India, China sign MoUs to address concerns on trade deficit | SupportBiz

News

India, China sign MoUs to address concerns on trade deficit

 
India and China signed three Memorandum of Understandings (MoUs) on buffalo meat, fisheries and pharmaceuticals, and one agreement on feed and feed ingredients on May 20. These MoUs will address the growing trade deficit between the two countries, which has increased from USD 1.08 billion in 2001-02 to USD 40.77 billion in 2012-13.

The MoUs were signed during the visit of the Premier of the State Council of the People’s Republic of China, Li Keqiang to India.

The Union Minister of Commerce, Industry & Textiles Anand Sharma said that “the signing of the MoUs between India and China is a good beginning to address the issues India is raising with China from time to time. All the sectors are of immense trade importance and India has clear price and quality competitiveness in these sectors to compete in the world market.”

A MoU for the export of buffalo meat from India to China was signed between Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and India’s Agricultural and Processed Food Products Export Development Authority (APEDA). The export of buffalo meat is not allowed from India to China and this has been a long pending issue between the two countries. With the resumption of trade, India hopes a big merchandise trade that will help not only in reducing trade imbalance of the country, but also in China’s food security by providing quality and hygienic meat products.

The Marine Products Export Development Authority (MPEDA) and AQSIQ signed a MoU on co-operation in import and export of fishery products. The MoU aims to institutionalise co-operation in promoting trade of fishery products and healthy development of trade between India and China. India is expecting more exports from India to China through this cooperation.

A MoU was also signed between Pharmaceuticals Export Promotion Council of India (Pharmexcil) and The China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE). Off late, India has been finding it difficult to expand its trade with China in the pharmaceutical sector. The signing of the MoU is expected to facilitate India’s access to the Chinese pharmaceuticals market.

The average imports of medicinal and pharmaceutical products from China during last five years were USD 4332.37 million vis-à-vis exports from India of USD 692.44 million.

An agreement was also signed between Export Inspection Council of India (EIC) and AQSIQ on trade and safety of feed and feed ingredients. India hopes a big merchandise trade for feed & feed ingredients after the resumption of trade as China has suspended import of feed and feed ingredients since January 1, 2012.

A work program was also constituted on the Working Groups constituted during the ninth Joint Economic Group (JEG). The program proposes concrete deliverables to constitute and define detailed mandate of the Working Groups as per the spirit of the JEG held on 27th August 2012 in New Delhi.

The bilateral trade between India and China had gone up from USD 2.09 billion in 2001-02 to the high of USD 75.59 billion in 2011-12; which tapered to USD 67.83 billion during the year 2012-13.