NEW DELHI: The ongoing trade war between China and the United States might improve India’s trade balance with its Himalayan neighbour, as Chinese Cabinet on Tuesday announced a lift of import tariffs on soybean and a few other goods from India and four other Asian nations from July 1. The other four nations are South Korea, Bangladesh, Laos and Sri Lanka. The import tariff on soybean was three per cent earlier. The Chinese cabinet said that it will lift duty on related products such as soymeal, soybean cake, rapeseed and fish meal for the Asian countries.
As per reports, chemicals, agricultural products, medical supplies, clothing and steel & aluminum products from these countries will enjoy certain tariff reductions too. Even though the Chinese government had planned the tariff cuts since March, the move comes barely two weeks after that country said it would impose additional 25 per cent tariff on 659 US goods worth $50 billion, including soybean, in retaliation to US President Donald Trump’s effort to cut down $375 billion deficit in bilateral trade by imposing additional tariffs on Chinese products coming to the US.
For India, which has been pushing for lower taxes for its exports, the cuts might improve the $51 billion trade deficit in its $84 billion-trade with China as soybean is that country’s biggest agricultural import from the US by value. During the India-China strategic dialogue held in April, NITI Aayog Vice-Chairman Rajiv Kumar had pitched for export of soybean and sugar to China from India. India has been pressuring China to open up more for Indian products.
Commerce Minister Suresh Prabhu had, on numerous occasions, said that India is working to bridge the trade deficit gap with China and has taken several steps in that direction. “With China, we had a huge trade deficit. I invited the Chinese Commerce Minister (Zhong Shan) to India, signed many agreements and decided not only to reduce trade deficit, but (bring in) balance in trade,” Prabhu had said last week.
Source: newindianexpress.com