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    India Gradually Reduces Tariffs On 80% Chinese Products?

    2019/10/12 16:02:00 0

    India Tariff

    According to the India economic times 28, the regional comprehensive economic partnership agreement (RCEP) is being held in Vietnam for the latest negotiation. The India government is in contact with major RCEP negotiators to discuss details such as tariff reduction and exemption. The report quoted an official as saying that after signing the RCEP, India could gradually reduce tariffs on 80% Chinese products. "This compromise is less than other countries", such as India plans to reduce tariffs on 86% of Australia and New Zealand products, and to reduce tariffs on 90% of ASEAN, Japan and South Korea.

    The report quoted an unnamed India official as saying that discussions between India and China are still in progress. In the future, it is likely to eliminate "tariffs" immediately from 28% of China's goods, while the remaining 72% will be gradually reduced tariffs in 5, 10, 15 and 20 years. The economic times said it would give India time to strengthen its domestic manufacturing industry. Last week, the government reduced the corporate tax of new manufacturing enterprises to 15% to attract investment.

    "India should join the RCEP, but there is a better agreement to safeguard its interests". The India express issued a commentary on the topic 28 days ago. The RCEP negotiations have entered the final stage, and the progress of the negotiations is being accelerated, so as to complete the negotiations before the end of November this year. India iron and steel, dairy products and other industries openly oppose India's accession to the RCEP and fear that the industry will be hit. However, Goyal, Minister of Commerce and industry of India, said recently that India's refusal to join the RCEP would make the export industry at a disadvantage, and that the interests of the state could not be held hostage by individual industries, and that "national interests" must be viewed from a holistic perspective. This is seen as a strong signal that India will sign RCEP. The article says that even without FTA, China has market advantages in many fields. "Therefore, the phasing out of tariffs needs to be longer than the previous free trade agreements, extending to 15 to 20 years."

    According to the economic times, India has a trade deficit with 11 of the 16 RCEP members, and the trade deficit with China in fiscal 2018-19 is as high as 53 billion 600 million US dollars. The report said that India has made progress in introducing the "trigger mechanism" in the agreement, such as a sudden entry of a certain commodity into the India market and dumping. India has the right to take temporary measures to increase tariffs on goods from the country.

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