Exports Current Affairs - 2019
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India’s export to China is expected to reach an all-time high in the financial year 2018-19.
Increase in Exports
The increase in the exports to China is attributed to US-China trade spat creating new opportunities for exporters and Beijing removing some trade barriers in its effort to check the growing bilateral trade imbalance.
The growth of exports was driven by the following sectors which include marine products, organic chemicals, plastics, petroleum products, grapes and rice.
Bridging the Trade Deficit
Indian exports are expected to reach an all-time high in the current financial year. The exports between April and December stood at $12.7 billion which is closer to last year’s exports of $13.33 billion.
India feels that more efforts are required for greater market penetration in China to bridge the trade deficit. India’s trade deficit with China stood at $63 billion in 2017-18. This $63 billion trade deficit was more than a third of India’s total trade deficit. The exports to China stood at $13.3 billion and imports from China stood at $76.38 billion in 2017-18.
Acknowledging the need to take steps to check the deficit, the following steps have been initiated to bridge the deficit:
- China signed three export protocols with India on rice, fishmeal and tobacco to allow imports of the three items.
- An announcement regarding Chinese import quotas for sugar and rice for 2019 is expected soon which would aid in planning their exports well in time.
- India is also expecting to sign a protocol for export of Indian soyabean meals, cakes and pomegranates to China in the near future.
To make the most of the US-China trade dispute, the Department of Commerce had taken the initiative to identify and share with Indian exporters and other stakeholders, specific lines where the US will lose competitiveness in China and where India had an export potential.
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