Embassy of India
Beijing
Press Release
Aug 4, 2009
In
recent weeks, there have been some articles in Chinese print media on
protectionist measures adopted by countries including India against Chinese
goods. In this regard, this Embassy would like to put forward the following
points which may help in having a more comprehensive and balanced understanding
of the issue:
i) According
to the figures provided by China Customs, India-China bilateral trade in 2008
totalled US$ 51.8 billion, which was an increase of 34% year-on-year. In 2008,
Indian exports to China touched US$ 20.3 billion, rising by 39% over the figure
for 2007. Chinese exports in the same period have expanded by 31% to reach US$
31.5 billion. In the last five years, the total value of trade has increased
almost seven fold from US$7.59 billion in 2003 to US$51.85 billion in 2008.
This represents an increase of around 583%.
ii) During
the last five years, the Chinese exports to India increased from US$3.34
billion to US$ 31.51 billion which is nearly a tenfold increase. While the
export from India to China has also increased, it has been a fivefold increase
from US$4.25 billion in 2003 to US$20.34 billion in 2008. This would reinforce
the fact that bilateral trade has been increasing and rate of growth of Chinese
exports to India has been maintaining a steady pace. This can not happen in an environment of
protectionism or trade barriers. In fact in 2008, the growth rate of Chinese
exports to India stood at 31.21%, which was highest in the top ten destinations
of Chinese exports.
iii) The
global financial crisis has impacted the bilateral trade between our two
countries. In the first six months of 2009, bilateral trade stood at US$19.61
billion, which is a decline of 32% y-o-y. Indian exports to China in Jan-June
2009 stood at US$ 6.60 billion, declining by 50%. In comparison, the Chinese
exports to India during the first six months of this year stood at US$13.01
billion, declining by only 16%. The value of Chinese exports during this period
is double the Indian exports, which in turn is almost equal to the size of our
trade deficit with China during this period which stood of US$6.41 billion.
iv) There
have been some antidumping cases initiated by India against China. All actions
taken by India are as per the procedures and principles enshrined in the
national laws which are uniformly applied to imports from all countries
including China whenever there is a need for such measure. Indian regulations
apply uniformly and are not China specific. Besides, there is a legal framework
to deal with Anti-Dumping cases. The antidumping investigations are normally
initiated by the Directorate General of Anti-Dumping and Allied-Duties on
receiving a fully documented petition from the domestic industry with prima
facie evidence of dumping and the causal link between the dumped goods and
injury to the domestic industry. Anti- Dumping measures are trade remedy
instruments for ensuring fair trade and not measures to restrict competition.
The increasing trend in overall bilateral trade is a testimony that the
Anti-Dumping investigations have not hindered the bilateral trade and are
merely an instrument for ensuring fair trade in accordance with international
laws.
v) On
the other hand, the Indian side has some concerns especially with regard
long-pending market access for its agricultural products. The India-China
bilateral WTO agreement signed in February 2000 and the MOU on Application of
Phyto-sanitary Measures, signed in January 2002 during Premier Zhu Rongji’s
visit to India provides for cooperation and exchange of information in the
field of pest risk analysis and application of phytosanitary measures to
facilitate smooth trade in agricultural products especially fresh fruits and
vegetables. On the basis of these two agreements, the Indian side has sought
market access for 17 varieties of fruits and vegetables in the Chinese market.
This has been under discussion for almost a decade and market access has been
given to only three products out of a list of seventeen. In addition, the issue of market access
for basmati rice has been pending for a long time and Chinese side is yet to
send the technical team for assessment despite repeated invitations conveyed by
the Indian side.
vi) During
the meeting of the two sides early this year, the Chinese side had assured that
relevant technical teams would be sent from China and specific progress would
be seen soon. However, no progress has been seen with regard to giving market
access to India for fruits and vegetables.
vii) India has
several bilateral dialogue mechanisms with China, including the Joint Economic
Group at Ministerial Level, Joint Working Group on Trade at DG/Joint Secretary
Level and India-China Trade Remedy Cooperation mechanism at DG/Joint Secretary
Level. China has become the largest trading partner of India. Both India and
China have regular dialogue to discuss trade related issues. The Chinese
Vice-Minister of Commerce Mr. Gao Hucheng visited India in October 2008 and
another Chinese Vice-Minister of Commerce Mr. Zhong Shan visited India in March
2009. The trade and economic relations between our two countries are rapidly
becoming the bedrock for a more intensive engagement.
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Contact Person:
C. Naik | Second
Secretary (Information & Culture)| +86-10-6532 3313 |
fsic.beijing@gmail.com
Fax : +86-10-6532
4684
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