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Import tariff hikes aimed at China may shield other trade partners: Report

Some items being considered for the next round of tariff and non-tariff barriers include chemicals, telecom equipment, leather goods, steel items, gems and jewellery, furniture, hardware and textiles.

July 29, 2020 / 01:46 PM IST
Representative image

Representative image

India is in the process of ensuring that the next round of import tariff hikes targetting China includes items covered under free trade agreements with other trade partners, and for which businesses have access to alternatives.

"The Commerce and Industry Ministry has received inputs from various industry bodies proposing items where import duties can be increased. The suggestions are being evaluated and a final list is being drafted," an official said as per a report by Hindu BusinessLine.

The Centre is trying to come up with tariff and non-tariff measures on goods mostly imported from China to bridge its high bilateral trade deficit. The move also seeks to punish Beijing for inciting violence at the India-China border in the Galwan valley.

Various industry bodies such as CII, FICCI, Assocham, have given suggestions on imports which could be contained. "All sectors view the matter from their perspective, so the government has numerous suggestions which have to be weighed," the official added.

The Commerce Ministry also trying to safeguard the domestic industry from the tariff hikes.

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"Officials are looking at items that are protected from tariff increases under the free trade agreements (FTA) India has signed with its various trade partners such as Japan, South Korea, Singapore and ASEAN. If tariffs are raised on such items, imports from these countries won’t be affected,” the official said.

Some items being considered for the next round of tariff and non-tariff barriers include chemicals, telecom equipment, leather goods, steel items, gems and jewellery, furniture, hardware and textiles.
Moneycontrol News
first published: Jul 29, 2020 01:46 pm

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