India and China have signed a protocol after a meeting held between Commerce Secretary, Anup Wadhawan and Vice Minister, General Administration of Customs of China (GACC), Li Guo for the export of chilli meal from India to China.
This is the 8th agricultural product since 2003 for which India and China have signed a protocol for trade.
Both countries agreed to resolve their market access issues with
speed and efficiency in order to promote a more balanced trade.
The issues for discussion was that of the persisting trade deficit between India and China because Indian exporters face certain non-tariff barriers in the Chinese market which restrict their exports and trade related issues regarding pending Indian request for clearance of agricultural products. The importance of this discussion is that as India is looking for greater market access for its agricultural and manugactured products in Chinese market, hereby increasing exports of thers products to China will help India narrow its increasing trade deficit with China, which stood at US $50.12 Billion during April-February 2018-19.
China is India’s second-biggest trading partner but since 2014 the trade deficit has widened in favor of China by nearly 75% which is about $63 billion worth of goods imported from China while India exported only $15.07 billion woth of goods to China.
India identified and shared a list of about 380 products whch includes textiles, horticulture, chemicala and pharmaceutical products. These products are chosen keeping in mind their shimpments large export potential.In order to improve the trade imbalance China must agree to India’s demand of lower barriers for exports of meat, rice, medicines and IT services.
The Protocols signed between India and China on Agricultural Commodities are Mango(2003),Bitter Gourd and Grapes(2006),Basmati Rice(2005),Rapseedmeal meal(2015),Basmati Rice & Non-Basmati Rice and Fish meal/ Fish oil(2018), Tobacco Leaves ( January,2019)and Chilli Meal (May, 2019)