TED Case Studies
Number 787:
2005
by Emily A. Steele

Chanderi Silk
General Information
Legal Cluster
Bio-Geographic Cluster
Trade Cluster
Environment Cluster
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I. Identification

1. The Issue

Chanderi silk from India is the result of traditional methods of hand-weaving that have been developed over the centuries, and passed down through generations. Chanderi silk is considered the fabric of choice for saris produced for royalty, due to its light-weight quality and intricate designs. The production of this textile is specific to the town of Chanderi and has been protected by the Indian government as a geographic indication. India has petitioned the World Trade Organization for recognition at the international level as well.

2. Description

The town of Chanderi is located in the state of Madhya Pradesh in India. This area is located in the middle of the country and is characterized by dense forests and varying topography. The recorded history of Chanderi dates back to the 11th century and is marked by its location close to two other Indian states, Rajasthan and Uttar Pradesh. Chanderi was also centrally located on ancient trade routes and its culture and traditions are the result of a mix of external influences.

These geographic and cultural influences are depicted in the silk produced in Chanderi.

The methods have developed over time to reflect various methods of weave and silk thread availability.

Chanderi is produced using three raw materials: cotton, silk thread, and zari. All of these materials are imported from other regions in India, as well as China, Japan, and Korea. The colors of Chanderi silk come from both natural as well as chemical processes. Currently, chemical dyes are preferred due to their fast-acting quality. Traditional looms are still used as the primary means of production. These include pitlooms, dobby, and jacquard looms. The hand-woven silk has a light, sheer quality that sets it apart from textiles produced en masse in factories.

3. Related Cases

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BASMATI - This case discusses the dispute that occured when an American company (RiceTec Inc.) received a patent to call a version of aromatic rice produced in the United States "Basmati," a term that India considered a geographic indicator of the rice produced there.

RUGMARK - This case explains Rugmark, a voluntary labeling program that orginated in India to indicate rug products that were not produced with child labor.

FAIRTRADE - This case discusses trade issues related to Ecuador and internet commerce, especially the trade of indigenous handicrafts.

4. Author and Date

Emily A. Steele, May 2005


II. Legal Clusters

5. Discourse and Status: India has protected the Chanderi process at the national level, and has sought protection at the international level as a recognized geographic indicator.

There are several World Trade Organization agreements that are applicable to the case of Chanderi silk.

The Agreement on Technical Barriers to Trade indicates that there should exist a code of good practice for the preparation, adoption, and application of standards. Application of this aspect of the agreement would allow for the standardization of the traditional production process for Chanderi silk, which would increase the amount of silk produced while respecting traditional methods and thereby make the product available to a larger market resulting in a larger profit for the people of the region.

Section 334 of the Uruguay Round Agreements Act changed the rules of origin as it applies to textiles and clothing products. Previously these products were considered industrial and therefore processes that occurred in other countries could change their country of origin labeling. Under Section 334, "fabrics are deemed to originate in the country where they were formed in the greige state (textiles that have not been bleached, dyed, or finished after production, also known as loomstate for woven goods) by weaving or knitting. Dying, printing and other finishing operations that are ordinarily performed to turn greige fabric into a useful article of commerce no longer confer origin." This amendment to the agreement also includes non-apparel products as originating from the country where the greige fabric was produced. Chanderi silk is therefore protected under Section 334 against the use of its name for silk that is produced in other regions or countries.

The Agreement on Trade Related Products of Intellectual Property Rights Including Trade in Coounterfeit Goods states that in regard to geographic indications, all parties must provide means to prevent the use of any indication, which misleads the consumer as to the origin of goods. Also, provisions were made for further agreements for a multilateral system of notification and registration for wines. This agreement sets in motion the process for geographic indication registration, which would eventually be expanded to protect products other than wines and spirits.

The Trade and Development Act of 2000, in section 405 (Amendment to Section 334) states that "specifically, the section provides that for silk . . . origin is conferred by dyeing and printing and two or more specified finishing operations . . . and that for certain textile products excepted from teh assembly rule, origin is also conferred by dyeing and printing and two or more specified finishing operations, subject to certain exceptions." Section 405 specifically deals with the case of Chanderi silk as a product that qualifies for certain protections under the Agreement onf Rules of Origins.

 

6. Forum and Scope: The World Trade Organization and Multilateral Agreements

7. Decision Breadth: India is seaking product protection for Chanderi silk.

8. Legal Standing: Please see treaties and agreements discussed above.


III. Geographic Clusters

9. Geographic Locations

a. Geographic Domain: Asia

b. Geographic Site: Southeast Asia

c. Geographic Impact: India

10. Sub-National Factors: Yes, Village of Chanderi

11. Type of Habitat: Tropical


IV. Trade Clusters

12. Type of Measure: Intellectual Property

13. Direct v. Indirect Impacts: Direct

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: Yes, Silk

b. Indirectly Related to Product: No

c. Not Related to Product: No

d. Related to Process: Yes, Intellectual Property

15. Trade Product Identification: Chanderi Silk

16. Economic Data

Due to small amount of silk that is produced, there is very little economic data. The production of Chanderi silk employs approximately 60% of the village population. In order to protect themselves from against market forces, many of the local weavers have formed cooperatives which set standards for the price and quality of the products available.

Also more generally, textiles that are produced in Asia are most often exported to Africa and the Middle East.

17. Impact of Trade Restriction: Low

18. Industry Sector: Textiles

19. Exporters: India

Importers: Various countries import Chanderi silk via Internet sales websites. Due to the relatively small amount of product available, large-scale importing is not a reality.


V. Environment Clusters

20. Environmental Problem Type: Intellectual Propert

21. Name, Type, and Diversity of Species: Not applicable to case

22. Resource Impact and Effect: Low

23. Urgency and Lifetime: Low

24. Substitutes: There are various types and qualities of silk available on the international market, however, Chanderi silk is a specific process and product of its region.


VI. Other Factors

25. Culture: Yes, Traditional Methods of Handicrafts

26. Trans-Boundary Issues: No

27. Rights: No

28. Relevant Literature

There is very little literature on the topic of Chanderi silk. Most of the information for this case study was taken from Internet resources. The most helpful of which include:

Madhya Pradesh State Tourism Corporation

ChanderiCluster.org

indiatogether.org