One fallout of the COVID-19 pandemic is that countries are increasingly likely to adopt more and more protectionist measures.
The Export Promotion Council for Handicrafts (EPCH) on Sunday said it has cancelled the 49th edition of IHGF – Delhi Fair Spring-2020 in view of present status of COVID-19 in India and abroad. The fair, which was earlier to be held from April 15 – 19, was planned to be postponed to June or July.
A dispute settlement panel of World Trade Organization (WTO) in its report issued to members on 31 October 2019 has ruled that India's export-related schemes (including SEZ scheme) are in the nature of prohibited subsidies under the Agreement on Subsidies and Countervailing Measures and are inconsistent with WTO norms.
It also criticised another US decision to unilaterally remove India and Turkey from a list of developing countries that are exempt from safeguard duty on crystalline silicon photovoltaic cells and large residential washers, last year. India said such actions “fuel our apprehensions that the real purpose…is to ultimately terminate Special and Differential Treatment (S&DT) at the WTO."
Special and differential treatment for developing countries like India will figure prominently in the World Trade Organization’s (WTO) 12th Ministerial Conference meet in June in Kazakhstan, an official said.
The global spread of coronavirus holds lesson for global value chains to rethink their future strategies.
Estimates published by United Nations Conference on Trade and Development (UNCTAD) Wednesday said that the slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a 50 billion dollar decrease in exports across global value chains.
Exports have been hovering around $300 billion since 2011-12. In the April-December period, exports fell 1.96% year-on-year to $239.29 billion while imports fell 8.9% to $357.39 billion, leaving a trade deficit of $118.10 billion. In FY19, total trade deficit was a record $176.42 billion.
As Indian government struggles to support the domestic pulses farmers who are getting non-remunerative prices due to the second consecutive year of bumper production, trade body Indian Pulses and Grains Association (IPGA) has claimed that large scale smuggling of pulses from neighbouring countries is hurting the interests of domestic farmers and traders.
President Donald Trump is scheduled to visit India on February 24-25. However, the US has yet to announce the dates for the visit of United States Trade Representative (USTR) Robert Lighthizer, who was expected to travel to India to finalise the trade deal.
India was one of the countries that were eliminated from the privileged list early this week.
Prices are expected to remain volatile in the short-term before a clear picture emerges, industry bodies and traders said. As per industry estimates, India annually imports 50% of its rajma requirement from China. Meanwhile, 25% of its annual export of cotton and cotton yarn is to China.
Industry fears move to question claims dating back 5 years could lead to harassment.
If India wants to be the next manufacturing hub, it has to close a quality gap faced among its peers.
The budget proposal said that a seller of goods has to deduct TCS at the rate of 0.1% before making payments in excess of Rs 50 lakh. In cases where the buyer doesn’t have PAN or Aadhaar — which is the case with exports — the rate will be 1%.
“The large variance in process time means that exports are forced to account for the uncertainty by padding extra waiting time,” the survey stated.
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