbs confessional rate of Customs duty in foreign for physically handicapped and disabled exchange, as applicable to incoming and Frequency modulated hearing aid passengers, by the holders of EEFC account. systems for hearing h:mdicapped persons in group situation will also be freely importable Super Star Trading Houses to make their life comfortable.

While the contribution of the small Import of Second Hand Machinery exporters in the country's export development programme is fully appreciated, Underthe simplified policy, second hand top exporters of the country have to be capital goods can now be imported by Actual accorded appropriate recognition anJ Users at normal duty without obtaining a encouraged to further raise the level of their licence, provided thA second-hand capital' performance. A new category of Super Star goods have a minimum residual life of five Trading Houses has been created and all years. The condition of maximum 7 years those exporters with trade tumover of As. age as well as submission of Chartered 750 Crores average FOB during the EngineerCertificate forthe importrefsecond- preceding 3 licensing y(~lrs or As. 1000 hand machinery has been dispensed with. Crores during the preceding year are eligible However, in case of machinery of value to become the Super Star Trading Houses. exceeding As. 1 crore, certification of value Such Trading Houses will be entitled to the by reputed Intemational Certification Agency (a) Membership of APEX Consultative has been prescribed. This step will not Bodies concemed with Trade Policy and affect the !ndigenous machinery promotion, (b) representation in important manufacturers as the import continues to be business delegations, (c) Speci.ll permission restricted to Actual User only but at the 179 Statement by Ministers MARCH 30, 1994 Statement by Ministers 180

ISh. Praroab Mul:herjee] EOU / EPZ / EHTP same time it will provide freedom of the EOU I EPZ sector constitutes an commercial judgement to the industry either important area of India's export endeavours. to source their requirements from indigenous In order to bring in greater flexibility to this sources or to irl'rJrt the second - hand sector EOU / EPZ scheme has been capital goods. harmonised with other export promotion schemes like EHTP, which provides greater Negatiw;? Li:;t pruned flexibility in operations for electronic units in regard to minimum value addition and Unde~ the current Export and Import domestic access. Areas of activity in EPZs policy, import of capital goods, raw materials, have been broadened by providing for intermediates, components. consumable, trading, re-export after repacking and spares, parts, etc. is freely aliowed except labelling and also repairs, reconditioning consumer goods and a few items of raw and re-enginp.ering. The requirement of materials and components. Some prio,r approval of Development components required for the manufacture Commissioner of EPZs for inter-unit transfer of finished products in the electronic industry has been dispensed with. Debonding have been taken out of the Negative List. modalities have been liberalised and Fisherman can now import Out Board Motors procedures for third party exports by EOU freely. Relaxation has been provided forthe / EPZ units have'been further simplified. import of prototypes/samples for product development. For the import and export of In conclusion, let me say that we attach items which are not covered by the Negative great importance to export facilitation and Lists of Exports and Imports, the restriction support all the efforts made by the exporting of value addition, etc. which was acting as fraternity in order to place India at Centre an irritant has been removed. To provide stage in the multilateral trading set up. The matching facilities to the foreign exhibitors exporting community will continue to receive participating in International Fairs/exhibitions our full support to ensure that our present being held in India. facility to sell items of achievements act as spring board to put us Restricted List upto a c.Lf. value of Rs. 5 on the fast track so far as exports are lakhs on payment of normal Customs duty concerned, making India a major player in has been provided. international trade ..

Export of items reserved for SS! sector [English]

In order to strenglhen the export (iii) Incident at 2, Field Ordnance production base, manufacturers of items Depot, Sri nagar reserved for SSI sectors, are permitted to increase their capacity byway of investment THE MINISTER OF STATE IN THE in plant and reqirpment beyond Rs. 751akhs MINISTRY 01= DEFENCE (SHRI provided they undertake a minimum export MALLIKARJUN): Mr. Speaker, Sir, It is with obligation of 75% of their annual production. a deep sense of sorrow that I inform the Registration of such units 'llill be permitterl House of a tragic inCident on the 29th March, by the Secr~tariat for Industrial Approvals 1994, in which 13 f)Grsonnel of the Indian and discharge of the relevant expolt Army including a Maj. Gen and one civilian obligation shall be monitored by D.G.F.T. tost their lives. 181 Observation by CHAITRA 9,1916 (SAKA) the Speaker 182 explosion followed by a fire took place in 2 istrar of the Suprime Court of India (Civil Field Ordnance Depot (FOD), Srinagar, in a Original Jurisdiction) requiring to show cause separate enclosure housing arms and in connection with Case no. 6 of 1994, equipment captured from the terrorists in arising out of Writ petition No. 860/94 filed the Kashmir Valley. At the time of the before the Jodhpurbench of Rajasthan High explosion, the captured items were being Court and withdrawn tt"! the Supreme Court, shown to a group of officers. Due to the seeking to challenge the method of transfer prompt action by the Army, the fire was of judges of High Courts and appointments brough! under control before it could spread of judge of the Supreme Court and High and damage other items stored in the FOD. Court. As a result of the accident, eight officers including a Maj.General three JCOs, two (Interruptions) Other Ranks and one civilian were killed and ten persons injured. MR. SPEAKER: I do not know why it was sent to me. T-he FOD is located at Badami Bagh, the Cantonment area of Srinagar. The staff As per well established practice and of the FOD consists of both Army persons convention of the House, I have decided not and civilians. The FOD is well protected with to respond to the notice. The Minister of a fully co-ordinate three tier security State in the Ministry of Law, Justice and arrangement being provided by the BSF, Company Affairs is being requested to take the Defence Security Corps and the Army. such action as he may deem fit to apprise At or around the time of the accident no the Supreme Court of India of the correct militant activity, including firing of any kind constitutional position and the well was observed. A Court of Inquiry has been established conventions of the House. ordered. A team of experts has also been despatched to Srinagarto assist the inquiry. And that the Speaker is not responsible for the transfer of judges! IThank you, very 18.29 hrs. much.

OBSERVATION BY THE SPEAKER 18.30 hrs. {English] (The Lok Sabha then adjourned till MR. SPEAKER: I have to inform the Eleven of the Clock on Monday, April 18, House that on 18th March, 1994, a notice 19941Chaitra 28, 1916. (saka) has been received from the Assistant Reg-

Printed at: S. Narayanan & Sons, New Delhi -20