Wainwright Marks Management - India to Try and Improve Trade with China
November 26, 2018 Business News(PRLEAP.COM) India is coming up with a strategy to increase exports of approximately 200 products to China in a bid to reduce the trade deficit with its largest trading partner.
India's strategy includes requesting an exemption from tariffs on an array of products that fall under the Asia-Pacific deal. Analysts at Wainwright Marks Management say India is hoping to convince China to do away with duties on certain products when it enters negotiations with China in April of next year.
A recent report by India's government revealed that a number of countries including Australia and South Korea have a significant competitive advantage over India due to their respective free trade deals with China. India loses out due to tariffs on marine products as it is subject to levies while imports from the Association of Southeast Asian Nations (ASEAN) are permitted tariff free.
The Asia Pacific Trading Agreement (APTA), which was created in 1975, aims to establish a free trading system between India, Laos, Bangladesh, Korea, Sri Lanka and China. Apart from requesting exemptions from certain levies, India is also seeking a reduction in the $56 billion trade deficit with China.
Analysts at Wainwright Marks Management say the current trade tensions between the US and China could provide the opportunity for India to narrow the trade gap.
But analysts at Wainwright Marks Management believe India will need more than just tariff exemptions to compete on equal footing with its Southeast Asian peers and that if it wants to increase exports to China, the country should maintain its focus on the other trade pacts under negotiation, including the Regional Comprehensive Economic Partnership.