India gradually reduces tariffs on 80% of Chinese products?

Release time:

2019-10-13

According to India's "Economic Times" report on the 28th, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) is conducting the latest negotiations in Vietnam. The Indian government is in contact with the main negotiating parties of RCEP to discuss details such as tariff reduction and exemption. The report quoted an official as saying that after signing RCEP, India may gradually reduce tariffs on 80% of Chinese products. "This compromise is less than that of other countries." For example, India plans to reduce tariffs on 86% of Australian and New Zealand goods. 90% of ASEAN, Japan, and South Korea.

The report quoted unnamed Indian officials as saying that discussions between India and China are "still ongoing" and that in the future, tariffs may be "immediately eliminated" on 28% of goods from China, while the remaining 72% of goods will be gradually reduced in 5 years, 10 years, 15 years and 20 years. This will give India time to strengthen its domestic manufacturing sector, the Economic Times said. Last week, the government reduced the corporate tax on new manufacturing businesses to 15 percent to attract investment.

"India should join RCEP, but there must be a better agreement to safeguard its interests." The Indian Express published an editorial on this topic on the 28th, saying that the RCEP negotiations have entered the final stage and are currently accelerating the progress of the negotiations, and strive to be in November this year. Complete the negotiations before the end. India's steel, dairy and other industries have openly opposed India's accession to RCEP, fearing that the industry will be affected. However, Indian Minister of Commerce and Industry Goyal said a few days ago that India's refusal to join RCEP will put "the export industry at a disadvantage" and that national interests cannot be held hostage by individual industries and must be viewed from an overall perspective ". This is seen as a strong signal that India will sign the RCEP. Even without a free trade agreement, China has market advantages in many areas. "Therefore, the tariff phase-out needs to be longer than the previous free trade agreement, extending to 15-20 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 the 2018-19 fiscal year was as high as $53.6 billion. According to the report, India's request for the introduction of a "trigger mechanism" in the agreement has made progress. If a certain type of goods suddenly enters the Indian market and constitutes dumping, India has the right to take temporary tariff increase measures on goods from the country.

(Source: China Cotton Textile Industry Association)

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