India seeks to protect the market of Chinese products

NEW DELHI: The government is seeking to reduce import duties on fewer Chinese products or to eliminate tariffs over a longer period, in order to contain a possible increase in imports from the country. on the other side of the border after the entry of the two Asian economies in 16 regional agreement of global economic partnership (RCEP) with the country, aiming to create the largest block of free trade in the world.

"India is looking for a reciprocity that is not complete and the Chinese side understands it," said a source who did not want to be identified. This means that India is willing to reduce or eliminate tariffs on less goods imported from China or gradually reduce tariffs over 20 to 25 years, while Beijing reduces tariffs more quickly.

The government agreed to reduce and ultimately eliminate import duties on 80 to 86 percent of imports from China, Australia and New Zealand, while coverage will be 90 to 92% for countries with which India already has a free trade agreement with Japan, South Korea and the 10 ASEAN members.

It is to be feared that the mbadive trade deficit with China, estimated at $ 63 billion last year, increases after the signing of the RCEP agreement, with India having to be forced to do so. Authorize duty-free or less significant imports from the other side of the border. Already, Chinese products have invaded the market in several segments, ranging from mobile phones and clothes to the idols of Ganesh and Lakshmi sold around Diwali.

As negotiations enter the final round before the agreement is finalized by 2019, discussions will focus on China, with officials from both sides having extensive discussions early in the year. month and another cycle is planned soon. "These discussions will determine the course of the RCEP," said one official.