Trade Policy Updates (From 1st April to 30th April 2019)
1) The EU may withdraw preferential trade access to Cambodia over Cambodia’s human rights record.
This withdrawal would be nothing short of devastating for Cambodia’s garment industry, given the inherently low margins of the sector and the importance of demand from the EU.
2) China will cut import duties on a wide range of goods, according to a statement released by the Ministry of Finance on Monday, a move that aims to pursue balanced international trade relationships and boost domestic consumption.
According to the announcement, imported goods in three categories will see their duties decline. Among three categories, import duties on goods listed in type 2 are cut to 20% from 25% previously. The goods in this group include sports facilities (excluding golf equipment), fishing equipment, fabrics and textile products.
3) The Trump administration wants to slap tariffs on US$ 11 billion worth of goods from the European Union including textiles and clothing.
4) India to wait for US ‘proclamation’ on GSP withdrawal before imposing retaliatory tariffs
India is likely to wait and see if the US government comes up with the ‘Presidential proclamation’ or executive order for withdrawal of the generalised system of preference (GSP) scheme that would put an end to zero duty benefits for about 3,500 goods from the country before it imposes retaliatory duties on 29 goods imported from the US.
5) Malaysia: Ongoing review of FTA to increase trade volume
Bilateral trade between Turkey and Malaysia can be increased through expanding the scope of the Free Trade Agreement (FTA), including investment, services and e-commerce, which is currently under the review of the two governments.
6) Bangladesh keen to sign FTA with South American trade bloc to promote export
Bangladesh has already submitted “Letter of Intent” to that effect to secure greater access for Bangladeshi products to a huge market of 300 million consumers across Argentina, Brazil, Paraguay and Uruguay.
7) India-Mexico bilateral trade breaks record; touches $10 billion
For the first time ever, India-Mexico bilateral trade has crossed $10 billion in 2018 making Mexico the most important trading partner of India in Latin American region surpassing Brazil. In the last one decade, the total trade has increased 240% out of which 58% came in the last two years since 2016.
8) According to a top American business advocacy group, an India-US FTA would be able to address the Indian concerns over import of Chinese goods.
A free trade agreement between India and the US is a key to resolving their trade disputes as it will cover biggest irritants in ties including tariffs and mobility of Indian professionals.