GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND INDUSTRY

LOK SABHA

STARRED QUESTION NO: 99

ANSWERED ON:12.08.2013

TRADE WITH CHINA

K.MURUGESHAN ANANDAN

(a)whether an investment promotion mission from China has visited India recently and if so, the details along with the outcome thereof;

(b)whether India and China have signed a series of Memorandum of Understandings (MoUs) to address the existing trade deficit and if so, the details thereof along with the value of the import/export carried out between the two countries and the trade deficit during each of the last three years and the current year;

(c)the details of the commodities having highest value in the trade between the two countries along with the details of the products which are likely to be included for trade and the extent to which both the countries are likely to be benefited after implementation of the said MoUs;

(d)whether there are cases of dumping of cheap and sub-standard goods from China in large quantities adversely affecting the domestic industries and India has initiated 154 anti-dumping cases against China at the World Trade Organisation; and

(e)if so, the details thereof along with the action taken by the Government to discourage the import of such sub-standard goods and also to reduce this trade deficit?

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:- 

ANSWER MINISTER OF COMMERCE AND INDUSTRY

(SHRI ANAND SHARMA)

a)to e): A Statement is laid on the Table of the House. STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 99 FOR ANSWER ON 12TH AUGUST, 2013 REGARDING “TRADE WITH CHINA”

(a):No, Madam. Government of India is not aware of any visit of an investment promotion specific mission from China recently.

(b):India and China have signed MoUs /Agreements to promote Indian exports to China during the visit of Premier Mr. Li Keqiang to India in May 2013 as below;

(i)MoU for the Export of Buffalo Meat from India to China entered into by Agricultural and Processed Food Products Export Development Authority (APEDA) with the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ)

(ii)MoU on Cooperation Related to Import and Export Trade of Fishery Products entered into between the Marine Products Export Development Authority (MPEDA) and AQSIQ

(iii)Agreement on Trade and Safety of Feed and Feed Ingredients entered into between the Export Inspection Council of India (EIC) and AQSIQ (iv)MoU between the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE)and Pharmaceuticals Export Promotion Council of India (Pharmexcil) for co-operation on Pharma. Details of import-export and trade deficit with China during last three years are given below:-

Table-1; Trade & Trade Deficit Statistics between India and China 

Value in USD Million Year Import Export Total Trade Trade Deficit

2010-11 43,479.76 15,482.70 58,962.46 27,997.06

2011-12 57,517.88 18,076.55 75,594.44 39,441.33

2012-13 54,324.04 13,503.00 67,827.04 40,821.04

2013-14 12,080.91 2,435.91 14,516.82 9,645.00 (April- June )(P)

(P)Provisional (Source; DGCI&S)

(c):Major items of Indian exports to China include cotton raw & yarn, non-ferrous metals, iron ore, other ores and minerals, plastic& linoleum products, spices, Dyes/intermediates, machinery & instruments and petroleum (crude& products). Major imports from China include electronic goods, machinery, organic chemicals, project goods, fertilizers, iron and steel, transport equipments, electric machinery (except electronics) and manufactures of metals. With the implementation of the above MoUs, export of buffalo meat, and feed and feed ingredients to China may be resumed. With the operationalization of the MoU on cooperation on Pharma between CCCMHPIE and the Pharmexcil, Indian generic drugs are expected to get market access in China.

(d) & (e): The Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated antidumping investigations into 290 cases as on date involving various countries since 1992. Out of these, 159 cases involve imports from China. The Chinese products in respect of which antidumping duty has been imposed, fall in the product group of Chemicals & Petrochemicals, Pharmaceuticals, Products of Steel & other metals, Fibres & Yarns and Consumer Goods. Due to concerns regarding melamine contamination in milk and milk products from China, on the recommendation from Food Safety and Standard Authority of India, the Government has prohibited import of milk and milk products including chocolate and chocolate products and candies/ confectionery/food preparations with milk or milk solids as ingredient, from China with effect from 24.9.2008 till 23.6.2014. Further, import of toys is subject to meeting of the specified technical and safety standards since 27.1.2010. These standards apply to China also. Import of mobile handsets without International Mobile Equipment Identity (IMEI) or with all zeroes IMEI and import of CDMA mobile phones without Electronic Serial Number (ESN)/Mobile Equipment Identifier (MEID) or all zeroes ESN/MEID, has been prohibited since 16.6.2009. These standards apply to import of such goods from China as well.