The leeway to withdraw subsidies was meant for those developing nations which in 1995 had GNI in excess of $1,000 per capita. It can’t be availed by India, which is in a different category The Coronavirus pandemic played havoc with the economy of the country during the first half of last year. However, exports were beginning to look up in March — touching a record $34 billion which was higher than $33 billion in March 2019 — and signalling a sharp increase during the current fiscal. But now, the exporters face a triple whammy. First, they have not received export benefits worth approximately Rs 35,000 crore under the Merchandise Export from India Scheme (MEIS). Under the MEIS, which was withdrawn...
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Category: Agreement on Industrial Trade (AoIT)
Trade policy – India needs to open up
In a report on developments in India’s trade policy on the occasion of the seventh Trade Policy Review of India during January 6 – 8, 2021, World Trade Organization (WTO) has noted “export restrictions and import prohibitions imposed by India seem to be in contradiction with its main trade policy goal, of increasing its share of global exports from 2% in 2015 to 3.5% by 2020”. Four areas which have come under WTO focus are (i) high import tariff and frequent changes thereof, minimum import prices and other import restrictions; (ii) export taxes, export restrictions/licensing; (iii) frequent use of anti-dumping measures; (iv) high subsidies and need to reduce these to free up resources for investment particularly in development of the infrastructure....
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No big deal
Staying clear of the optics and bonhomie on display all through the US President’s recent visit to India , one gets a sense that the road to even a limited trade deal is thorny Prior to the maiden visit of US President Donald Trump to India, there was a sense of dejection about the possibility of the US and India signing even a limited trade deal, leave aside a major one. This is to be seen in the backdrop of the absence of United States Trade Representative (USTR) Robert Lighthizer from the delegation. Earlier, too, Lighthizer had cancelled a visit to New Delhi when he was scheduled to wrap up discussions on a trade agreement. However, the mood was buoyant at the...
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Trade deal – forget big, even mini unlikely
Prior to the maiden visit of President, Donald Trump to India [February 24 – 25, 2020], there was a sense of dejection about the possibility of US and India signing even a limited trade deal not to talk of a ‘big deal’. This is to be seen in the backdrop of the United States Trade Representative [USTR], Robert Lighthizer [the point man who has the onerous responsibility of formulating US trade policy and negotiating trade pacts with countries world-wide] not being part of the delegation. Earlier, Lighthizer had cancelled a visit to New Delhi when he was scheduled to wrap up discussion on a trade deal. However, on conclusion of the visit, the mood is buoyant. This was reflected in...
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Shed the protectionist mindset
Keeping in mind the criticality of being an integral part of the global supply chain to achieve a $5 trillion economy, India needs to reconsider its decision on RCEP The Regional Comprehensive Economic Partnership (RCEP) is a conglomeration of 10 members of the Association of South East Asian Nations (ASEAN) viz. Malaysia, Indonesia, Thailand, Vietnam, Singapore, The Philippines, Myanmar, Brunei, Laos and Cambodia plus six others viz. Australia, New Zealand, Japan, South Korea, China and India. If it really sees the light of day with all 16 members intact, the group will cover 3.6 billion people or almost 50 per cent of the world’s population and account for nearly 40 per cent of the global GDP (Gross Domestic Product). India is...
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RCEP – shed protectionist mindset
The Regional Comprehensive Economic Partnership [RCEP] is a conglomeration of 10 members of the Association of South East Asian Nations [ASEAN] viz. Malaysia, Indonesia, Thailand, Vietnam, Singapore, Philippines, Myanmar, Brunei, Laos and Cambodia plus 6 others viz. Australia, New Zealand, Japan, South Korea, China and India. If, it materializes [29 negotiation rounds have already been held since start in 2012], this will be a giant group covering a population of 3.6 billion or 50% of the world and GDP [gross domestic product] at US$ 25 trillion or nearly one-third of the global. During the Summit of ASEAN held in Singapore last year [November 11-15, 2018], prime minister, Narendra Modi had called for early conclusion of the process so that the...
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Join WTO e-com talks, have a say in global rules
As many as 76 members of the World Trade Organisation (WTO) — nearly half the WTO’s membership — have begun a process of framing rules governing cross-border e-commerce. The initiative is being spearheaded by the United States, China, the European Union and Japan — the four largest trading nations in the world economy — and has the tacit support of leading multinational companies (MNCs) in the e-commerce space such as Amazon, Walmart/Flipkart and Alibaba. India has strongly objected to the move. The objection stems primarily from an apprehension that in the event of India being a part of the negotiations, it will have to commit itself to harmonised WTO rules on e-commerce which will take away the ‘policy space’ currently...
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WTO talks on e-commerce – why India must join
As many as 76 members of the World Trade Organization [WTO] who constitute nearly half the WTO’s membership have begun a process of framing rules governing cross-border e-commerce. The initiative is being spearheaded by the United States, China, the European Union and Japan – the four largest trading nations – and has the tacit support of leading multinational companies [MNCs] viz Amazon,Walmart/Flipkart, Alibaba etc in the e-commerce market place. India has strongly objected to the above move ostensibly on the ground that the WTO being a multilateral body wherein all decisions regarding international trade and investment are taken by consensus involving all members, the agenda cannot be driven only by a section of the membership. This may be sheer posturing....
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Handling Trump’s trade googly
President, Donald Trump has threatened to withdraw the over 5 decades old special dispensation viz. the Generalized System of Preferences [GSP] under which the USA imports goods mostly textiles from India at ‘zero’ customs duty. This would affect exports from India worth US$ 5.6 billion or about Rs 40,000 crore. The latest missive is in continuation of a series of actions taken against countries world-wide [including India] under his much hyped agenda of “Buy American, Hire American”. Some of these actions having far reaching ramifications include:- (i) rejecting the demand of developing countries for finding a ‘permanent solution’ to stock-holding for food security despite a decision to this effect at the 9th WTO ministerial held in Bali [2013]; (ii) dumping...
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RCEP – India can’t afford to miss
At the recently concluded ASEAN [Association of South East Asian Nations] Summit in Singapore [November 11-15, 2018], prime minister, N Modi called for early conclusion of the Regional Comprehensive Economic Partnership [RCEP] agreement to facilitate signing of the deal by early 2019. The RCEP is a conglomeration of the 10 members of ASEAN [Malaysia, Indonesia, Thailand, Vietnam, Singapore, Philippines, Myanmar, Brunei, Laos and Cambodia] plus 6 countries outside the group viz. Australia, New Zealand, Japan, South Korea, China and India. This will be a giant grouping covering a population of 3.6 billion or 50% of the world and GDP at US$ 25 trillion or nearly one-third of the global. Under Modi’s Act East policy with focus on promoting economic cooperation...
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