India is caught in a cleft stick on trade front. Uncertainty in revival of demand for goods and services worldwide coupled with threats to impose non-trade barriers by US and Europe, besides widening imbalance in trade with China seems to have flummoxed tradepolicymakers.

But commerce secretary Rahul Khullar, a seasoned bureaucrat and IAS officer of 1975 batch, is confident of getting Indian merchandise exports back on track and take on western powers.

In an interview with Khullar explains the short-term approach and long-term view. Excerpts:

US senate climate bill proposes to impose green tax on developing econ­omies like India and Ch­ina? What is India’s stand on that?

The bill has not yet gone through. The question is would the US government ever do such a thing? Proposal on the table is to target only China and India. It will never be passed. Question to ask here is, will they impose cap and trade system. My guess is yes. Will they impose a carbon tax? I think no. Americans are most opposed to carbon tax. Europe is more in aggressively in favour of carbon tax. But you never know what political compulsions they have. What you need to ask

is that India ready for border measures? My answer is I am ready. If you want to impose carbon tax, I’ll see what to do. I’ll take you (US and EU) to WTO and question it. Who has imposed carbon tax? No one.

India has one of the largest trade imbalances with Ch­ina, what are we doing to correct this imbalance?

We have raised the issue with China. I went there in January 2010. I gave them a paper and told them to fix it. We have to give them time to do. They are far more flexible now. They have much at stake. They are sensitive to our concerns. If they don’t do something then we’ll raise it to the next level.

Is Doha round of WTO negotiations more or less lost?

No not lost. They will meet again. But I think opportunity is slipping by. Get to modalities by July or August, no later, and you can close the deal. Only a few months are left now. It is slowly slipping away. It is time for the US to take a lead.

The government had proposed to organise four 'Made in India' goods

shows to promote merchandise exports? Are they on?

There should be one in Johannesburg in August 2010. There will be gems and jewellery show in Mumbai, one textile show in Delhi. There will be two India based ‘Made in India’ shows. There will be two more towards the end of the year. Decisions have been taken on this.