CONTENTS

Chairman's Desk Chemexcil Activities Report of Awareness Seminar on Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and CAP INDIA PROMOTION at EEPC INDIA’S Conference Hall, Kolkata on 14-11-2019 CAPINDIA Road Show and Chemexcil Membership Seminar Vapi 2nd China International Import Expo (CIIE) Exhibition” to be held at Shanghai, China from 5th to 10th November, 2019 Workshop on Developments in Chemical Regulations (S.Korea, UK & EU)" Chennai Workshop on Developments in Chemical Regulations (S.Korea, UK & EU)" Mumbai News Articles Govt urged to look into data protection for Pesticide Management Bill India: Draft amendment to the Geographical Indications of Goods (Registration & Protection) Rules, 2002 How Brexit can change trade negotiations between India and UK India may downsize imports from Malaysia after Kashmir remark at UN: Report India’s concerns about RCEP remain the major obstacle to world’s largest trade deal PM Modi to take a call on all pending RCEP issues Indian firms eye base in the Netherlands, post-Brexit DGFT issues advisory for exports over issue of late cut imposed by the system while applying for MEIS Non-Tariff Trade Regulations on the Rise in Asia-Pacific Govt committed to safeguarding IP content: Commerce Secretary India Raising Trade Barriers against South Kore New foreign trade policy may have simpler export promotion schemes Govt steps improving India's ease of doing business rank: Commerce ministry Commerce Ministry considers 5-year extension of income tax benefits for SEZ units Commerce Ministry held discussions with exporters: MEIS, credit, IGST refund issues raised India and Ecuador ink Protocol to start trade negotiations India, Peru to hold next round of FTA talks in Dec New Delhi keen for early conclusion of India-European Union free trade agreement Efforts on to fast-track India's free trade agreements with UK, EU India not in a hurry to sign FTAs, but trade isolation not good for country: Commerce Minister WTO panel upholds US case, rules India's export subsidies illegal WTO rules against India’s export subsidies: All you need to know India to appeal against WTO dispute panel’s ruling on export promotion schemes India, Germany agree to boost industrial cooperation India decides to not join RCEP agreement, Modi says deal does not address our concerns Review of FTA with Asean will help balance trade: PM Narendra Modi Chemical & petrochemical industry must protect environment at any cost: Chemical Secy India proposes making 72 chemical standards mandatory India, EU to push for free trade pact again WTO ruling against export incentives: Should Indian exporters be worried? India resumes buying Malaysian palm oil as Kuala Lumpur offers discount Opinion | Asia’s miracle economies have lessons for India’s trade policy Chemexcil Notices Incoterms 2020 released by International Chamber of Commerce (ICC) RBI EDPMS, Exemption from provisions of Caution listing extended till 31/12/2019 DGTR, Final Findings of New Shipper Review (NSR) pertaining to Anti-Dumping Duty imposed on the imports of “Saturated Fatty Alcohols” originating in or exported from Indonesia, Malaysia, Thailand and Saudi Arabia, as requested by Pt. Energi Sejahtera Mas, (PTESM) (Producer from Indonesia) and Sinarmas Cepsa Pte. Ltd. (SCPL) (Exporter from Singapore) initiated on 15.01.2019 GST, Eligibility to file a refund application in FORM GST RFD-01 for a period and category under which a NIL refund application has already been filed DGFT, Issue of Late Cut being imposed by the system while applying MEIS on reactivated shipping bills GST, Notifications issued to implement the decisions of recent GST Council meeting DGFT, Amendment in Import Policy Condition of Urea under Exim Code 31021000 in the ITC (HS) 2017, Schedule- I (Import Policy) Reduction of excessive dependence on imports of chemical & petrochemical sector, Reduction of Duties on certain Chemicals Imported from USA DGFT, Amendment in Import Policy Condition of Urea under Exim Code 31021000 in the ITC (HS) 2017, Schedule- I (Import Policy) JNCH Claim of refund amount on account of double-payment of Customs Duty, Eligibility Criteria for availing of DPD Scheme by Importers CBIC, Clarification regarding inclusion of cesses, surcharge, duties, etc. levied and collected under legislations other than Customs Act, 1962, Customs Tariff Act, 1975 or Central Excise Act, 1944 in Brand Rate of duty drawback Updates on Recent Trade Remedy Measures by DGTR(from 1st Oct 2019 onwards) DGFT Mis-declaration of imported goods under 'Others' category of ITC (HS), 2017, Schedule-I (Import Policy) JNCH, Introduction of online module for facilitation of MSMEs DGFT, Amendment in Conditions for refund of Deemed Export Drawback CBIC, Generation and quoting of Document Identification Number (DIN) on any communication issued by the officers of the CBIC to tax payers and other concerned persons on or after 8th Nov 2019 Export Strategy Peru

Chairman's Desk

Ajay Kadakia Chairman, CHEMEXCIL

Dear Member-Exporters, I have pleasure to bring to you the bi-monthly issue of CHEMEXCIL Bulletin for the month of OCT-NOV-2019. I am glad to know that India gained about $755 million in additional exports, primarily related to chemicals, metals and ore, to the US in the first half of 2019 due to the trade diversion effects of Washington’s tariff war with China, as per the study conducted by the UN trade and investment body. Friends, I attended the recently concluded meeting on discussion on Export Performance called by Commerce Secretary AnupWadhawan under his chairmanship on 24th October, 2019 in New Delhi Commerce Secretary (CS) welcoming the EPCs to the meeting and outlining the current situation of Indian Exports and the challenges being faced by export sector. Given the backdrop of the global slowdown, feedback and inputs are being sought on key issues related to exports, which can also be taken up for redressal. It was mentioned that EPCs would get full support from government. EPCs were urged to work towards better export performance and take all possible steps to promote exports. I had highlighted below two issues ·         NGT (National Green Tribunal) was imposing environment based penalties on many chemical industries, thereby hampering export performance. ·        A request  was made that Interest Equalization Scheme (IES) be expanded by including  additional tariff lines  for  merchant exporters/ Non MSME exporters from chemical sector. Commerce Secretary advised the respective departments to look into the matter of our requests. Besides, product and territory specific issues, some of the overall cross-cutting issues which required priority attention were also discussed which includes TMA (Transport and Marketing Assistance) scheme - Many exporters felt that presently the scheme covers only freight component. However, for optimal utilization, there is need for coverage of Transport and Marketing Assistance for exports by air and sea. It was mentioned that, due to budget constraints and this being a new scheme, present status of implementation, covers a few components. However, the same can be extended during subsequent years. ROSTCL (Rebate of State and Central Taxes and Levies) –There were issues raised in the meeting regarding implementation of existing export promotion schemes. This  was clarified and it was emphasized that scheme like MEIS which may be discontinued since they are not compatible with WTO framework.  In this regard, government has proposed to come with a new scheme called  “Remission of Duties and Taxes on Exported products (RoDTEP)”   which is eventually expected to phase out MEIS w.e.f 01/01/2020.    Export Promotion Councils/ Trade bodies  havebeen requested to provide data with respect to un-rebated taxes/ duties/levies used in the manufacture of export product(s)in the prescribed formats.  Council members have been requested to participate in this important exercise and provide data. Category of risky exporters - The matter of categorizing exporters as ‘Risky Exporters’ and subsequent harassment by way of holding up export consignments for 100% physical verification was flagged by various EPCs during the meeting. EPCs informed that the categorization was being made based on RMS on GST portal which the EPCs said may not be fair and was not non-transparent. It was pointed out that the criteria of categorization is never revealed and once declared a risky exporters, the process of getting removed from the categorization is also not clear. Due to this arbitrariness, the exports were getting affected.  In this regard, the council has sent representation  to CBIC requesting them for relief in this matter so that exports are not impacted. Export credit and e-wallet - Exporters continued to face problems, pertaining to availability of export credits, faster GST refunds etc. It was mentioned that the proposed e-wallet scheme, needs to be implemented on a priority basis and would help in addressing this issue. It was also mentioned that this issue would be addressed appropriately. Pre-import issue:   We understand that Problems are again being faced by exporters due to Pre-import condition even after paying IGST plus interest as per DRI claims.  In this competitive business environment where exports have started declining, it is essential for legitimate exporters to concentrate on export promotion rather than getting distracted by such harassment.     In the interest of export promotion,   have sent representation to CBIC so that immediate relief is provided to such exporters and    pre-import condition is withdrawn retrospectively. Amendments in MAI scheme - Many exporters mentioned about need for amendments in MAI scheme, including providing assistance to buyers, from developed as well as, developing countries and ensure better participation from a larger number of exporters and EPCs. Friends you might be aware that India is considering restricting imports of some products from Malaysia including palm oil, which is a raw material for Indian cosmetics Industry. India is looking for ways to limit palm oil imports and may place restrictions on other goods from the country. Palm oil accounts for nearly two-thirds of India’s total edible oil imports. India buys more than 9 million tons of palm oil annually, mainly from Indonesia and Malaysia. As per my industry sources Indonesia is eager to sell more and more palm oil to India. India could also increase imports of soya oil from Argentina and sunflower oil from Ukraine to offset any drop in Malaysian palm oil shipments. Indonesia wants to increase exports of palm oil to India and wants to buy sugar from India in exchange. You might also be aware that India Lost the Export Incentive Case Filed by US at WTO due to 'Inconsistency' with International Trade Norms. With this ruling, India will have to re-work these incentive schemes to comply with the WTO ruling. However, it can file appeal against the ruling at the appellate body of the WTO dispute settlement mechanism.     In such  a scenario, the proposed RoDTEP scheme becomes very relevant  as it will  neutralize un-refunded taxes on exports  which makes it WTO compatible. India decides not to join RCEP agreement, as the deal does not address our concerns. Also, India has decided not to be a party to join the Regional Comprehensive Economic Partnership (RCEP) agreement with China and other Asean countries over imbalance in the agreement that was reached. On trade promotion part council initiated various trade promotional activities in last 2-months the detailed report of which is a part of this bulletin. The 9th Asia International Dye Industry, Pigments and Textile Chemicals Exhibition (Interdye Asia 2019), co-organized by Shanghai International Exhibition Co Ltd., took place from November 14th to 16th, 2019 at the Gujarat University Convention and Exhibition Center. Undersigned inaugurated the event, wherein approximately 100 exhibitors from India, mainland China and Taiwan province showcased their products in this event. The exhibition was cohosted by China Dyestuff Industry Association and China Council for the Promotion of International Trade, Shanghai Sub-Council and supported by CHEMEXCIL. The exhibition followed closely the development of the industry, with international exhibitors including Runtu, Jihua, Yabang, Boao, Liansheng, Tianyuan, Runhe, Yadong Longxin, Liyuan, Jinjing, KIRI, ROSSARI, GOPINATH, HINDPRAKASH, FUMO, SPECTRUM, DEEPAK and so on. They promoted the new environment-friendly printing and dyeing products and new application technologies. China and India are now global leaders in the Colorants fields with immense opportunities for further growth and consolidation, and thus it is natural for Colorants industry of both the countries to come closer and collaborate for mutual benefit. A strong domestic market in both the countries gives further boost to colorants' growth potential, with anticipated sharp increase in per capita consumption in the coming years. This growth has not gone unnoticed by the global colorants fraternity. As far as exports are concerned, the chemical Exports for April-October, 2019-20 were valued at USD 11.06 billion as compared to the corresponding period last year, viz. April-October-2018-19 which was USD 10.98 Billion registering a surplus  of 0.68 percent because of overall decrease in  demand.  Chemical Imports for April-October-2019-20 were valued at USD 13.21 billion as compared to the period April-October-2018-19 which was USD 14.86  Billion registering a deficit of 11.09 percent I sincerely hope and trust that you would find this Chemexcil News bulletin informative and useful.  Meanwhile, the Secretariat eagerly and enthusiastically looks forward to receiving your valuable feedback and suggestions which would eventually help us to further improve this bulletin. With Regards, Ajay Kadakia Chairman Chemexcil

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Report of Awareness Seminar on Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and CAP INDIA PROMOTION at EEPC INDIA’S Conference Hall, Kolkata on 14-11-2019

CHEMEXCIL, PLEXCONCIL & IPF had jointly organized an Awareness Seminar on Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and CAP INDIA Promotion on 14th November, 2019 at EEPC INDIA’s Conference Hall, ITFC (Ground Floor), 1/1 Wood Street, Kolkata.

The following representatives were present in the meeting –

• Mr. Partha Santra, Superintendent , CGST, Kolkata
• Mr. Debdudal Chatterjee, Superintendent , CGST, Kolkata
• Shri Amit Pal – COA Member Plexconcil
• Shri Nilotpal Biswas, Regional Director Plaxconcil
• Shri Soumen Guha, Regional Officer Chemexcil

The  program  began  with  honoring the  distinguished  guests  with  presentation  fresh  flowers. Welcome speech was given by Shri Amit Pal – COA Member Plexconcil.

Mr. Debdudal Chatterjee, Superintendent , CGST, Kolkata made a presentation on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and interacted with the participants.

Mr. Chatterjee covered the following points –

• Objectives of Sabka Vishwas Scheme.
• Benefits
• Features
• Cases covered under the Scheme
• How to apply for SVLDRS.

Mr. Partha Santra, Superintendent , CGST, Kolkata, the Key Note Speaker, gave an informative presentation on New Returns System under GST. He explained about the New Return System under GST, Sec 43A, Sec 16(2), Sec 37 & 38 etc., and Returns under the New GST Return System.

The event attracted good response with above 40 member-exporters attending the seminar. During the Seminar, we have promoted Cap India exhibition with shown screening of film on CAP INDIA and banner also been displayed and brochure given to the participations.

All questions and doubts of the delegates were answered methodically. The session concluded with Vote of Thanks.

The seminar was well appreciated by all our member exporters.

Dignitaries during the Seminar on Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and CAP INDIA Promotion @ Kolkata on 14-11-2019

Mr. Partha Santra, Superintendent , CGST, Kolkata during the interactive session on the Seminar on Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and CAP INDIA Promotion @ Kolkata on 14-11-2019

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CAPINDIA Road Show and Chemexcil Membership Seminar Vapi

From left Mr. Manish Shah, Sr. VP from Unison, Mr. Manoj Kumar, Chief Advisor Credit insurance Unison, Mr. Prakash Bhadra, President VIA, Mr. Satish Patel, Hon. Secretary VIA, Mr. Prafulla Walhe Dy. Director Chemexcil .

Chemexcil Mumbai Office organized Chemexcil Membership awareness seminar along with seminar on Export Risks Management followed by CAPINDIA interactive meeting on 23rd October-2019 at Vapi Industries Association, VIA House, Plot No. 135, GIDC, Vapi - 396195 jointly organized by CHEMEXCIL, PLEXCONCIL, in association with Vapi Industries Association.

The seminar was attended by Mr. Manish Shah, Sr. VP from Unison, Mr. Manoj Kumar, Chief Advisor Credit insurance Unison, Mr. Prakash Bhadra, President VIA, Mr. Satish Patel, Hon. Secretary VIA, Mr. Prafulla Walhe Dy. Director Chemexcil and 30-member exporters from Vapi region.

Mr. Prafulla Walhe Dy. Director, Chemexcil briefed about the activities of Chemexcil and interacted with participants. He requested the non members of chemexcil to become the member of council and take an advantage of various schemes of Ministry of commerce and Industries. He also requested them to exhibit and visit CAPINDIA 2019 event dated 2nd - 4th December 2019 at Mumbai.

The seminar was well attended by the 30-member exporters of the Vapi and nearby region. Mr. Manish Shah, Sr. VP from Unison, Mr. Manoj Kumar, Chief Advisor Credit insurance Unison, emphasized the need to credit insurance and urged participants to cover the risk of trade by following proper insurance process.

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2nd China International Import Expo (CIIE) Exhibition” to be held at Shanghai, China from 5th to 10th November, 2019

Indiaparticipated in 2nd China International Import Expo (CIIE) held from November 5-10, 2019 at National Exhibition and Convention Centre (NECC), Shanghai, China with the support of Ministry of Commerce & Industry, Government of India. The key objective was to enhance trade and economic cooperation between India & China.The Government of China has given a “Guest Country of Honor” status to India in this 2nd editionthereby giving India a bigger Country Pavilion to showcase its developments & achievements in goods, trade in services, Investment opportunities etc. FIEO was designated as a lead agency by the Government of India to set up Country Pavilion.

CIIE is an import-themed expo, an open and cooperative platform for countries and regions worldwide to showcase their development and to engage in international trade and economic globalization.CIIE event was inaugurated by the Hon’ble President of the People’s Republic of China.

Keeping in view the above position of India in the Expo in the 2nd edition and an ideal platform to promote India’s exports to China, CHEMEXCIL participated as an associate partner in INDIA Country Pavilion to showcase developments, achievements andstrengths of Indian Chemical Industry and the role of CHEMEXCIL to promote exports of Dyes & Dye Intermediates, Basic Organic & Inorganic Chemicals, Agrochemicals, Cosmetics & Toiletries, Essential Oils & Castor Oil pertaining to our sector.


Shri Ajay Kadakia (Chairman), Shri S G Bharadi (Executive Director) and Dr J P Tiwari (Regional Director) from CHEMEXCIL participated in this event. Graphics / Videos / Brochures were displayed to showcase about strengths of Indian Chemical Industry and the role of CHEMEXCIL in promoting exports.

Shri Vikram Misri, Ambassador of India in China, and Shri Sanjay Chaddha, Additional Secretary, Ministry of Commerce, Govt of India inaugurated India’s Country Pavilion. Commerce Secretary, Dr.Anup Wadhawan visited India Pavilion and interacted with the participants. Buyer Seller Meet (BSM) was organized by FIEO and ICC wherein Dr.Anup Wadhawan, Commerce Secretary was the Chief Guest and a presentation was made by our chairman, Shri Ajay Kadakiaabout Indian Chemical Industry &Potential of Exports to China.

Shri Vikram Misri, Ambassador of India in China, and Shri Sanjay Chaddha, Additional Secretary, Ministry of Commerce, Govt of India inaugurated India’s Country Pavilion.

Shri Vikram Misri, Ambassador of India in China, and Shri Sanjay Chaddha, Additional Secretary, Ministry of Commerce, Govt of India interacting with the Shri Ajay Kadakia, Chairman and Shri S G Bharadi, Executive Director, CHEMEXCIL.

Dr. Anup Wadhawan, Commerce Secretary, Govt of India interacting with Shri Ajay Kadakia, Chairman and Shri S G Bharadi, Executive Director, CHEMEXCIL alongwith Shri Anil Kumar Rai, Consul General of India at Shanghai, China.

Left to right Shri Ajay Kadakia, Chairman, CHEMEXCIL, Shri Vikram Misri, Ambassador of India in China,Shri S G Bharadi, Executive Director, CHEMEXCIL, Dr J P Tiwari, Regional Director, CHEMEXCIL in CHEMEXCIL stall.

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Workshop on Developments in Chemical Regulations (S.Korea, UK & EU)" Chennai

CHEMEXCIL, with SSS (Europe) AB had jointly organized seminar on “Developments in Chemical Regulations (S. Korea, UK & EU), Chennai dated 26th November 2019 at Rajpark Hotel., TTK Alwarpet, Chennai, India.

The following representatives were present during the Seminar

• Mr. Shisher Kumra, Executive Director, SSS (Europe) AB, Sweden
• Mr. Prafulla Walhe, Dy. Director, CHEMEXCIL, Mumbai
• Mr. Ilanahai, President of Chemical Industry Association, Chennai
• Mr. Shrirang Bhoot, CTO,NSSS Pvt. Ltd, Nagpur

The program started with honoring Mr.Ilanahai, President of Chemical Industry, association, Chennai and Mr. Prafulla Walhe, Dy. Director, CHEMEXCIL, Mumbai.

The flow of program was as under

Welcome speech was given by Mr. Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden.

Mr. Prafulla Walhe Dy. Director Chemexcil briefed about the revised MAI guideline on support for statutory compliances, he also briefed about the case on REACH evaluation process and advised members to take the compliance documentation and declaration very seriously in order to avoid heavy penalties under REACH.

Mr.Ilanahai, President of Chemical Industry Association, Chennaiinformed about the overall situation in chemical industry and suggested participants to enhance their skills in order to facilitate international trade business.

Mr. Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden made presentation on Update on EU REACH Regulation - Roles and Responsibilities of no EU exporter, Update on Brexit – its implications and Draft Indian Chemical Policy.

Mr. Shrirang Bhoot, CTO, NSSS Pvt. Ltd, Nagpur briefed and presented Introduction to Revised K-REACH,and Sub-ordinance (draft)

The Seminar attracted good response with above 60 member-exporters participation. CAPINDIA brochure were distributed toall participants. All questions and doubts of the delegates were answered by the speakers. The session concluded with Vote of Thanks

The seminar was well appreciated by all our member exporters

A bouquet of flowers presented by Mr.Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden to Mr. Prafulla Walhe, Dy. Director, Chemexcil and in center Mr.Ilanahai, President of Chemical Industry Association, Chennai	Mr. Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden making a presentation on technical topic

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Workshop on Developments in Chemical Regulations (S.Korea, UK & EU)" Mumbai

CHEMEXCIL, with SSS (Europe) AB had jointly organized seminar on “Developments in Chemical Regulations (S. Korea, UK, Turkey, Taiwan& EU), in Mumbai dated 28thNovember 2019 at The Orchid Hotel Mumbai Vile Parle


The following representatives were present in the Seminar –

• Mr. Shisher Kumra, Executive Director, SSS (Europe) AB, Sweden
• Mr. Prafulla Walhe, Dy. Director, CHEMEXCIL, Mumbai
• Mr. Shrirang Bhoot, CTO,NSSS Pvt. Ltd, Nagpur
• Mrs. Ankansha,AGM, NSS Nagpur

Welcome speech was given by Mr. Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden followed by REACH update.

Mr. Prafulla Walhe Dy. Director Chemexcil briefed about the revised MAI guideline on support for statutory compliances, he also informed the case on REACH evaluation process and advised members to take the compliance documentation very seriously.

Mr. Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden made presentation on, Update on Brexit – its implications and Draft Indian Chemical Policy

Mr. Shrirang Bhoot, CTO, NSSS Pvt. Ltd, Nagpur briefed Update regarding the Poison Center Notification and presented Introduction to Revised K-REACH,and Sub-ordinance (draft)

Mrs. Ankansha, AGM, NSS Nagpur updated on Introduction to Turkey REACH and Taiwan Regulations.

The Seminar attracted good response with above 70 member-exporters participation. All questions and doubts of the delegates were answered by the speakers. The session concluded with Vote of Thanks.

Mr. Prafulla Walhe, Dy. Director, Chemexcil briefing on New MAI guideline to participants

Mr. Shisher Kumra,Executive Director, SSS (Europe) AB, Sweden during the presentation on technical topic

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Govt urged to look into data protection for Pesticide Management Bill

The onus is on the government to address the concerns of the crop protection industry in the Pesticide Management Bill, which is on the agend

a in the winter session of Parliament. These include data protection and alignment with best international practices and regulatory reforms by reducing registration timelines of crop protection products. 

This was stated Rajendra Velagala, chairman, CropLife India, at its 39th Annual General Meeting (AGM). CropLife India is an association of 18 R&D-driven crop science companies.

P Raghavendra Rao, secretary, Department of Chemicals and Petrochemicals, Government of India, said, “The role of agrochemicals in the development of the food grains production in India is critical, considering the fact that India is predicted to be the most populous country by 2030.”

The day-long AGM witnessed an inaugural and four technical sessions with experts’ and key government officials’ conglomeration, on the cause of supporting the farmer.

The sessions included such topics as New Government’s Vision for Agriculture Transformation in India; Bringing Innovation to the Farmers; Case for Regulatory Data Protection in India; Regulatory Reforms and Global Best Practices; Fast Track Adoption of Drones Application Technology Solutions and Ensuring Quality Inputs for Farmers.

Concurring with Rao, Panjab Singh, president, National Academy of Agriculture Sciences, said, “From a problem of deficit, we are now going through the problem of plenty. The issue of rising population needs to be addressed by sustaining agriculture and production, so that livelihood can be maintained.”

Ashok Dalwai, chief executive officer, National Rainfed Area Authority, Ministry of Agriculture and Farmers Welfare, Government of India, said, “Unfortunately the reforms of 1991, bypassed the agricultural sector hence we need to improve our agriculture, now. It is imperative for the government to listen to the industry, as it will lead to solutions.”

He added, “Democracy, institution and technology are the important ingredients for development of a nation and there is need for inorganic competition.”

Ashwani Kumar, joint secretary, seeds and M&T, Ministry of Agriculture and Farmers’ Welfare, Government of India, informed, “ICAR-IARI is conducting a study on the application of crop protection products by drones and the report will be submitted soon to the ministry. We are working in close coordination and will issue the guidelines for drone applications, at the earliest.”

P K Chakrabarty, member, Agricultural Scientists Recruitment Board (ASRB), informed, “The Government of India has approved an International Best Practice of Croup Grouping on August 14, 2019.”

“Regulatory reforms and the new crop protection products has to be given faster registration,” he added.

Sianghee Tan, executive director, CropLife Asia, said, “The expertise of the Indian IT sector should be utilised in the growth of agriculture in India. Apart from attracting the Indian youth to farming, technology will help in mitigating the risk and aid in doubling farmers’ incomes.”

K C Ravi, vice-chairman, Crop Life India, stressed, “The need for coordinated action by all stakeholders to address the policy bottlenecks, which are slowing the growth of the agriculture sector.”

The crop protection industry has played a major role in ensuring food and nutritional security of the nation besides making us one of the key agricultural output countries in the world. Challenges are getting complex with invasion of new pests like fall army worm, build-up of resistance, climate change and associated vagaries of weather.

Crop Life India members are not only committed to bring latest and safer innovations, but also equally committed to educate farmers on their safe and responsible use. There are many examples of this commitment over the years:

India is among the few countries to introduce latest innovations and greener chemistries.

Over 40 lakh farmers have been trained in the safe and responsible of crop protection products

Crop Life members continue to work closely with farmers, scientific community and policy makers to address current as well as future challenges. However, the cost of research has gone up, and it is estimated that the cost of discovery and development of a new active ingredient is about $280 million.

While Crop Life member companies are committed to innovation to the core, this also means fewer new active ingredients are coming out of research now than in the past.

If Indian agriculture must flourish, be more competitive, quality-driven, reducing wastages as well as losses to enable our farmers to be more successful, it is absolutely essential that a progressive environment is in place that fosters innovations.
(Source: http://www.fnbnews.com/Top-News/govt-urged-to-look-into-data-protection-for-pesticide-management-bill-51904 dated 1st Oct-2019)

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India: Draft amendment to the Geographical Indications of Goods (Registration & Protection) Rules, 2002

The Ministry of Commerce and Industry on September 16, 2019 has released the Draft amendment to the Geographical Indications of Goods (Registration & Protection) Rules, 2002 (hereinafter referred to as the ‘draft amendment rules’). The amendment proposes to further strengthen the Intellectual Property Ecosystem by reducing the fees to be paid for the GI registration process and easing the procedure for registration of an authorized user of the registered geographical indication.

The draft amendment rules were released for the information of the stakeholders and is available for suggestions and comments by stakeholders for a period of thirty days from the date on which the Official Gazette, containing the notification, were made available to the public.

Proposed Changes in the Draft Amendment Rules

Only Proposed authorized user can file application- The draft amendment rules proposes to make changes to Rule 56(1) of the Geographical Indications of Goods (Registration & Protection) Rules, 2002. Rule 56(1) deals with application by a producer as an Authorized User of a registered geographical location. The proposed amendment requires only the proposed authorized user to file an application to Registrar. The law at present requires that such an application shall be made jointly by the registered proprietor and the proposed authorized user. The Statement of Case of how the proposed authorized user claims to be the producer of the registered geographical indication was required to be filed along with an affidavit but under the draft amendment rules the statement of case can be filed without an affidavit.

Requirement of Letter of Consent under Section 56 proposed to be removed- According to the draft amendment rules, ‘the applicant shall also forward a copy of the application to the registered proprietor, and intimate the Registrar of due service of the same’ and the requirement for a copy of letter of consent under 56(2) has been removed.

Rule 59(1) is also proposed to be changed by the draft amendment rules. For the registration of an authorized user entry in the register, where an opposition is filed and dismissed the registrar can enter the authorized user in Part B of the register and shall issue a registration certificate with the seal of Geographical Indication Registry. The current position is that the Registrar has to wait till the end of the appeal period after the opposition is dismissed to enter the authorized user in Part B of the register and the same was to be done with the prescribed fees but the draft amendment rules seek to remove the appeal period obligation along with removal of the fees that is charged currently.
As per the draft amendment rules, Rule 59(3) will be amended and unmounted representation of the geographical indication will not be required at the time of registration.

No fees for registration of an authorized user of a registered GI- In Schedule I, under Entry 3A, the fees to be paid for the registration of an authorized user of a registered geographical indication is proposed to be reduced from INR 500 (7 USD Approx.) to nil. Similarly, the fees for renewal under Entry 3C of Schedule I is proposed to be reduced from INR 1000 (14 USD Approx.) to nil. Entry 3B will be deleted from the Schedule I under the new draft amendment rules to cancel the fees charged for the issuance of certificates. Here is the Proposed changes to the fees structure for registration of an authorized user of a registered geographical indication:

(Source:https://www.lexology.com/library/detail.aspx?g=d07d1bbe-2325-49bd-844e-358be18a24cb dated 6th Oct-2019)

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How Brexit can change trade negotiations between India and UK

(For India, and several other countries, negotiating trade deals with UK—distinct from EU—might imply greater negotiating flexibility and better prospects of meaningful outcomes.)
Brexit is approaching fast. The deadline of October 31, 2019, is less than a month away. Till now, there is no clarity on whether the UK will have a deal with the EU. Some sort of a deal appears likely, given the legal necessity, and recommencing of Parliament following the directives of the UK Supreme Court. At the same time, possibility of fresh elections can’t be ruled out too. Notwithstanding these multiple possibilities, the reality of the UK and EU parting ways is obvious. What does that mean for others, including India, in so far as trade relations with UK are concerned?

Brexit is a more vexing issue than most comprehend. Since 1973, when the UK economically integrated with the EU, the world hasn’t looked at EU and UK markets separately. This is in spite of the UK not giving up the British Pound and not joining the Schengen regulations for common visas. From a trade perspective, the most important characteristic of UK and EU being together was that of tariffs being same for both. The other important aspect is the preferential access that service suppliers from the UK and EU get in each other’s markets; while non-EU service suppliers face several and often disconnected regulatory barriers, including taxation laws, across Europe, such impediments don’t arise for UK suppliers. The situation would change post-Brexit as Europe and UK would need to be looked as discrete economic entities.

The first implication of Brexit for countries like India, is the need for recognising distinct trade and investment relations with another ‘new’ major economy. Based on nominal GDP, and as estimated by the IMF for 2019, India and UK are the world’s fifth and sixth largest economies. India has a nominal GDP of around $3 trillion, followed by the UK with a GDP of $2.8 trillion. Following Brexit, India would have to formalise trade and investment relations afresh with UK, distinct from those with the EU. While partly smaller than India in economic size, the UK, nonetheless, is a major economy. It is a part of the G7 group of world’s largest advanced economies. It is also a member of the G20 group of world’s most influential economies, comprising the largest of the advanced and emerging market economies. Trade and investment relations with the UK have significant implications for India and need to be crafted accordingly.

The UK is expected to follow a proactive external trade policy after Brexit. There are two parts to the policy. The first is the effort to retain trade relations, through ‘continuity agreements’ with countries with whom the EU has FTAs. The second is to explore trade agreements with new countries. Presumably, the first part is a more immediate priority. On the second, there are countries that might receive precedence in engaging and be treated ‘first tier’. Earlier this year, deposing before the India-UK Foreign Affairs Committee of the House of Commons, a senior UK Minister had indicated that India, while being important, was not ‘first-tier’ in UK’s post-Brexit FTA schemes. But more robust indications on the UK’s interest in working on trade engagement with India have come in the recommendations in the report of the Foreign Affairs Committee itself, emphasising priority to trade talks with India. These are followed by recent positive comments by prime minister Boris Johnson on a FTA with India following his meeting with prime minister Modi on the sidelines of the last G7 Summit at France in late August 2019.

Much hurdles and roadblocks would be encountered by India and the UK whenever they discuss a bilateral trade deal. These would not just involve tariffs on beverages, automobiles and auto-parts, but also non-tariff barriers like safety and quality standards for goods, conditions for movement of professionals and data security. There would be carry-forward of many issues that came up during India’s now-stalled FTA negotiations with the EU. These issues would be revisited by India and the UK in a post-Brexit context with the UK refocusing on comparative advantages after separating from EU, and India evaluating market access options solely on the basis of prospects in UK.

As mentioned earlier, the eventual character of Brexit would decide the course of future trade talks and engagement between India and the UK. A deciding factor in this regard would be whether the UK’s MFN tariffs, post-Brexit, remain the same as those now. The current UK MFN tariffs are those of the EU. A ‘hard’ separation might produce differences with the UK implementing tariffs distinct from EU. Similarly, there could be several other internal regulations influencing trade standards, investments and service supplies that would come up in the UK and influence trade talks. Nonetheless, for India, and several other countries, negotiating trade deals with UK—distinct from EU—might imply greater negotiating flexibility and better prospects of meaningful outcomes. A group of 28 heterogeneous economies is a far more difficult trade bloc to deal with than an individual economy. It would be good if India seizes the opportunity to get going on a deal with UK that corresponds to its interests.

(The author is Senior Research Fellow and Research Lead (trade and economic policy), Institute of South Asian Studies, NUS. Views are personal)

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India may downsize imports from Malaysia after Kashmir remark at UN: Report

India’s government was angered after Malaysian Prime Minister Mahathir Mohamad said last month at the United Nations that India had "invaded and occupied" Jammu and Kashmir and asked New Delhi to work with Pakistan to resolve the issue.

India is considering restricting imports of some products from Malaysia including palm oil, according to government and industry sources, in reaction to the Southeast Asian country’s leader criticising New Delhi for its actions in Kashmir.

India is looking for ways to limit palm oil imports and may place restrictions on other goods from the country, said a government source and an industry source who participated in discussions led by the Ministry of Commerce and Industry on the planned restrictions.

The sources asked not to be named as the proposal was still under discussion.

India’s government was angered after Malaysian Prime Minister Mahathir Mohamad said last month at the United Nations that India had "invaded and occupied" Jammu and Kashmir and asked New Delhi to work with Pakistan to resolve the issue.

The government wants to send a strong signal of its displeasure to Malaysian authorities, the sources said.

India, the world’s biggest importer of edible oils, is planning to substitute Malaysian palm oil with supplies of edible oils from countries such as Indonesia, Argentina and Ukraine, said the sources.

Palm oil accounts for nearly two-thirds of India’s total edible oil imports. India buys more than 9 million tonnes of palm oil annually, mainly from Indonesia and Malaysia.

In the first nine months of 2019 India was the biggest buyer of Malaysian palm oil, taking 3.9 million tonnes, according to data compiled by the Malaysian Palm Oil Board.

A spokeswoman for India’s commerce ministry said the ministry could not comment on things that were under consideration.

ALTERNATIVE SELLERS

Malaysia’s prime minister on Friday said he had not received anything official from India, after Reuters first reported that India was mulling restricting imports of Malaysian palm oil and other products.

The news prompted Malaysian palm oil futures to snap five days of gains to end lower on Friday evening.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange that had earlier been trading up on the day, fell 0.9 per cent to close at 2,185 ringgit ($522.23) per tonne.

A Mumbai-based refiner said it would not create a shortage of edible oils in India if buyers there stopped importing palm oil from Malaysia.

Indonesia is eager to sell more and more palm oil to India, the refiner said, adding that India could also increase imports of soyoil from Argentina and sunflower oil from Ukraine to offset any drop in Malaysian palm oil shipments.

Indonesia wants New Delhi to increase palm oil purchases and wants to buy sugar from India in exchange.

Higher Indian imports had helped Malaysia reduce stockpiles in 2019, but stocks could rise again and prices could come under pressure if India curtails or stops imports, said a Mumbai-based dealer with a global trading firm.

India’s government is also planning some restrictions on imports from Turkey, one of the government sources said, as Ankara has issued repeated statements on Kashmir, an issue that India considers an internal matter.

In addition to tensions around Kashmir, there has also been friction between India and Malaysia over Islamic preacher Zakir Naik, whom Indian authorities want extradited from Malaysia.
(Source:https://www.indiatoday.in/business/story/indian-imports-malaysia-palm-oil-kashmir-dispute-1608475-2019-10-11 dated 11th Oct-2019)

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India’s concerns about RCEP remain the major obstacle to world’s largest trade deal

• The RCEP involves the 10 Asean countries and the six major economies to have formed free trade pacts with the bloc: China, India, New Zealand, Australia, South Korea and Japan
• New Delhi has pressed for ‘data localisation’ provisions in the e-commerce chapter of the trade pact, and is also worried about the effects of tariff liberalisation on local industries

Not for the first time, trade ministers from the 16 Asia-Pacific countries negotiating the world’s biggest trade pact indicated this weekend they were within reach of a deal, but analysts and people with knowledge of negotiations predicted the final leg of talks will be particularly fraught.

Insiders told This Week in Asia the main hurdle for finalising the Regional Comprehensive Economic Partnership (RCEP) will be the negotiation position of India – which has been holding out for concessions the other 15 countries consider untenable.
Even as China and India – the proposed trading bloc’s largest economies – on Saturday signalled their readiness to thrash out their differences over the deal, domestic pressure on Prime Minister Narendra Modi’s government could scuttle his country’s involvement.
Explained: the difference between the RCEP and the CPTPP

Key allies of Modi’s ruling Bharatiya Janata Party (BJP) have mounted a nationwide protest against the RCEP, claiming the deal is lopsided and will be ruinous to local industries.

The RCEP – in the works since 2014 – involves the 10 countries of the Association of Southeast Asian Nations (Asean), and the six major economies to have formed free trade pacts with the bloc: China, India, New Zealand, Australia, South Korea and Japan.
The talks were scheduled to have been the last major meeting of RCEP trade ministers before the leaders of the 16 countries meet in November during the Asean summit.

The expectation beforehand was for negotiators to reach a provisional agreement, allowing the leaders to announce a firm signing date during the summit. However, chapters on trade remedy measures, trade competition, trade in service, rules of origin, investment and e-commerce have yet to be concluded.

The officials said negotiating teams will now continue through next week before ministers convene again on November 1.

The additional talks were necessary to “ensure the trade pact will be finalised before the RCEP leader meeting”, Thai Commerce Minister Jurin Laksanawisit said.
People with knowledge of Saturday’s talks said they were more heated than usual, and confirmed India’s position was on the minds of most delegates.
Informal talks stretched on for hours longer than scheduled before the formal intersessional ministerial meeting began in the late afternoon.
Negotiators from some countries, including Malaysia, were reportedly dissatisfied with the perceived eagerness of other countries to accede to India’s demands to bring the talks to a conclusion. In contrast, it is understood Malaysia’s requests for some concessions were not entertained.

Asean countries negotiate as a bloc but Thailand, Singapore and Indonesia have formed a “troika” to tackle outstanding issues on behalf of the 10-nation grouping.
This Week in Asia understands India has eight key requests that are outstanding. Among them are the reopening of language used in the proposed pact about how a mechanism for investor-state dispute settlement is to be implemented, and “carve-outs”, or exemptions, on ratchet obligations.

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In trade parlance, a ratchet mechanism prevents a country that has adopted trade liberalisation measures from implementing measures that are more restrictive.
Another contentious issue was New Delhi’s negotiators pressing for “data localisation” provisions in the e-commerce chapter of the trade pact.

Such a provision would allow a member country to mandate that data of national residents and citizens be stored within its borders, and approve whether such data can be copied and stored abroad.

E-commerce proponents claim this is antithetical to the way the digital economy works, and could result in governments misusing commercial data.

The data issue was just one of India’s several concerns regarding the RCEP.

In the last financial year, India recorded trade deficits with 11 of the other 15 countries in the proposed bloc – and critics have increasingly questioned why the Modi administration has persisted with a deal viewed as a gateway for China and other manufacturing nations to “flood” local markets with imports.

India is believed to have secured assurances for an auto-trigger mechanism that would guard against such a surge, but the pact’s domestic opponents want the government to withdraw altogether. Trump says ‘substantial phase-one deal’ reached in China trade talks . The Swadeshi Jagran Manch (SJM), the economic wing of the nationalist Rashtriya Swayamsevak Sangh (RSS), last week kick-started an 11-day nationwide protest against the RCEP.

The development has raised eyebrows, as the RSS is widely viewed as the ideological fountainhead of Prime Minister Modi’s BJP.

Deepak Sharma, the national spokesman for the SJM, told This Week in Asia his organisation was merely seeking a “level playing field”.

US-China trade war leads to fierce battle for skilled labour in Vietnam

“We are people – poor, environment- and village-centric … we encourage competition but the micro, small and medium enterprises should not be killed off artificially. But that is what will happen because of the RCEP,” he said.

Sharma said was the impact the pact would have on the likes of the dairy sector – the country’s top agricultural produce – was of particular concern.

India enjoys a trade surplus in dairy because of high tariffs it imposes on goods such as milk powder and butter. The fear is that local farmers dependent on the protected sector would suffer if tariffs are liberalised under the RCEP, allowing more imports from the likes of Australia and Japan.

Trade analysts concede Modi’s government faces an uphill task navigating such concerns. Within his cabinet, some ministers have positioned themselves against the pact even though the government’s official position – put forth by Commerce Minister Piyush Goyal this week – is that the country cannot afford to stand “outside the room”.
At the informal weekend summit between Modi and Chinese President Xi Jinping, the Indian leader reportedly raised the issue of the trade pact, emphasising that New Delhi wanted an equitable deal not only in terms of trade in goods, but also in investment and services.

India’s foreign secretary Vijay Gokhale said Xi “noted” these concerns.
Deborah Elms, executive director of the Singapore-based Asian Trade Centre, said ultimately Modi’s judgment would determine whether his country joins the RCEP.
“India has always been in a pickle. There is very limited domestic support for RCEP, especially when broken down by specific agencies or ministries. Each largely fears change,” Elms said.

“Hopefully Modi will be wise and brave enough to see the larger picture and overcome specific points of resistance.”

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PM Modi to take a call on all pending RCEP issues

NEW DELHI: Prime Minister Narendra Modi will take up India’s unresolved issues in the proposed Regional Comprehensive Economic Partnership trade agreement at the leaders’summit next month if the 16 members are unable to resolve them over the next few days. As per a 10-day work plan of 14 issues compiled by member countries, at least five
demands pertain to India specifically. India wants to change the base year to apply reduced tariffs to 2019, from 2013; an auto trigger mechanism to curb sudden surges in imports and decide on which products it doesn’t want to offer the same tariff concessionsto all countries; and future domestic policy concessions in investment and services sectors(called ‘ratchet' in trade parlance).
“These issues need to be resolved by October 22. Those not closed by then, will be frozenthrough the leaders’ decision,” said a source aware of the development.
Intense bilateral parleys are expected in the next 10 days as Indian negotiators finetune
the position on these crucial issues, especially on strict origin norms to keep in check Chinese imports.

While no joint statement was planned after the RCEP ministerial meeting in Bangkok on October 11-12, attended by commerce and industry minister Piyush Goyal, a media statement was expected. However, talks were inconclusive.

The RCEP is a proposed FTA between the 10 member states of the Association of Southeast Asian Nations (Asean) and its six FTA partners – China, India, Japan, South Korea, Australia and New Zealand. RCEP negotiations began in November 2012.

Singapore is learnt to have told India to decide if it wants to stay in the trade pact.

“India has said it will remain if its asks are met,” the source said. Ecommerce, tariff differential, policy decisions at municipal and Panchayat levelsand exemption from taxation disputes are the other issues that India needs to resolve for the agreement to get concluded in November and signed next year.

India has pushed for these safeguards and caveats in ratchet and concessions given to a trading partner under a bilateral treaty automatically getting extended to RCEP members as it fears Chinese imports flooding the country especially through other RCEP members.
(Source:https://economictimes.indiatimes.com/news/economy/foreign-trade/pm-modi-to-take-a-call-on-all-pending-rcep-issues/articleshow/71589645.cms dated 15th Oct-2019)

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Indian firms eye base in the Netherlands, post-Brexit

Visit of the Dutch royal couple this week will usher in new phase in bilateral ties
With the Netherlands ready to replace the UK, post-Brexit, as the hub for Indian investments into the EU, the country is optimistic about deepening bilateral ties with New Delhi.

Building stronger economic ties with India will be an important part of of Dutch King Willem-Alexander and Queen Maxima’s agenda on their five-day visit to the country this week just ahead of Brexit.

The country’s Ambassador to India, Marten van den Berg, shared with BusinessLine, his thoughts on the existing cooperation between the two countries in areas of trade, investments, education, water management and research, and the areas for future course for cooperation. Excerpts:
What should we expect from the royal couple visit to India in terms of boosting bilateral ties?

We will try to achieve a new phase in our bilateral cooperation. In the current visit of the royal couple, the economic part is very much focused on healthcare, water, agriculture, horticulture, and maritime development. The technology summit is central to our economic agenda. There is a lot of interest among Dutch companies and more than 150 companies are part of the trade delegation. There is also a big cultural dimension to the visit.

With the Brexit scheduled soon, how do you see the dynamics of economic cooperation changing between India and the Netherlands?

We see Indian companies showing big interest in making the Netherlands their European head office. That is because if you want to be in the EU, you can no longer be in the UK as Brexit creates trade and investment barriers between the UK and the 27 countries in the bloc. A lot of shipments from India to the rest of Europe is anyway passing through the Rotterdam port. We do see an increase in interest and investment proposals going to the Netherlands instead of the UK.

In the longer run, companies will no longer produce in the UK but move production facilities or set up new facilities in EU countries. And the Netherlands is open for such investments. It is also likely that you will see a shift in trade.

With no progress in the India-EU Free Trade Agreement negotiations, what are the other options for increasing trade and investment flows between the two?

Both sides are looking at having at least an economic dialogue to see how we can further strengthen ties, open up markets, deal with investment protection issues and tariffs. The economic dialogue is also important in terms of how to deal with global trade tensions including what is happening at the World Trade Organization as both India and the EU support a multilateral rule based system.

Do you think the investment climate in India is better with its ranking in the World Bank index of ease of doing business improving?

You have to see it from the long-term perspective and not just in terms of movement from one year to another year. What we do see is an improvement in the business climate. We do see Dutch companies looking for investment opportunities and expanding their activities and investments. So, in the long term there is a confidence that India is improving its business climate. Of course, we sometimes face problems in terms of regulations, complying to local requirements and standards and issues on tariffs and public procurement. But then we have open dialogues with Indian government on these topics. So, in the long term we see the Indian business climate improving.

How successful have been the water projects that the Netherlands has already undertaken in India?

Both countries share huge challenges in water. We either have too much or too little or it is too dirty. We are trying to get our universities together with companies to work on the problem. We have done a programme in Chennai — which has heavy rains for six weeks and rest of the year there is no water. Now joint programme teams from the Netherlands and India have found out that if for those six weeks water is stored and is not allowed to go to the sea, one can clean it and use it rest of the year. You don’t have to bring water in trains or need expensive desalinated plants. We are also working on cleaning the Ganga.

Is there any hope for the tanneries closed down in UP for polluting the Ganga?

A number of tanneries have been closed down in UP and we are working with many of them to help them implement new technologies so that they can run their business in a sustainable way without producing much waste or polluting the water. We are also working very closely with the UP government and are opening a Centre of Excellence in the State to share our knowledge and expertise.

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DGFT issues advisory for exports over issue of late cut imposed by the system while applying for MEIS

New Delhi, Oct 15 (KNN) Taking note of the representations made by trade and export promotion councils (EPCs) regarding issue of late cut being imposed by the system while applying Merchandise Export from India Scheme (MEIS), the Directorate General of Foreign Trade (DGFT) has issued an advisory.

In a Trade Notice, DGFT pointed it has been receiving multiple representations from the members of trade and EPCs regarding the difficulties being faced by exporters, when a claim is being made for shipping bills, which have been re-activated in the E com module.

The trade has reported that under the current online MEIS application mechanism, the system is applying late cut based on the second submission date and not counting the date of first online submission of the applied shipping bills.

DGFT said many such cases have also been decided in the PRC waiving late cut when exporter applies for the second time on the basis of the re-activated shipping bills.

DGFT issued an advisory on the steps to be taken by the exporters. The steps that DGFT asked the exporters to follow are given below:

The applicant firm will create a new Ecom application number for the re-activated shipping bills for which the MEIS is intended to be claimed. At the time of generation of the new Ecom number, the online system may show the applicable late cut as on the date of generation of new number.

The firm would not submit this new/ revised application after building the Ecom application and getting the new Ecom number and instead is required to register a request at contact@DGFT to remove late cut for the shipping bills and mention the Ecom application number.

On receipt of such request, the NIC team at the DGFT headquarters would edit the late cut fields in the application at the back end.
(Source: https://knnindia.co.in/news/newsdetails/sectors//dgft-issues-advisory-for-exports-over-issue-of-late-cut-imposed-by-the-system-while-applying-for-meis dated 15th Oct-2019)

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Non-Tariff Trade Regulations on the Rise in Asia-Pacific

While applied tariffs in the Asia-Pacific region have halved over the past two decades, the number of non-tariff measures (NTMs) - policy regulations other than tariffs affecting international trade - has risen significantly, according to a report launched on October 14 UNCTAD.

The Asia-Pacific Trade and Investment Report 2019 finds that NTMs are now affecting around 58 percent of trade in Asia and the Pacific. One reason for the rise of NTMs is their growing popularity as weapons of trade policy in regional and global trade tensions. This can include government procurement limitations, subsidies to export and import restrictions and import and export bans through unilateral or multilateral sanctions. Meeting these complex and often opaque rules can require significant resources, affecting in particular SMEs.

However, the report also notes that NTMs as policy instruments can often be legitimate. Most of the NTMs are technical regulations, such as sanitary and phytosanitary requirements on food. The average cost of these measures alone amounts to 1.6 percent of gross domestic product, roughly $1.4 trillion globally, but they also serve important purposes such as protection of human health or the environment.

While costly to traders, failure to have essential technical NTMs in place or their poor implementation may have serious detrimental impacts on sustainable development. For example, the report refers to the lack of NTMs covering illegal fishing and timber trade in many Asia-Pacific economies. It also points to the high economic costs for the region associated with the African swine fever epidemic, which can be linked to deficient implementation of NTMs. At the same time, new regulations on trade in plastic waste arising from amendment to the Basel Convention are promising.

On average, each imported product in Asia and the Pacific faces 2.5 NTMs, and 57 percent of imports are affected by at least one NTM. NTMs are often very different between countries, making it difficult for firms to move goods from one country to another. A synthesis of country-level private sector survey studies reveals that, on average, 56 percent of all interviewed firms reported encountering problems related to NTMs when engaging in international trade. Most significantly, it was reported that domestic procedural obstacles - rather than the required standards embedded in NTMs - are the primary reason why foreign and domestic NTMs are perceived to be burdensome. The obstacles include time constraints, informal or unusually high payments, lack of transparency, discriminatory behavior of government officials and a lack of appropriate testing facilities.

Looking ahead, the report also highlights that trade costs of NTMs can be significantly reduced by moving to paperless trade and cross-border electronic exchange of information. This could lower costs by 25 percent on average in the region, generating savings for both governments and traders of over $600 billion annually.

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Govt committed to safeguarding IP content: Commerce Secretary

NEW DELHI, Oct 16:Government of India is committed to safeguarding against infringement of originality and creativity of the makers to give a boost to services exports, Commerce Secretary Anup Wadhawan has said.
“The Government of India is committed to safeguarding against infringement of originality and creativity of the makers to give a boost to services exports. Intellectual Property (IP) is the most important asset for its creators in the media and entertainment sector,” said Dr Wadhawan in a message to the industry in the India IP Guide released at 36th MIPCOM at Cannes.

India firmly believes in the significance of IPR as the centrepiece of the industry’s future growth, he stated, according to Commerce and Industry statement on Wednesday.
Services Exports Promotion Council (SEPC), set-up by the Ministry of Commerce and Industry, has brought out the India IP Guide at Cannes in MIPCOM 2019, being held from October 14-17 for the Media and Entertainment industry.

The guide features a catalogue of over 60 Indian IPs, popular in over 160 countries. It comprehensively breaks the narrative of only low-end work being done in India.

For the second consecutive year, SEPC’s India Pavilion at MIPCOM, Cannes, France, the world’s largest content market, has enthused and attracted industry.
Over 60 Indian delegates are part of the India Pavilion delegation. Over 115 Indian companies comprising over 250 delegates are at MIPCOM.

SEPC Director General Sangeeta Godbole informed that some of the top renowned Indian Media and Entertainment companies are present at MIPCOM. Exhibition space has been increased over last year and 15 media and companies are participating for the first-time through the SEPC delegation at the India Pavilion, she said.

The Indian exhibitors and visiting companies are participating to buy, sell, serve and partner with companies present at MIPCOM from over 111 countries across the world.
India Pavilion is the one-stop place to meet content creators, audio visual service providers in animation, VFX, AR/VR, gaming, new media services, film production services and much more. Many of the Indian companies are here with their completed IPs or pitch for their in-production properties.

One of the key objectives at SEPC is to facilitate service exporters of India and handhold medium and small enterprises to expand their global footprint and to present IPs from India to the buyers and distributors from across the globe. The IP Guide is to illustrate strengths of the Indian content creators.
Intellectual Property (IP), especially in the innovation economy of today, is vital to a large number of SEPC’s stakeholders. Creation, protection and expansion of IP products alone will bring huge benefits to the sector, informed Ms Godbole.

In the coming months, SEPC plans to launch an online IP helpline, so that anybody who has simple questions can get feedback on IP related queries. SEPC will also be setting up a committee to help small and medium entertainment companies to navigate critical aspects of IP creation. The aim is to assist companies and content creators to maximise the value that IPs can provide.

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India Raising Trade Barriers against South Korea

The Directorate General of Trade Remedies of the Ministry of Commerce and Industry of India launched an investigation early this month regarding safeguard application to phthalic anhydride imported from South Korea. Earlier, Indian companies requested import restrictions, saying that the import volume of the product surged from late 2018 to early this year.

At present, the Indian government is raising trade barriers against South Korean steel and chemical products. For instance, it launched an anti-dumping investigation concerning tin plates in June this year and its investigations are expanding to cover stainless steel. It recently made a preliminary determination to impose an anti-dumping duty of 60 percent on chlorinated polyvinyl chloride.

This trend is likely to continue for a while with India’s economic growth falling short of expectations. Its quarterly GDP growth fell from approximately 8 percent to 5.8 percent from the second quarter of 2018 to the first quarter of this year.

India’s chronic trade deficit is continuing, too. “China accounts for approximately 70 percent of India’s trade deficit and this is a problem hard to solve,” said a South Korean government official, adding, “It seems that the Indian government is trying to deal with it by raising trade barriers against other countries.”

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New foreign trade policy may have simpler export promotion schemes

NEW DELHI, Oct 21:
The commerce ministry is considering rationalising and simplifying certain export promotion schemes such as EPCG in the next foreign trade policy, which provides guideline and incentives for increasing shipments, an official said.

The ministry is in consultation with all stakeholders for the preparation of the next policy (2020-25), as the validity of the old one ends on March 31, 2020, the official said.

The ministry may also include new chapters for services, and e-commerce exports besides simplifying advance authorisation and self ratification schemes.

EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.

On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.

Total exports of third party could be counted as export obligation instead of only proceeds realised from third party by EPCG holders, the official said.

Similarly in the advance authorisation scheme, export obligation period could be enhanced from the current 18 months.

For the export oriented units, the ministry is considering getting policy formulation, regulation and administration under one roof.

The ministry’s arm directorate general of foreign trade (DGFT) is formulating the policy.
At present, tax benefits are provided under merchandise export from India scheme (MEIS) for goods and services export from India scheme (SEIS).

In the new policy, changes are expected in incentives given to goods as the current export promotion schemes are challenged by the US in the dispute resolution mechanism of the World Trade Organisation (WTO).

Against this backdrop, the government is recasting the incentives to make them compliant with global trade rules, being formulated by Geneva-based WTO, a 164-nation multilateral body.

Exporters are demanding incentives based on research and development, and product-specific clusters under the new policy.

Ludhiana-based Hand Tools Association President S C Ralhan said the new policy should have provisions for refund of indirect taxes like on oil and power, and state levies such as mandi tax.

During April-September 2019, exports were down 2.39 per cent to USD 159.57 billion while imports contracted by 7 per cent to USD 243.28 billion. Trade deficit during the period narrowed to USD 83.7 billion as against USD 98.15 billion in April-September 2018-19.

Since 2011-12, India’s exports have been hovering at around USD 300 billion. During 2018-19, overseas shipments grew 9 per cent to USD 331 billion.

The government is targeting to increase the exports to USD one trillion in coming years. (PTI)
(Source: https://www.dailyexcelsior.com/new-foreign-trade-policy-may-have-simpler-export-promotion-schemes-2/ dated 22nd Oct-2019)

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Govt steps improving India's ease of doing business rank: Commerce ministry

India jumped 14 places to the 63rd position on the World Bank's ease of doing business ranking released earlier in the day
India has recorded continuous improvement in its ease of doing business ranking issued by the World Bank on account of steps taken by the government in this regard, the commerce and industry ministry said on Thursday.

India jumped 14 places to the 63rd position on the World Bank's ease of doing business ranking released earlier in the day, riding high on the government's flagship 'Make in India' scheme and other reforms attracting foreign investment. The report ranks 190 countries.

"As a result of continued efforts by the government, India has improved its rank by 79 positions in last five years (2014-19)," it said.

India has improved its rank in 7 out of 10 indicators, and has moved closer to international best practices.

"Significant improvements have been registered in resolving insolvency, dealing with construction permits, registering property, trading across borders and paying taxes indicators," it said.

The government is targeting to join the 50 top economies on the ease of doing business ranking.

Commenting on this, Deloitte chairman, Shyamak Tata said the development puts India in the rank of the most-favoured investment destinations, indicating an environment that encourages foreign investors to become part of the Indian growth story.

Rohinton Sidhwa, partner Deloitte, said that the report covers two cities -- Mumbai and New Delhi, and a single window for construction and labour related compliance in these cities have contributed to the improvement.

Former Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Ramesh Abhishek said that the ranking show "how much can be achieved with a strong political will and total commitment of officials to reforms".

Government process re-engineering, massive use of technology and constant engagement with users have helped India in improving its position in the ranking, he added.

Apart from India, the other countries on this year's 'top 10 performers' list are Saudi Arabia (62), Jordan (75), Togo (97), Bahrain (43), Tajikistan (106), Pakistan (108), Kuwait (83), China (31) and Nigeria (131).

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Commerce Ministry considers 5-year extension of income tax benefits for SEZ units

With exports and investments on the slide, the Centre is considering a five-year extension of tax benefits for units in Special Economic Zones (SEZs) by extending the sunset clause beyond March 31, 2020 to boost investor sentiment.

“There is a feeling in the Commerce Ministry that an extension of SEZ tax benefits could be critical in kick-starting the investment cycle. A five-year possible extension is being discussed with stakeholders, including the industry and government,” a government official told BusinessLine.

Removing Minimum Alternate Tax (MAT) on the export turnover of SEZs is also being considered, the official added.
According to the sunset clause, the 100 per cent income tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for the first five years, 50 per cent for next five years and 50 per cent of the ploughed back export profit for subsequent five years, will expire on March 31, 2020.

“All SEZs that are operational on or after April 1, 2020 will not be given income tax exemptions, which are the biggest drivers for investments. If the government seriously wants to do something for the economy, it should give more time to SEZs. This will help a large number of projects that have not yet been operational to take off,” said Hitender Mehta, Managing Partner, Centrum Legal.

A total of 351 SEZs have been notified so far, of which only 234 SEZs are operational. This means, there are 117 SEZs that may lose motivation to start operations if income tax benefits lapse in April 2020.

The government should either extend the sunset clause for SEZs or at least keep the SEZs notified till date out of its purview, according to the Export Promotion Council for EoUs and SEZs. “Investors joined the SEZ scheme keeping in mind the incentives available in the scheme, including income tax exemption. Withdrawing such a major incentive will hamper the image of India in the minds of investors, especially foreign players,” a representative said.

Exports from SEZs are growing at a faster rate than overall exports from the country. In April-June 2019, even as overall export growth from India slowed down to 2 per cent valued at Rs 5,62,000 crore, exports from SEZs posted a robust 15 per cent growth at Rs 1,85,763 core.

Total investments by SEZs notified under the Act so far stand at Rs 4,76,166.49 crore, and 21,17,685 persons have been provided employment in these zones.

The Commerce Ministry has been trying to convince the Finance Ministry to do away with MAT on SEZs. Earlier this year, the government slashed the MAT rate to 15 per cent from 18.5 per cent.
(Source: https://www.thehindubusinessline.com/economy/commerce-ministry-considers-5-year-extension-of-income-tax-benefits-for-sez-units/article29785055.ece dated 24th Oct-2019)

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Commerce Ministry held discussions with exporters: MEIS, credit, IGST refund issues raised

The meeting was chaired by Commerce Secretary Anup Wadhawan and was attended by export promotion councils.
Exporters raised several issues such as credit and IGST refund at a meeting called by the commerce ministry on Thursday amid dip in the country's outbound shipments. Exports contracted for the consecutive second month in September.

The meeting was chaired by Commerce Secretary Anup Wadhawan and was attended by export promotion councils.

The Federation of Indian Export Organisations (FIEO) said they flagged issues related to stoppage of filing of MEIS (Merchandise Exports from India Scheme), problems being faced by exporters at credit front and list of risky exporters.

"These issues are impacting exports. We urged the government to take action on this," FIEO Director General Ajay Sahai said.

Trade Promotion Council of India Chairman Mohit Singla, who participated in the meeting, said India's export needs strategic thrust to come out of the plateaued growth.

"We suggested harnessing GI (geographical indication) products globally for enhanced acceptability across geographies, a national trade portal to address the trade enquiries generated globally and incentivising on the degree of value addition a player in SEZ (special economic zone) brings to a product, so that they remain advantageous compared to foreign exporter," he said.

India's exports remained in the negative zone for the second consecutive month in September, contracting by 6.57 per cent to USD 26 billion mainly on account of significant dip in shipments of petroleum, engineering, gems and jewellery and leather products.

Imports also declined by 13.85 per cent to USD 36.89 billion in September, narrowing the trade deficit to a seven-month low of USD 10.86 billion, according to the government data.

Out of the 30 key sectors, as many as 22 segments showed negative growth in exports in September.

The country's outbound shipments have remained subdued so far this year. It may have a bearing on the overall economic growth, which fell to over six-year low of 5 per cent in the first quarter of the current financial year.

Industrial output declined by 1.1 per cent in August due to poor performance by manufacturing, power generation and mining sectors.

Ludhiana-based exporter S C Ralhan has called for immediate release of foreign trade policy by the government to arrest the downfall.

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India and Ecuador ink Protocol to start trade negotiations

India and South American nation Ecuador have inked the Protocol for Completion of the Joint Feasibility Study (JFS) between the two countries, in line with the government’s efforts to expand its trade presence in the region.

According to officials, the inking of the Partial Scope Agreement will contribute to improving and increase bilateral trade of goods and services and boost both economies. (Photo credit: Embassy of Ecuador)

India and South American nation Ecuador have inked the Protocol for Completion of the Joint Feasibility Study (JFS) between the two countries, in line with the government’s efforts to expand its trade presence in the region.

The Protocol was inked in New Delhi by Shyamal Misra, Joint Secretary, Ministry of Commerce and Industry and Héctor Cueva, ambassador of Ecuador in India. This has now opened the doors for both the countries to initiate trade negotiations for a Partial Scope Agreement (Preferential Trade Agreement).

Based on the analysis and exchange of information between the Ministry of Production, Foreign Trade, Investments and Fisheries of Ecuador –MPCEIP– and the Centre for Regional Trade –IIFT, the JFS has concluded that the proposed Trade Agreement is both feasible and mutually beneficial.

The two countries have great possibilities to contribute to the competitiveness of productive sectors in each Member country, and improving bilateral trade and enhancing the conditions for business cooperation.

According to ambassador of Ecuador to India, Héctor Cueva, “Once the PTA is in place the two trading partners would be in a position to reduce or eliminate customs duties on only a certain number of products traded between them.”

While India is helping Ecuador to set up a Centre for Excellency in Agriculture with the help of India, the two sides have been working on expanding the trade basket as the South American nation offers a privileged location in the region. According to the envoy, “The government of Ecuador offers favourable legislation on foreign investment and also preferential commercial access to different markets and the US dollar is its official currency”.

India represents a market of 1.3 billion inhabitants and its expected economic growth for the 2018-2023 period is 7.7% annually. Currently, Ecuador exports to the Indian market include wood, shrimp, cocoa, industrial machinery, skins and leather, among others. For its part, Ecuador imports from India: medicines, fertilizers, vehicles, propylene polymers, textiles.

Since both countries are celebrating their 50th anniversary of diplomatic relations, the two countries are seeking to strengthen and deepen their economic, commercial and cultural ties.

According to officials, the inking of the Partial Scope Agreement will contribute to improving and increase bilateral trade of goods and services and boost both economies.

Timeline for the JFS

In 2015, with the aim of further strengthening the existing trade relationship between India and Ecuador the protocol for the establishment of the India-Ecuador Joint Economic and Trade Committee (JETCO) was inked.

As has been reported earlier, the first meeting of the Joint Committee for Economic and Trade Cooperation Ecuador – India (JETCO) was held on May 17, 2017. And it then decided to explore, through a Joint Feasibility Study (JFS), the possibility of a Trade Agreement.

On May 22, 2018, the Terms of Reference for the Joint Study were approved and signed by both countries.

The Centre for Regional Trade, IIFT, from India, was assigned the task of conducting the study.

The Ecuadorian side assigned the task to the Coordination of Extra-Regional Trade Affairs Division of their Ministry of Foreign Trade and Investment for conducting the study.

The two sides completed the Joint Feasibility Study (JFS) and submitted it to their respective Governments on earlier this year in February.

After the signing of the Protocol, the negotiations with the aim to sign a Partial Trade Agreement (Preferential Trade Agreement) will start.

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India, Peru to hold next round of FTA talks in Dec

In an FTA, two trading partners significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.

New Delhi- India and South American country Peru will hold their next round of negotiations for a proposed free-trade agreement (FTA) at Lima in December, an official said. "Chief negotiators from both the countries will hold the sixth round of negotiations for the agreement in Lima in December," the official said.

In an FTA, two trading partners significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.

In the fifth round of talks, senior officials of both the sides deliberated upon issues such as national treatment and market access for goods, investments, dispute settlement, customs procedures, and trade facilitation.

The main chapters of the agreement include trade in services, movement of professionals, investments, dispute settlement, technical barriers to trade, trade remedies, rules of origin of goods, customs procedures and trade facilitation.
With growing uncertainties in its traditional markets, including the US and Europe, India is looking to enhance engagements with other regions such as Africa, South America and Central Asia.

The Federation of Indian Export Organisations (FIEO) said Peru holds enormous opportunities for domestic exports.

Engineering exporter and Ludhiana Handtool Association President S C Ralhan said, "It will be a good opportunity for domestic exporters to explore that market".

Peru ranked third among export destinations for India in the Latin America and Caribbean (LAC) region.

The bilateral trade between the nations increased to USD 3.13 billion in 2017-18 from USD 1.77 billion in the previous fiscal.

Among the top-10 commodities that India exports to Peru are motor vehicles, cars, auto components, tyres, dyes, products of iron and steel, cotton yarn and fabrics. While imports include bulk minerals and ores, gold, fertilisers, aluminium, coffee, crude oil and zinc.

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New Delhi keen for early conclusion of India-European Union free trade agreement

Even as Indian Prime Minister met over 20 European Parliamentarians who will be going to Jammu and Kashmir, New Delhi has highlighted that it is keen on the India-European Union Free Trade Agreement (India-EU FTA).

PM Narendra Modi, Speaking to European MPs called for "early conclusion of a fair and balanced Bilateral Trade and Investment Agreement (BTIA) " which he called a "priority for the government."

PM Modi meets European Union Delegation. Photograph:( ANI)

Formal talks were suspended on the proposed FTA in 2013, an FTA which will help both India and Europe in a major way. Since 2013, India, EU has met 9 times informally to talk about the FTA with August 5, 2019, was the last time both sides met to discuss the issue.

Key issues why talks failed were on customs duty on wine, auto manufacturing and labour issues. While India did not want an FTA without investments being part of it, the EU wanted FTA on goods. On European cars, Brussels said it wants to sell full manufactured cars to be sold in India to which New Delhi pointed out to its policy of local manufacturing.

High customs on wine in India was another thorny issue as well as EU raising the issue of labour and human rights issues. EU also wanted to be part of the government procurement, which India is not keen on.

Next year the 15th India-EU summit is expected to happen in Brussels, which can spur the talks on the FTA. The last India EU summit happened in 2017.
The development on EU India FTA comes even as next week could see mega RCEP FTA being inked in Bangkok on the sidelines of East Asia summit. India is keen to be part of RCEP whose part will be China, ASEAN, Australia etc.
(Source: https://www.wionews.com/india-news/new-delhi-keen-for-early-conclusion-of-india-european-union-free-trade-agreement-258539 dated 28th Oct-2019)

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Efforts on to fast-track India's free trade agreements with UK, EU

As UK’s deadline for EU exit is postponed to January 31, India is burying past hiccups to speed up free trade pacts.

NEW DELHI: With European leaders agreeing on Monday to extend United Kingdom’s deadline for exiting from the European Union (EU) till January 31, a quiet diplomacy is gaining ground from all concerned on speeding up India-UK and India-EU free-trade pacts.

According to commerce ministry officials, despite past hiccups and slow pace, India is working to speed up negotiations on a free trade pact with both Britain and the EU to address the post-Brexit situation.

India’s software, textile and garment sectors are keen on a trade pact with the United Kingdom. These sectors are major foreign exchange grossers from the country, along with gems and jewellery.

The IT sector and other firms, which have invested in Britain and do business with EU from Britain, also want the UK to incorporate clauses in its Brexit deal with EU in order to safeguard the taxation and other interests.

According to top government officials, “Britain wants larger access in our financial sector and is projecting London as the first choice for Indian companies raising global finance. We have supported that to some extent with Indian PSUs launching all their masala bonds from London.” India, in its bid to pave way for a post-Brexit deal, has already agreed to allow 100 per cent foreign direct investment in insurance brokerages. Llyod’s has started a reinsurance office in Mumbai two years ago; this is eventually expected to turn into an insurance trading centre.

Britain’s Crown Prince Charles is scheduled to visit India next month and the trade deal is likely to figure in talks with him. However, diplomatic sources say that India is unlikely to be among the first lot of countries with which UK signs trade deals post-Brexit. “Some of those deals are already being signed, such as the Korea-UK FTA. The talks with India have been a bit more complex,” they said.

“What is far more important for us is the trade deal with EU,” said Prof Biswajit Dhar of JNU, “Those talks have been held up over issues on tariff and the entry for European automobiles and labour standards that they are insisting on.” India and EU have a bilateral trade of around $115 billion, of which $21 billion is accounted for Britain.

Europeans have indicated that they will not be able to move forward politically without having an understanding on opening up of the Indian automobile market. They want to sell completely built-up cars at some stage and seek relaxations in tariff on parts and car manufacturing kits. Officials said the negotiations hinge on the timelines for opening up.

“A delayed opening up can be looked at. But no opening up in the next five years can be allowed, given the precarious condition of our own automobile industry where sales have contracted by as much as a quarter,” said a commerce ministry official.

Other sticking points include India’s demands for freer movement of professionals and EU’s demand that duties on wines and liquors be progressively reduced. “These can be sorted out,” said an official.

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India not in a hurry to sign FTAs, but trade isolation not good for country: Commerce Minister

Union Minister of Commerce and Industry & Railways, Piyush Goyal hinted that India is looking at new opportunities and new markets of exports with other geographies like the United States, the European Union and the United Kingdom

Union Minister of Commerce and Industry & Railways, Piyush Goyal, has said that his ministry has carried out the most extensive stakeholder consultations as part of its ongoing engagement with the negotiating partners of the proposed 16 countries Regional Comprehensive Economic Partnership (RCEP) Agreement. The minister said that India will never sign any trade agreement without consultations.

During an interaction after the release of the report of the High-Level Advisory Group (HLAG) on boosting international trade, Goyal assured that India will always protect its strategic and economic interests while engaging in multilateral talks. He urged citizens to talk, argue and understand issues and not indulge in creating fear psychosis as the Government of India will never sign on any trade agreement without consultations.

The HLAG report has been prepared by the Advisory Group led by Dr. Surjit S. Bhalla to assess the global environment and make recommendations for boosting India's share and importance in global merchandise and services trade, managing pressing bilateral trade relations, and mainstreaming new age policymaking.

The Minister said that the report shows the way forward for India to become an attractive investment destination by grasping all the opportunities available so that India can achieve the target of exports contributing one trillion USD to the GDP. Commerce and Industry Minister thanked the Advisory group for the bold report that has recommendations for industry both manufacturing and services and sectors like textiles, finances and tourism so that India can take its manufacturing potential to 25 per cent of the GDP.
The minister hinted that India is looking at new opportunities and new markets of exports with other geographies like the United States, the European Union and the United Kingdom. In a globalized world India cannot remain isolated as it will not be in the interests of the industry and the consumers, he added.

In a separate event earlier during the day, Goyal, told the state trade and industry ministers that India will not enter into any free trade agreements (FTAs) or economic partnerships in a rush as any free trade agreement has to be a two- way benefit arrangement and a win-win for all sides. Speaking at a State Consultation Workshop for Make in India in New Delhi, Goyal re-emphasised India's position that while the is in talks with the European Union and the United Kingdom for FTAs and dialogue will begin in a few months, the government will enter in FTAs on its own terms and will take all measures to protect the interests of the country, the industries and ensure job creation.

India is not in a weak leadership to meet deadlines of regional FTAs, the minister said.

Ministers of State for Commerce and Industry Hardeep Singh Puri and SomParkash, Commerce and Industry Ministers from 27 States and Secretary DPIIT were present at the workshop.

The HLAG, which prepared the report consisted of S.Jaishankar, former Foreign Secretary, Rajeev Kher, former Commerce Secretary and Member, Competition Appellate Tribunal, Sanjeev Sanyal, Principal Economic Advisor, Government of India, AdilZainulbhai, Chairman, Quality Council of India, Dr.HarshaVardhana Singh, former DDG, WTO, Dr.ShekharShah,DG, NCAER, Dr. Vijay Chauthaiwale, Foreign Policy Advisor, Dr.Pulok Ghosh, IIM Bangalore, Jayant Dasgupta, former Ambassador of India to the WTO, Rajiv K Luthra of Luthra&Luthra and Chandrajit Banerjee, DG, CII.

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WTO panel upholds US case, rules India's export subsidies illegal

The panel largely agreed with US claims challenging export subsidies granted in the form of exemptions from customs duties and a national tax, while rejecting some US arguments

Upholding a complaint brought by the United States, a World Trade Organization (WTO) panel ruled on Thursday that India’s export subsidies were illegal and should be removed.

The panel largely agreed with US claims challenging export subsidies granted in the form of exemptions from customs duties and a national tax, while rejecting some US arguments. It called on India to withdraw the export-contingent subsidies within periods varying from 90 to 180 days.

The US Trade Representative's Office, in a statement, said that the panel had agreed that India provided prohibited subsidies to Indian exporters worth more than $7 billion (5.4 billion pounds) annually, including to producers of steel products, pharmaceuticals, chemicals, IT products and textiles.

India will now have to re-work these incentive schemes to comply with the WTO ruling. However, it can file appeal against it at an appellate body of the WTO through a dispute-settlement mechanism.

On March 14 last year, the US had taken India to WTO's dispute-settlement mechanism over New Delhi's export-incentive schemes, including the Merchandise Exports from India Scheme (MEIS); Export Oriented Units (EOUs) and Export Promotion Capital Goods (EPCG) scheme; and duty-free imports scheme.

The US had alleged that these schemes were harming American companies.

The dispute panel in its report has concluded that most of these schemes like EOU, Electronics Hardware Technology Parks Scheme, EPCG, and MEIS are inconsistent with certain provisions of WTO's Agreement on Subsidies and Countervailing Measures.

The dispute panel has recommended that India withdraw the prohibited subsidies under DFIS within 90 days from adoption of the report.

It should also withdraw the prohibited subsidies under the EOU/EHTP/BTP schemes, EPCG, and MEIS, within 120 days and SEZ scheme within 180 days.

The exemptions from customs duties on importation under the EOU/EHTP/BTP (Bio-Technology Parks) schemes were subsidies contingent upon export performance inconsistent with certain articles of the agreement, the ruling said.

"The duty credit scrips awarded under MEIS are subsidies contingent upon export performance, inconsistent with Articles 3.1(a) and 3.2 of the SCM Agreement," it added.

According to the procedure established by the WTO, the first step to resolve a trade dispute is engaging for consultation process. If two trading partners having dispute could not resolve at that level, one of them can ask for settlement of dispute panel for hearing. The panel's report or ruling can be challenged at the appellate body.

(Source: https://www.business-standard.com/article/economy-policy/wto-panel-upholds-us-case-rules-india-s-export-subsidies-illegal-119103101565_1.html dated 30th Oct-2019)

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WTO rules against India’s export subsidies: All you need to know

The WTO's dispute settlement panel ruled that India's export subsidy schemes, including the provision for special economic zones, violated core provisions of global trade norms.

At a time when India is going through a period of slowdown, it faces another setback as the World Trade Organisation (WTO) ruled the country's domestic export subsidy programmes as illegal.

The WTO's dispute settlement panel ruled that India's export subsidy schemes, including the provision for special economic zones, violated core provisions of global trade norms.

WTO RULING EXPLAINED

Upholding US's complaints in the case, the three-member dispute settlement panel comprising Jose Antonio S. Buencamino, Leora Blumberg, and Serge Pannatier rejected India's claims that it was exempted from prohibition on export subsidies under the special and differential treatment provisions of the WTO's Agreement on Subsidies & Countervailing Measures (SCM).

Some of the schemes that will be affected by the WTO's ruling include Merchandise Exports from India Scheme (MEIS), export oriented units (EOU) scheme and sector-specific schemes, including Electronics Hardware Technology Parks (EHTP) scheme and Bio-Technology Parks (BTP) scheme, Export Promotion Capital Goods (EPCG) scheme; and duty-free imports for Exporters Scheme.

The panel further ruled that India is not entitled to provide subsidies depending on export performance and said its per capita gross national product crossed $1,000 per annum.

It is worth noting that under Article 3.1 of the WTO's SCM agreement, all developing countries with gross per capita of $1,000 per annum for three consecutive years are required to stop all export incentives.

The US had earlier accused India of giving prohibited subsidies to Indian steel producers, pharmaceuticals, chemicals, information technology, textiles and apparel.

While the panel ruled in favour of US and urged India to withdraw the subsidies without delay.

"Accordingly, we recommend that India withdraw, without delay, the subsidies we have found to be inconsistent with Articles 3.1(a) and 3.2 of the SCM Agreement," the panel said.

"We conclude that, to the extent the measures at issue are inconsistent with the SCM Agreement, India has nullified or impaired benefits accruing to the US under this agreement," it added.

While the panel upheld most of the claims made by the US, it rejected some points pertaining to subset of exemptions from customs duties and an exemption from excise duties.

WHAT NEXT?

The WTO dispute settlement panel has asked India to withdraw the concerned export subsidy schemes within a time period of 90 days from the adoption of the report.

It also asked India to withdraw prohibited subsidies under the EOU/EHTP/BTP schemes, EPCG and MEIS, within a period of 120 days and SEZ scheme within 180 days.

However, India has the right to challenge the ruling before the appellate body of the WTO dispute settlement mechanism with regards to export subsidy schemes. New Delhi has a month to appeal against the WTO's order.

On the other hand, India could rework the export incentives to comply with the WTO ruling, but experts indicate that any change to the export subsidies will impact traders and the government will have to immediately look at working out alternatives.

Under the various schemes, domestic companies are currently receiving billions in subsidies on an annual basis. Withdrawing the subsidies may have a significant effect on the performance of such companies.

US-INDIA TRADE DISPUTE RECAP

Last year, the US had taken India to the WTO's over the issue of export subsidy schemes, claiming that they were hurting American companies. The US alleged that some subsidy programmes run by the Indian government were giving undue advantage to Indian businesses.

The Donald Trump administration filed a case against India citing a violation of the SCM Agreement as India's gross national product per capita was over $1,000.

While the government had earlier said that it would phase out the aged export subsidy programmes, no such scrapping has occurred. It has also come to light that New Delhi is already working on rolling out new schemes to replace the old programmes.

(Source: https://www.indiatoday.in/business/story/wto-rules-against-india-s-export-subsidies-all-you-need-to-know-1614635-2019-11-01 1st NOv-2019)

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India to appeal against WTO dispute panel’s ruling on export promotion schemes

The New Foreign Trade Policy (2020-25) is likely to be in place with alternative schemes by the time some existing ones are withdrawn

India has decided to appeal against a World Trade Organisation dispute panel’s verdict which ruled that its popular incentive schemes for exporters such as the Merchandise Export from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) scheme flouted multilateral trade norms and should be withdrawn.

"New Delhi is going to appeal against the ruling. There are a number of things that we don't agree with. The panel decision is being scrutinised by our legal team at the moment, and we will elaborate on the matter soon," a senior government official told BusinessLine.

Once India appeals, it will have a time-frame much beyond the 90 days-180 days suggested by the panel for withdrawing the schemes.

"It seems that the government will have enough time to implement the new Foreign Trade Policy (2020-25) scheduled to be announced in April 2020, where at least some of the schemes could be replaced with the ones that are compliant with existing norms. In case of others, where the country firmly believes that no rules have been broken, India can fight it out at the WTO,” a Delhi-based trade expert said.

WTO dispute panel's ruling

A WTO dispute panel, on Thursday, backed several claims filed by the US against export promotion measures adopted by India and rejected New Delhi’s contention that it was exempted from the prohibition on export subsidies under the special and differential treatment provisions of the WTO Agreement on Subsidies and Countervailing Measures (SCM).

The panel, however, rejected the US' claims that the exemption from central excise duty on domestically procured goods under the EOU/EHTP/BTP schemes and the exemptions from customs duties on importation under DFIS are subsidies contingent upon export performance.

WTO's recommendations

As per the recommendations, India needs to withdraw the prohibited subsidies under the EOU/EHTP/BTP Schemes, EPCG Scheme, and MEIS, within 120 days from adoption of the report.

Since the withdrawal of tax-related incentives for SEZ units could require amendment to the SEZ Act, the panel recommended a 180-days time-period for the same, after the adoption of the report. For schemes like the DFIS, which can be amended through a notification, a shorter 90-day time-period for withdrawal has been given.

In case India files an appeal against the ruling, the time available for withdrawal will get further extended, especially since the normal functioning of the Appellate Body is likely to get disrupted in December this year with the US continuing to oppose the appointment of new judges.

While the Centre was initially considering replacement of the MEIS scheme voluntarily by January 1, 2020, with the Remission of Duties or Taxes on Export Product (RoDTEP) scheme — a scheme to remit all input taxes at the State or Central level, which is compliant with WTO norms — the recent fall in India's exports made it consider an extension of the scheme till the end of March 2020 as remissions were higher under it.

The WTO has called out for removal of most of India’s export incentives because India’s per capita Gross National Income has increased beyond $1000 per annum, which is the threshold beyond which export subsidies are not allowed.

(Source: https://www.thehindubusinessline.com/news/wto-dispute-panel-calls-for-withdrawal-of-export-promotion-schemes/article29850376.ece dated 1st NOV-2019)

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India, Germany agree to boost industrial cooperation

NEW DELHI — India and Germany agreed on Friday to enhance cooperation in tackling climate change, cybersecurity, skill development, artificial intelligence, energy security, civil aviation and defense production.

The two countries signed several agreements, with Prime Minister Narendra Modi saying India is eager to benefit from Germany's expertise.

Modi said he also hopes to work together in fighting global terrorism and extremism. He did not give any details.

Visiting German Chancellor Angela Merkel said her country would like to collaborate with India in infrastructure projects, waste management and water supply.

Merkel has been accompanied by several ministers and state secretaries as well as a business delegation.

She told journalists accompanying her that Germany wanted a de-escalation and an easing of tensions in Indian-controlled Kashmir, where New Delhi imposed a security clampdown after removing its semi-autonomous status and beginning direct federal rule of the disputed area.

"In particular, we want India and Pakistan to find a peaceful solution together," Merkel said. "I still want to listen first to the prime minister's arguments today too. But the situation for the people there at the moment isn't sustainable or good."

(Source http://www.startribune.com/india-germany-agree-to-boost-industrial-cooperation/564211772/ dated 1^st Nov-2019)

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India decides to not join RCEP agreement, Modi says deal does not address our concerns

India has decided to not join the Regional Comprehensive Economic Partnership (RCEP) agreement with China and other Asean countries over imbalance in the agreement that was reached.

PM Modi at the Asean summit in Bangkok. (AP photo)

HIGHLIGHTS

• Sources say India has decided to not join the RCEP trade agreement
• During the RCEP meeting in Bangkok, PM Modi said the agreement reached does not address India's concerns
• The proposed agreement was meant for 10 countries of the Asean

India has decided to not join the Regional Comprehensive Economic Partnership (RCEP) agreement over India's concerns not being addressed in the deal.

According to sources in the government, India has decided not to join RCEP and PM Narendra Modi has stood firm on the issue that India's concerns were not addressed in the agreement. Sources said the RCEP agreement with China and Asean countries does not reflect "its original intent" and the outcome is "not fair or balanced".

In his speech at the ongoing RCEP summit in Bangkok, PM Modi said, India stands for greater regional integration as well as for freer trade and adherence to a rule-based international order. India has been pro-actively, constructively and meaningfully engaged in the RCEP negotiations since inception. India has worked for the cherished objective of striking balance, in the spirit of give and take."

"Today, when we look around we see during seven years of RCEP negotiations, many things, including the global economic and trade scenarios have changed. We cannot overlook these changes. The present form of the RCEP Agreement does not fully reflect the basic spirt and the agreed guiding principles of RCEP. It also does not address satisfactorily India's outstanding issues and concerns In such a situation, it is not possible for India to join RCEP Agreement," PM Modi added.

Sources said China was forcefully pushing for inking the deal during the RCEP summit on Monday, which was seen as an attempt to counter-balance the impact of its lingering trade war with the US as well as to project the region's economic might to the West.

However, sources have said India has firmly stood its ground against signing up for the agreement.

The proposed free-trade agreement includes 10 member countries of the Association of Southeast Asian Nations (Asean) and six of the bloc's dialogue partners -- China, Japan, South Korea, India, Australia, and New Zealand.

If finalised, the RCEP would have become the world's largest free trade area, comprising half of the world population and account for nearly 40 per cent of the global commerce and 35 per cent of the GDP.

The RCEP negotiations were launched by ASEAN leaders and the six other countries during the 21st ASEAN Summit in Phnom Penh in November 2012. The objective of launching RCEP negotiations was to achieve a modern, comprehensive, high-quality, and mutually beneficial economic partnership agreement among the ASEAN member states and its FTA partners.
(Source:-https://www.indiatoday.in/india/story/india-pm-modi-decide-to-not-join-rcep-agreement-1615655-2019-11-04 dated 5th November 2019)

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Review of FTA with Asean will help balance trade: PM Narendra Modi

Chemical & petrochemical industry must protect environment at any cost: Chemical Secy

New Delhi, Nov 5 () India's chemical and petrochemical industry should protect environment at all cost even if development work is hit slightly, a senior government official said on Tuesday.

Addressing a sustainability conference organised by Indian Chemical Council (ICC), Chemicals and Petrochemicals Secretary P Raghavendra Rao said: "Please do ensure that whatever we do, whatever we talk of investment, growth and development do

not lose the sight, how we protect environment". The industry must keep in mind that "environment need to be protected at all cost, even if growth and development takes a

slight hit", he added. Talking about pollution in the national capital region (NCR), the secretary said this situation of being in a gas chamber cannot be sustained.

He said it was not only burning of crop residues but fire crackers, excess use of chemicals and pesticides and vehicles among others are contributing to this pollution level. The secretary rued that the country's chemicals and petrochemical industry is sixth largest in the world but it has a share of only 3 per cent. However, he said the growth of this USD 160 billion industry is higher than the country's GDP growth.

The secretary said the government is focusing on the growth of Petroleum, Chemical and Petrochemical Investment Regions

(PCPIRs) projects and will hold a conference soon to attract investments and make these PCPIRs a growth of engine. MJH SHWSHW

(Source: https://timesofindia.indiatimes.com/business/india-business/chemical-petrochemical-industry-must-protect-environment-at-any-cost-chemical-secy/articleshow/71925579.cms dated 5th Nov-2019)

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India proposes making 72 chemical standards mandatory.

India’s Ministry of Chemicals and Fertilisers has announced plans to make 72 chemical and petrochemical standards mandatory. If the proposals go ahead, domestic and foreign companies will be required to obtain permits before they can import, manufacture or use the affected substances.

The standards cover various basic chemicals, as well as many commodity polymers, such as polyethylene, polypropylene, polyvinyl chloride and polyurethane.

In April, the ministry proposed making 41 standards mandatory. But, "in a subsequent meeting held on 31 October, it broadened the scope and divided 72 chemicals into four categories, which includes chemicals for which standards are either to be made or revised," says Tavinder Sidhu, partner at MVKini law firm in New Delhi.

The purpose, he adds, is to "standardise the chemicals to conform with the harmonised system of coding, which is followed internationally … and make it more transparent in order to reduce fake and substandard quality."

The ministry plans to ask the Bureau of Indian Standards (BIS) to draw up 14 new standards and revise 18 existing ones.

‘Potential trade barrier’

But the American Chemistry Council says the proposed move will not advance the ministry’s stated aim of improving the environment, health, safety or national security.

"Permitting adds a significant level of bureaucracy and significantly delays the process of importation, especially with the inclusion of common non-hazardous polymers into the coverage of mandatory standards," the ACC says.

"In today’s global trade, the downstream customers who manufacture products using the common polymers have the responsibility and also interest to ensure the quality of these. A permit for importing such listed chemicals adds little value and creates significant trade barriers."

If the standards become mandatory, affected products will also require certification to prove conformity. And companies will need to display logos or labels on all packaging.

"Historically," the ACC says, "the certification scheme has been voluntary in nature and, under the recent proposal, it becomes mandatory when specifically notified."

The trade body recommends that the US government press India to provide more opportunities to consult with industry and the public before the standards become mandatory, and promote alignment of the BIS standards with international approaches, such as the UN Globally Harmonized System (GHS) of classifying and labelling of chemicals.

(Source: https://chemicalwatch.com/84247/india-proposes-making-72-chemical-standards-mandatory#overlay-strip dated 6^th Nov-2019)

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India, EU to push for free trade pact again

Move follows govt. decision to pull out of RCEP; Europe sceptical about timeline

India and the European Union committed once again to restarting talks on a free trade agreement, but did not spell out a roadmap on how to break the six-year old logjam in talks.

European officials also remained sceptical about how quickly the talks could be restarted, given a number of issues, including India’s decision to cancel Bilateral Investment Treaties with 58 countries, including 22 EU countries in 2016, and the Brexit process.

“[India and the EU] underlined the necessity of having a Bilateral Trade and Investment Agreement (BTIA) and agreed to continue working towards it,” said a statement released on Saturday after a meeting of the India-EU Strategic Partnership Review, led by MEA secretary Vijay Thakur Singh and European External Action Service Deputy Secretary General EU Christian Leffler.

he renewed push for the BTIA, which includes both trade and investment, follows the government’s decision to pull out of the ASEAN-led Regional Comprehensive Economic Partnership last week.

‘Prefers FTA with West’

Commerce Minister Piyush Goyal, as well as Ministry of External Affairs (MEA) officials have said that rather than the 15-nation grouping which includes China, India would like to explore FTAs with the West, including EU and the United States. Prime Minister Narendra Modi and German Chancellor Angela Merkel also pushed for the BTIA during their bilateral meeting on November 1.

Speaking to The Hindu, Pekka Haavisto, Foreign Minister of Finland, who is the EU Council President this year, however, said that the deal could take a “long, long time”.

In 2013, India and the EU suspended talks after reaching a dead end on issues such as tariff on European cars and wine, on data security, and India’s desire to include services and more visas for Indian professionals in the agreement. Since then, despite meeting several times, negotiators have not been able to even agree on the terms for restarting the talks, despite a firm announcement by Mr. Modi and the EU President at a summit in 2017.

“Unfortunately the EU-India summit keeps getting postponed, so [one] step is to have regular summits.” Mr. Haavisto said.

He also cited the ongoing Brexit process for delaying the EU’s other trade deals, but said that the EU had managed to close FTAs with China, Japan and the MERCOSUR Latin American countries.

Another major problem, he explained, was that the NDA government’s decision to cancel investment treaties had slowed interest from European companies who did not want to “risk” investing until another investment protection agreement was put in place, which could be discussed at the next EU-India summit in March 2020.

(Source: https://www.thehindu.com/business/Economy/india-eu-to-push-for-free-trade-pact-again/article29932663.ece dated 9th Nov-2019)

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WTO ruling against export incentives: Should Indian exporters be worried?

A World Trade Organisation dispute panel ruled on October 31 that India's key export promotion schemes violated WTO rules and hence should be withdrawn within six months
A World Trade Organisation (WTO) dispute panel ruled on October 31 that India's key export promotion schemes violated WTO rules and hence should be withdrawn within six months. The verdict has raised several questions. What will be the impact of the ruling for India? Will Indian export of steel products, pharmaceuticals, chemicals, information technology products, textiles and apparel continue to be competitive in the absence of this subsidy? Is the ruling final? The short answer is that the ruling, in itself, does not pose an immediate threat to Indian exports. Before we come to explain why, let's understand some basics:
The issue

The verdict was based on a complaint filed by the United States of America (USA), which argued that five export subsidy schemes worth over $ 7 billion that India offers are not compatible with WTO rules. Soon after the verdict, United States Trade Representative (USTR), the government body that strives to protect the US industry, called it a "resounding victory for the United States" and the country "is using every available tool, including WTO enforcement actions, to ensure American workers are able to compete on a level playing field".

The ruling covered India's schemes such as the Export Oriented Units (EOU) Scheme and Sector-Specific Schemes, including the Electronics Hardware Technology Parks (EHTP) Scheme and the Bio-Technology Parks (BTP) Scheme (the EOU/EHTP/BTP Schemes), the Merchandise Exports from India Scheme (MEIS), the Export Promotion Capital Goods (EPCG) Scheme, the Special Economic Zones (SEZ) Scheme and the Duty-Free Imports for Exporters Scheme (DFIS). The complaint was that these schemes provide for certain exemptions from (or reductions of) customs duties or taxes, or for the granting by the government of freely transferable "scrips" that can be used for payment of customs duties on certain goods, payment of excise on certain goods, and payment of certain other dues such as for shortfalls in export obligation. There are more than 8,000 products eligible for the "scrips", nearly double the number of products covered since its introduction in 2015. Exports under the SEZ have increased over 6,000 per cent from 2000 to 2017 and in 2016 accounted for over $82 billion in exports, or 30 per cent of India's export volume. Terming these measures as export subsidies, US had pointed out that it provides an unfair competitive advantage to recipients, and WTO rules expressly prohibit them. It also noted that India has been using a limited exception to this rule meant for specified developing countries until they reach a defined economic benchmark ($1000 per capita GDP), though it continues it even after it surpassed the per-capita benchmark in 2015. "India's exemption has expired, but India has not withdrawn its export subsidies. The panel report rejects India's assertion that it is entitled to additional time to provide export subsidies even after hitting the defined economic benchmark.  The panel report concludes that each program is an export subsidy inconsistent with India's WTO obligations," the USTR states.

The appeal

The first reason why the verdict does not pose an immediate worry is that due to purely technical reasons, it may take several months before the ruling will become enforceable. India is certain to utilise the provision to appeal against WTO rulings. An Appellate Body can look into such appeals and give a final verdict (within 60 days in this case). The last date for India to approach the Appellate Body (in this case) is November 30. However, by December 11, two of the three remaining jury members of the Appellate panel will retire. With no postings happening to fill the vacancies since 2017 (due to the opposition from the US), India's appeal against the WTO verdict is likely to get stuck for months.

The second reason is that the Central government has been planning to stop the export incentives that have been questioned under WTO rules for quite some time. A couple of months before the dispute panel's ruling, finance minister Nirmala Sitharaman had announced a new scheme - Remission of Duties or Taxes on Export Product (RoDTEP) - to incentivise the exports at an estimated cost of Rs 50,000 crore as a replacement for the biggest scheme in the WTO ruling list, the Merchandise Exports from India Scheme (MEIS). Since the total revenue impact of MEIS for 2018-19 is estimated to be Rs 36,615 crore, the amount earmarked for RoDTEP is expected to more than adequately incentivise exports for all the schemes that may have to be withdrawn in the wake of adverse WTO ruling. While the revenue impact of EOU/EHTP/STP/SEZ schemes during 2018-19 is estimated to be Rs 5,734 crore, EPCG is Rs 3,220 crore and Duty Free Import Authorization Scheme is Rs 673 crore.

The third reason why India's problems will not be aggravated due to the WTO ruling is that there are bigger problems that are already turning Indian exports non competitive and unless urgent measures are taken to address these issues -high cost of production, logistics, financing etc - mere incentives will not take Indian exports very far in the long-term. Any move to clear these bottlenecks will more than compensate for any setbacks industry may face due to loss of incentives.

While India should be concerned about any adverse ruling from WTO, it has to set its house in order to ensure the growth of its external trade.

(Source:https://www.businesstoday.in/current/economy-politics/wto-ruling-against-export-incentives-should-indian-exporters-be-worried/story/389934.html dated 12th NOv-2019)

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India resumes buying Malaysian palm oil as Kuala Lumpur offers discount

Refiners in India have resumed buying Malaysian palm oil after a gap of nearly a month and contracted around 70,000 tonnes of shipments in December as Kuala Lumpur has been offering a $5 (Rs 360 roughly) per tonne discount over supplies from rival Indonesia, five traders told Reuters on Thursday.

The resumption in purchases by India, the biggest buyer of Malaysian palm oil this year, could support Malaysian palm oil prices, which are trading near their highest level in two years.

Indian refiners stopped purchases from Malaysia last month fearing India could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticised India for its actions in Kashmir.

Malaysian palm oil is available at a $5 discount amid congestion at Indonesian ports, said a Mumbai-based dealer with a global trading firm.

“This is giving a few buyers a reason to start buying Malaysian oil in small quantities to run their refineries,” the Mumbai-based dealer said.

(Source: https://indiaseatradenews.com/india-resumes-buying-malaysian-palm-oil-as-kuala-lumpur-offers-discount/ dated 15^th Nov-2019)

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Opinion | Asia’s miracle economies have lessons for India’s trade policy

The country must identify strategic growth sectors and companies and then push them to achieve global competitiveness

In walking away from the Regional Comprehensive Economic Partnership agreement (RCEP) in Bangkok earlier this month, India signalled to the world that it could not compete in a free trade arrangement with the other 15 member countries of RCEP. This has exposed the weak underbelly of the world’s third-largest economy (in terms of purchasing power parity), the fastest-growing major economy, etc.

However, RCEP is a play with many acts, and Bangkok was only the end of act two. There will be other acts to follow. China, the prime mover behind the agreement, has already signalled that India’s concerns would be addressed, as have Australia and other members. Where we go from here remains to be seen. But why did India walk away? Biswajit Dhar (The Hindu, 7 November 2019), Deepak Nayyar (Mint, 8 November 2018) and others have explained why India had little choice but to withdraw at this stage.

First, Indian industry cannot compete with industrial products of most RCEP partners, particularly China, without tariff protection. India’s initial negotiations were for tariff elimination on 80% of imports from the Association of Southeast Asian Nations (Asean) group of countries, and only 42.5% of imports from China, but India was later forced to accept much wider tariff elimination. It was also unable to secure strict rules of origin and other safeguards. So, RCEP, it was feared, would lead to a surge in industrial imports.

Second, low-productivity Indian agriculture—largely based on small and marginal farms—cannot compete with the high-productivity agri-businesses of other countries. But agriculture is the main livelihood for a large share of the Indian workforce. India has thus resisted agricultural liberalization and tariff reductions in all free trade agreements (FTAs). Similarly, India is the world’s largest dairy producer, but is inefficient and its dairy sector needs tariff protection from New Zealand and Australia. All this would have become history by joining RCEP.

A third issue is e-commerce. Conforming to World Trade Organization rules, imports by RCEP countries through e-commerce platforms won’t be subject to any tariffs, implying a much larger opening of domestic markets beyond the tariff cuts. RCEP provisions on cross-border transfer of information and server location would also conflict with the draft national policy on e-commerce and data security. There is a similar conflict in cross-border investment provisions of RCEP and India’s bilateral investment treaties.

For these and other reasons, virtually all stakeholders, including industry, trade unions and farmer organizations, lobbied against joining RCEP. So did all groups across the political spectrum, from the Bharatiya Janata Party and its affiliate Swadeshi Jagran Manch to the Congress party to the Communist Party of India (Marxist). Politically, the Narendra Modi government had little option but to walk away.

Only some of us economists who believe a low-tariff free trade regime can force Indian enterprises to become more competitive have lamented India’s exit. It is seen as part of an ongoing reversal of the liberal trade regime established 25 years ago. Instead of going down, average tariffs in the manufacturing sector have gone up from 11% to around 14% in the last three years and in agriculture, from around 33% to nearly 39%. Quantitative trade restrictions have also come back in various ways. However, it is important to look at the evidence. India’s experience with FTAs has largely been disappointing. While trade has grown, so has India’s trade deficit with most of these countries/groups. It was believed that India had a comparative advantage in services. However, as Amita Batra pointed out (Business Standard, 28 August 2018), India has not gained any more from FTAs in services than in goods. There is little evidence that FTAs have nudged Indian enterprises towards greater competitiveness.

So, where do we go from here? Global value chains (GVCs) have emerged as the dominant channels for international trade, and these GVCs are concentrated within regional FTAs. To grow its exports, India has no choice but to join a regional FTA. In Asia, after Donald Trump walked away from the US-led Trans-Pacific Partnership (TPP), designed to exclude China, the China-led RCEP remains the only game in town. It’s a mega regional FTA, with its members accounting for about 40% of world gross domestic product (in PPP terms), and an even larger share of the world population, and a large share of global trade. All members of the Comprehensive and Progressive Trans-Pacific Partnership—which rose from the ashes of TPP—are also members of RCEP. So, it is still India’s best bet. Whether it can achieve in a few months the better terms it failed to obtain in seven years is doubtful. But India must keep the RCEP option open as long as possible. Meanwhile, India should energetically explore FTAs in places such as Europe, the Americas and Africa.

Membership of FTAs is a necessary but not sufficient condition for rapid export growth. This will require Indian enterprises to strive more energetically for higher productivity. The “miracle economies" of East Asia, Japan, Korea, China, Taiwan, etc., have shown how “hard" states have made this happen through industrial policy. Identify strategic industries important for rapid growth, pick winners in those industries, support them to grow to global scale, and then force them to become competitive or lose state support. There is nothing equitable about this approach, but this is how East Asian countries came to dominate the global economy. Whether India’s “soft" state has the capacity and will to follow this path, or not, will determine whether its economy emerges as a model of successful state-led capitalism or flounders in the morass of crony capitalism.

(Source: https://www.livemint.com/opinion/online-views/asia-s-miracle-economies-have-lessons-for-india-s-trade-policy-11573748092248.html dated 14th Nov-2019)

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Chemexcil Notices

Incoterms 2020 released by International Chamber of Commerce (ICC)

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RBI EDPMS, Exemption from provisions of Caution listing extended till 31/12/2019

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DGTR, Final Findings of New Shipper Review (NSR) pertaining to Anti-Dumping Duty imposed on the imports of “Saturated Fatty Alcohols” originating in or exported from Indonesia, Malaysia, Thailand and Saudi Arabia, as requested by Pt. Energi Sejahtera Mas, (PTESM) (Producer from Indonesia) and Sinarmas Cepsa Pte. Ltd. (SCPL) (Exporter from Singapore) initiated on 15.01.2019

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GST, Eligibility to file a refund application in FORM GST RFD-01 for a period and category under which a NIL refund application has already been filed

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DGFT, Issue of Late Cut being imposed by the system while applying MEIS on reactivated shipping bills

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GST, Notifications issued to implement the decisions of recent GST Council meeting

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DGFT, Amendment in Import Policy Condition of Urea under Exim Code 31021000 in the ITC (HS) 2017, Schedule- I (Import Policy)

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Reduction of excessive dependence on imports of chemical & petrochemical sector, Reduction of Duties on certain Chemicals Imported from USA

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DGFT, Amendment in Import Policy Condition of Urea under Exim Code 31021000 in the ITC (HS) 2017, Schedule- I (Import Policy)

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JNCH Claim of refund amount on account of double-payment of Customs Duty, Eligibility Criteria for availing of DPD Scheme by Importers

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CBIC, Clarification regarding inclusion of cesses, surcharge, duties, etc. levied and collected under legislations other than Customs Act, 1962, Customs Tariff Act, 1975 or Central Excise Act, 1944 in Brand Rate of duty drawback

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Updates on  Recent  Trade Remedy Measures by DGTR(from 1st Oct 2019 onwards)

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DGFT Mis-declaration of imported goods under 'Others' category of ITC (HS), 2017, Schedule-I (Import Policy)

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JNCH, Introduction of online module for facilitation of MSMEs

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DGFT, Amendment in Conditions for refund of Deemed Export Drawback

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CBIC, Generation and quoting of Document Identification Number (DIN) on any communication issued by the officers of the CBIC to tax payers and other concerned persons on or after 8th Nov 2019

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EXPORT STRATEGY - PERU

Ancient Peru was the seat of several prominent Andean civilizations, most notably that of the Incas whose empire was captured by Spanish conquistadors in 1533. Peru declared its independence in 1821, and remaining Spanish forces were defeated in 1824. After a dozen years of military rule, Peru returned to democratic leadership in 1980, but experienced economic problems and the growth of a violent insurgency. President Alberto FUJIMORI's election in 1990 ushered in a decade that saw a dramatic turnaround in the economy and significant progress in curtailing guerrilla activity. Nevertheless, the president's increasing reliance on authoritarian measures and an economic slump in the late 1990s generated mounting dissatisfaction with his regime, which led to his resignation in 2000. A caretaker government oversaw a new election in the spring of 2001, which installed Alejandro TOLEDO Manrique as the new head of government - Peru's first democratically elected president of indigenous ethnicity. The presidential election of 2006 saw the return of Alan GARCIA Perez who, after a disappointing presidential term from 1985 to 1990, oversaw a robust economic rebound. Former army officer Ollanta HUMALA Tasso was elected president in June 2011, and carried on the sound, market-oriented economic policies of the three preceding administrations. Poverty and unemployment levels have fallen dramatically in the last decade, and today Peru boasts one of the best performing economies in Latin America. Pedro Pablo KUCZYNSKI Godard won a very narrow presidential runoff election in June 2016. Facing impeachment after evidence surfaced of his involvement in a vote-buying scandal, President KUCZYNSKI offered his resignation on 21 March 2018. Two days later, First Vice President Martin Alberto VIZCARRA Cornejo was sworn in as president.

(Source: https://www.cia.gov/library/publications/the-world-factbook/geos/pe.htmll)

ECONOMY OF PERU

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.

Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.
(Source: https://www.cia.gov/library/publications/the-world-factbook/geos/pe.html)

GDP (purchasing power parity):$430.3 billion (2017 est.),$420 billion (2016 est.)
$403.7 billion (2015 est.), note: data are in 2017 dollars
Industries: -mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture.

Exports: -$44.92 billion (2017 est.), $37.02 billion (2016 est.)

Exports Commodities: - copper, gold, lead, zinc, tin, iron ore, molybdenum, silver; crude petroleum and petroleum products, natural gas; coffee, asparagus and other vegetables, fruit, apparel and textiles, fishmeal, fish, chemicals, fabricated metal products and machinery, alloys.

Imports: -$38.65 billion (2017 est.), $35.13 billion (2016 est.)

Import Commodities: - petroleum and petroleum products, chemicals, plastics, machinery, vehicles, TV sets, power shovels, front-end loaders, telephones and telecommunication equipment, iron and steel, wheat, corn, soybean products, paper, cotton, vaccines and medicines

(Source: https://www.cia.gov/library/publications/the-world-factbook/geos/pe.html)

CHEMICAL INDUSTRY IN PERU:

The chemical industry plays an important role in the Peruvian economy. It accounts for
approximately 2 percent of the manufacturing industry’s GDP. According to experts, the
chemical sector is one of the important suppliers for the mining, construction, agroindustrial, fishing, metal-mechanic, and other manufacturing sectors.

The chemical industry in Peru is still considered insufficient to cover the local market
demand. Local production is limited to sulfuric acid, hydrochloric acid, dicalcium phosphate,
and caustic soda. Exports are mostly to neighboring countries Brazil, Chile, Ecuador, and
Venezuela.

The chemical sector will continue to grow based on imports of industrial chemicals for the
Peruvian manufacturing sector. While the mining and construction sectors are two of the main
users of chemical products, other manufacturing sectors also depend on imports of chemicals.
The most important of those sectors are cosmetics, toiletries, detergents, food,pharmaceuticals, fertilizers, water treatment, and cleaning products. Peru’s economicperformance over the past ten years increased the demand for industrial chemicals. Thisdemand will continue to grow with the investment projects in the mining, construction, andinfrastructure sectors.

Peru has adequate reserves of oil and natural gas resources,which are the base for developing a strong
chemical industry. The chemical industry attracts the second largest inflows of FDI in manufacturing. Thedevelopment of industries based on hydrocarbon resources is important both for export-oriented anddomestic market-oriented production. In addition to producing intermediate chemicals,the focus should beon downstream industries such as fertilizers,agricultural chemicals and pharmaceuticals. An added reasonfor Peru to develop the pharmaceutical industry lies in its medicinal plant resources. Developing this sectorrequires an innovation system that is strong in chemical science and engineering.

(Source:https://unctad.org/en/Docs/iteiipmisc19_en.pdf)

MARKET OVERVIEW
Peru continues to lead Latin America as one of the fastest growing economies in the region, with an average annual growth rate of 5 percent per year between 2005 and 2017.  The government recently cut its 2019 growth projections to under 3 percent based on slowing natural resource demand, lower commodity prices and reduced public investment, but projects an uptick to 4 percent in 2020. Peru’s export-oriented growth model, coupled with its mining and agricultural sectors, continues to produce solid growth despite Peru’s ongoing challenges in reducing corruption, increasing productivity, and improving infrastructure. The central government has initiated plans for Public-Private Partnership infrastructure projects and announced an updated catalog of 51 projects valued at $ 9.2 billion, to be realized between 2019 and 2022 (ProInversion). As the economy has grown, poverty in Peru has steadily decreased, falling by more than half. According to the Peruvian Informatics and Statistics Agency (INEI) poverty levels fell from 56% in 2005, 21.7% in 2017 and 20.5% in 2018. Peru’s steady economic growth began with the pro-market policies enacted by former President Alberto Fujimori in the 1990s. All subsequent governments have continued those policies, including current President Martín Vizcarra. Peru’s currency, the Sol (PEN), has been among the least volatile of all Latin American currencies in the past few years. Since the mid-1990’s, the PEN’s exchange rate with the USD has fluctuated between 1.25 and 3.55. The PEN averaged 3.35/USD on September, 2019. In its Doing Business 2019 publication, the World Bank ranked Peru 68th among 190 countries surveyed in terms of ease of doing business..
(Source Modified: https://www.export.gov/article?id=Peru-Market-Overview)
 
MARKET CHALLENGES
One of the main challenges expressed from the private sector is Peru’s cumbersome and inefficient government procurement processes. One persistent challenge is the use of a government-to-government procurement mechanism that restricts the ability ofoverseas  companies to participate in certain areas. Other challenges include the reluctance of some government officials to make final contracting decisions for fear of legal liabilities and oversight investigations and the tendency to base awards on lowest cost rather than value for money. Further detail can be found in the “Selling to the Government” Section. 

Business owners often find it difficult to resolve disputes with the government, and therefore it is recommended to include an arbitration clause in commercial agreements. In 2004, the Peruvian government established commercial courts to rule on business disputes. With specialized judges, these courts reduced the amount of time to resolve a case from an average of two years to just two months. However, with the exception of the commercial courts, the judicial system is often extremely slow to hear cases and to issue decisions. A large backlog of cases further complicates businesses’ operations. Court rulings and the degree of enforcement are often inconsistent and unpredictable. Allegations of political corruption and outside interference in the judicial system are common, a situation analysts believe results in the judiciary system receiving low approval rates in public opinion polls. Also, frequent use of the appellate processes as a delay tactic leads to the belief among foreign investors that contracts can be difficult to enforce in Peru.  Firms operating in Peru also note difficulties in securing legal solutions to commercial disputes or enforcing arbitration awards.

While the legal framework for protection of intellectual property (IP) in Peru has improved over the past decade, enforcement mechanisms remain weak. Despite the Peru Trade Promotion Agreement (PTPA) implementation and recent changes in laws, which created stricter penalties for some types of IP theft, certain PTPA obligations remain unimplemented and the judicial branch has yet to vigorously pursue investigations, convictions, and stiff penalties for IP violations.

Both domestic and foreign firms continue to identify cumbersome bureaucratic procedures as impediments to doing business in Peru. For example, shipments are regularly held up for various reasons, including typographical errors on shipping documents.
(Source Modified :https://www.export.gov/article?id=Peru-Market-Challenges)

MARKET OPPORTUNITY

According to the Australian Trade and Investment Commission, Peru is the world’s second biggest producer of silver, third biggest producer of copper and zinc, fourth biggest of tin and lead and finally the sixth biggest in gold has a well-established mining, equipment, technology ans services (METS) sector.

Mining is the driving sector of Peru’s economy and it is open to foreign investment (there is currently over US10 billion of FDI in the mining sector). Private parties may own surface land, while the subsurface land and mineral resources are reserved for the government. Private parties may purchase irrevocable mining concessions, which can be transferred to other private parties.

Although mining projects in Peru have been stagnated over the last few years due to social conflicts, Kuczynski’s administration has pledged to straighten out the delays and loosen environmental regulations in order to encourage foreign investment.

In recent years, Peru has been experiencing a great increase in commodity exports.

According to Trading Economics the country’s major exports are copper which represents 19 percent of total shipments, gold with 17 percent, and gasoline represents 5 percent of total. Peru is great alliance for exports with United States (16 percent of total exports), China (14 percent), Chile (5 percent) and Canada with (4.8 percent).

To consolidate Peruvian foreign trade in goods and services, Peru has negotiated several trade agreements with large and medium-sized markets in recent years. Peru’s market openness in combination with these trade agreements have permitted an increase in the number of exported products and exporting companies. For example, nearly 95 percent of Peru’s exports are covered by Free Agreements (FTA’s), or also the US-Peru Trade Promotion Agreement (TPA) which eliminates barriers and tariffs to US services, provide a secure and predicable legal frameworks for investors, and reinforce protection for intellectual property, workers and the environment.

(Source Modified: https://www.bizlatinhub.com/business-opportunities-peru-2017/)

MARKET ENTRY STRATEGY

Indian companies often find it convenient to appoint a local representative to investigate market opportunities and establish sales networks. Retention of local legal counsel is often required to successfully navigate Peru’s business practices and bureaucracy. Overseas exporters, especially those targeting government agencies, are encouraged to contact their local Embassy office prior to travel for a briefing on how the organization assists their businesses.

(Source Modified: https://www.export.gov/article?id=Peru-Market-Entry-Strategy)

TRADE BARRIERS

In March 1991, Peru introduced an import surcharge on several agricultural commodities (rice, corn, sugar, and dairy products are still subject to potential surcharges) in order to offset exporting countries’ subsidies. The commodity surcharges were calculated on a weekly basis, according to prevailing international prices, before the government began incrementally reducing the prices in April 1994. In July 2001, this system was replaced by a "price band system," similar to that of the Andean Community. The surcharge on agricultural imports to Peru under the price band system is currently in effect for non-U.S. exporters, in response to decreasing international prices. This situation benefits U.S.-origin agricultural exports, proving advantageous for American exporters in the Peruvian market. In recent years, the Peruvian tax and customs agency, Superintendencia Nacional de Administration Tributaria (SUNAT), implemented a new system for collecting taxes (VAT and income) in order to assure tax collection throughout the distribution channel and to increase revenues. Although this system may not cause much trouble to some sectors, others are being hurt because their margins are smaller than the advanced payments.

(Source Modified: https://www.export.gov/article?id=Peru-Trade-Barriers)

PERUFTA INVOLVEMENT

Good international relations are of vital importance to the sustainable development of a nation. The opening up of new international markets has allowed Peru to achieve a more dynamic economy, as reflected in the signing of Free Trade Agreements (FTAs) in turn resulting in market growth in exports.

* Additionally, there are also agreements pending to entry into force with the Pacific Alliance (Colombia, Chile, Mexico) and ongoing negotiations with the Trans-Pacific Partnership (Brunei Darussalam, Chile, New Zealand, Singapore, Australia, United States, Malaysia, Vietnam, Canada, Mexico and Japan) - "Image by EY".

To date, Peru and its exports have benefited from a variety of regional trade agreements, multilateral agreements, and bilateral trade agreements. The following is a list of the agreements signed.

List of Trade Agreements in Force

Multilateral Agreements:

• World Trade Organization (WTO)

Regional Agreements:

• Andean Community of Nations (CAN) - Bolivia, Colombia, Ecuador, and Peru

Bilateral Agreements:

• Canada
• Chile
• China
• Costa Rica
• Cuba
• European Free Trade Association (EFTA) – Switzerland, Iceland, Liechtenstein, and Norway
• European Union
• Japan
• Mexico
• Panama
• Singapore
• South Korea
• Southern Common Market (MERCOSUR) - Argentina, Brazil, Paraguay, and Uruguay
• Thailand
• United States
• Venezuela

Pending Entry into Force:

• Guatemala
• Pacific Alliance (Colombia, Chile, Mexico, Peru)

(Source:http://limaeasy.com/business-guide/free-trade-agreements-ftas-with-peru#signed-agreements)

India, Peru to hold next round of FTA talks in Dec
In an FTA, two trading partners significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.

New Delhi- India and South American country Peru will hold their next round of negotiations for a proposed free-trade agreement (FTA) at Lima in December, an official said. "Chief negotiators from both the countries will hold the sixth round of negotiations for the agreement in Lima in December," the official said.

In an FTA, two trading partners significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments.

In the fifth round of talks, senior officials of both the sides deliberated upon issues such as national treatment and market access for goods, investments, dispute settlement, customs procedures, and trade facilitation.

The main chapters of the agreement include trade in services, movement of professionals, investments, dispute settlement, technical barriers to trade, trade remedies, rules of origin of goods, customs procedures and trade facilitation.

With growing uncertainties in its traditional markets, including the US and Europe, India is looking to enhance engagements with other regions such as Africa, South America and Central Asia.

The Federation of Indian Export Organisations (FIEO) said Peru holds enormous opportunities for domestic exports.

Engineering exporter and Ludhiana Handtool Association President S C Ralhan said, "It will be a good opportunity for domestic exporters to explore that market".

Peru ranked third among export destinations for India in the Latin America and Caribbean (LAC) region.

The bilateral trade between the nations increased to USD 3.13 billion in 2017-18 from USD 1.77 billion in the previous fiscal.

Among the top-10 commodities that India exports to Peru are motor vehicles, cars, auto components, tyres, dyes, products of iron and steel, cotton yarn and fabrics. While imports include bulk minerals and ores, gold, fertilisers, aluminium, coffee, crude oil and zinc.
(Source: https://auto.economictimes.indiatimes.com/news/industry/india-peru-to-hold-next-round-of-fta-talks-in-dec/71759986 25th Oct-2019)

(Source DGCI&S)

SOURCE:DGCI&S

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