With an eye on China, India plans to raise barriers to Asian imports

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The government is also concerned about significant trade flows from South Korea (Representation)

New Delhi:

India is considering measures to prevent its trading partners, mainly in Southeast Asia, from redirecting Chinese goods to the low-value country, two government sources told Reuters news agency, amid the links. tense with Beijing and a push for self-sufficiency.

The government plans to raise the quality standards of imports, impose quantity restrictions, impose strict disclosure standards and launch more frequent checks at points of entry for goods from many countries of the world. ‘Asia, officials said.

The measures will mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among others, added the responsible.

Last week, the Commerce Department issued a notice to restrict inbound shipments of televisions by requiring importers to obtain a special license. These measures are expected to affect mainly Malaysia, Thailand, Vietnam and Singapore – members of the Association of Southeast Asian Nations (ASEAN) with which India has concluded a free trade agreement (FTA). .

The government is also concerned about the large trade flows from South Korea. “Increasing tasks has limited impact,” said one of the officials.

“Now we want to raise the quality standards and also make sure that the goods on the FTA routes have roots in these countries so that the customs are more vigilant than before.”

The Commerce Department did not immediately respond to an email seeking comment.

The government will also discuss increasing the value-added requirement for products imported from these countries from the current level of 20% to 40%, the official said, adding that FTAs ​​could also be revised.

“Many Asian partners have become a place where only Chinese goods leave. We will be going product by product to design various types of actions, most of which will be on non-tariff lines,” the official added.

India has long had a difficult relationship with China, and a border dispute turned into the worst clash in decades in June, in which 20 Indian soldiers were killed.

China is also India’s second-largest trading partner, with trade worth $ 87 billion in the fiscal year ending March 2019, and a trade deficit of $ 53.57 billion in favor of China, the most important that India has with all countries.

The Thai and Malaysian authorities said they had not received any official communication on the issues of increasing non-tariff barriers or the diversion of goods. Thailand’s Ministry of Commerce said in a statement to Reuters that the ASEAN treaty should be revised to make it more liberal in terms of tariff liberalization and rules of origin and to have simpler customs and verification procedures.

Meanwhile, officials said the Center was inclined to stick only to free trade agreements it deemed mutually beneficial. India has a trade deficit with most of the countries with which it has signed FTAs.

“Very clearly, in the ASEAN agreements India has in many ways the wrong side of the stick, especially in the electronics area where we are now seeing a number of products coming through. via ASEAN economies to India, ”said George Paul, CEO of the Information Technology Manufacturers Association.

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