bilateral trade Current Affairs - 2019
Category Wise PDF Compilations available at This Link
The United States is reportedly considering withdrawal of benefits to India under its Generalised System of Preferences amid a widening dispute over its trade and investment policies.
The US Trade Representative (USTR) is in the process of completing the review of India’s status as a GSP beneficiary and an announcement was expected over the next two weeks.
The withdrawal of the Generalised System of Preferences from India could be the strongest punitive action since President Donald Trump took office in 2017 vowing to reduce the US deficit with large economies. The Trump administration has repeatedly called out India for its high tariffs.
Generalised System of Preferences
Generalised System of Preferences instituted in 1976 under the Trade Act of 1974 is a U.S. trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.
Impact on Trade with India
The withdrawal of the Generalised System of Preferences from India would result in the elimination of duty-free access for about 2,000 Indian product lines. This will hurt small businesses such as jewellery. This will adversely affect Indian exports to the US. After the withdrawal of the Generalised System of Preferences number of goods qualifying for preferential treatment could be reduced, or the whole programme could be withdrawn.
India and China signed protocol on hygiene and inspection requirements for exports of fish meal, fish oil imports from India to China. It was signed as part of discussions between India’s Commerce Ministry and six-member Chinese delegation led by Vice Minister, General Administration of Customs of China, Hu Wei on easing market access for exports of various farm products held in New Delhi.
Highlights of meeting
Both Indian and Chinese sides appreciated each other’s concerns and agreed to resolve market access issues expeditiously to achieve the vision of the leaders of both the countries by promoting a more balanced trade. Chinese delegation also discussed issues regarding market access for Chinese products such as milk and milk products, agricultural goods like soy meal, fruits and vegetables, tobacco and pharmaceuticals.
Protocol on hygiene and inspection requirements
This protocol for export of fish meal and fish oil from India to Chin is significant as India has been seeking market access for these items from China. It will enable India to commence export of fish meal and fish oil to China. China imports fish oil to tune of USD 143.29 million per year and fish meal worth US $263.43 million. It had so far not allowed these exports from India. This is the second Indian product to get clearance from China in the last six months. Earlier, during meeting of two countries in Wuhan, China protocol for Indian rice export to China was signed paving way for export of Indian rice to China.
Tags: Adulteration • bilateral trade • China • East Asia • Exports • Fish Imports • Fishery Sector • Food and drink • India • India-China • National • Protocol on Hygiene and Inspection • Rice • Trade • Tropical agriculture • World