Preventive trade policies restrict export of key agri commodities: study
The Dollar Business Bureau The trade policy of India on agriculture has a pro-customer prejudice which indirectly taxes farmers by putting export curbs on different crops, according to a study. The domestic prices of major agricultural items were below that of export prices in most of the years during the period 2004-2014, a joint study by The World Bank and Indian Council for Research on International Economic Relations (ICRIER) on Tuesday revealed. Policy makers have used preventive trade policies to maintain the domestic prices low in most of the years, the study found after an analysis of domestic prices deviation from global prices. The study on ‘Price Distortions in Indian Agriculture’, analysed global and domestic prices of 15 agri commodities for a 10-year period between ...
Trump holds talks with Merkel, says he is not an isolationist
PTI President Donald Trump today dismissed the notion that he was an "isolationist" in his policies, as he held talks with German Chancellor Angela Merkel and asserted that Germany and the US must work together towards fair and reciprocal trade policies. "My administration is in the process of rebuilding the American industrial base. A stronger America is in the interest, believe me, of the world as a whole," Trump told reporters at a joint news conference with the visiting German Chancellor Merkel. Germany and the United States, he said, must work together towards fair and reciprocal trade policies that benefit people of both the countries. "Millions of hard-working US citizens have been left behind by international commerce, and together, we can ...
US policy agenda indicates possible defiance of WTO
The Dollar Business Bureau Holding American sovereignty above WTO norms, the Trump administration has indicated in its trade policy document that it will not tolerate unfair trade practices, even if that meant defying WTO guidelines for foreign trade. The newly launched 'America first' campaign is fast dismantling the multilateral trade networks built over decades of diplomatic maneuvering. Despite the potential risk of such hasty steps backfiring at its own economy, USA is adamant on dealing with the world on its own terms. In its document outlining the annual agenda for trade policy, US Trade Representative's (USTR's) Office has affirmed its opposition to trade practices that override market forces. Hinting at arch-rival China, the policy states that use of shenanigans like ...
Trade policies focus on growth of exports is it biased?
By Archana Srivastava Since the beginning of the trade literature, the focus has been on the balanced trade growth rather than only on the growth of exports. Economists have proved that a country’s export growth represents other country’s import growth. So, it is always desirable to firmly focus on exports and imports rather than only on exports. It is apt to refer the Indian context, where growth of exports is based on imports. That is why, during economic slowdown of 2009, currency devaluation occurred but that did not improve the exports’ growth scenario. Although, the exchange rate theories suggest that devaluation leads to cheaper exports but it has not been experienced yet, because India’s exports are firmly related to imports. Therefore, the ...
Import licensing regime is open, transparent: India to WTO
Source: PTI Nirmala Sitharaman, Minister of State for Commerce & Industry (Independent Charge), announcing the breakthrough in WTO TFA talks in New Delhi on November 13, 2014 (Pic. source - Ministry of Commerce) India has clarified to the WTO members that its import licensing regime is open and transparent and affects only a few restricted items. A WTO report, prepared as part of the trade policy review (TPR) of India held in June, has mentioned that India has a complex import regime. In response to these observations, it was informed in the TPR that the duties are imposed to equalise internal taxes such as central and state value added taxes and other taxes leviable under domestic production, consumption of sale of ...
C-4 countries raise concerns over falling cotton prices
Bidhu Bhushan Palo | The Dollar Business The Cotton-4 (C-4), the main four cotton producing countries in Africa, have raised concerns over subsidies and trade policies after the International Cotton Advisory Committee (ICAC) said in its 2014-15 outlook that world cotton trade could shrink significantly this year and probably in years to come. Global cotton exports have seen a decline this year mainly due to policy changes in China, the world’s largest cotton importer. After aggressive purchases in recent years, China has said that it will restrict cotton imports until domestic cotton reserves see a significant decline. China also says that restrictions on textile imports by developed countries have led to lower production in China. According to the ICAC, China ...
India's veg oil imports forecast to surge 60% to $15 billion this year: ASSOCHAM
The Dollar Business Bureau | @TheDollarBiz The juggernaut of India’s veg oil imports, which started rolling in the mid-nineties following import relaxations and economic reforms, is all set to grow to mammoth proportions this year. A new report by the Associated Chambers of Commerce & Industry of India (ASSOCHAM) says that India’s spending on veg oil imports is expected to reach a record high of $15 billion in FY2014-15. This is over 60% more than what India spent in FY2013-14 (around $9.3 billion) and about 3% of India’s total imports last year. According to the report, India’s imports of veg or edible oils in the first five months of this fiscal year are already up over 53% y-o-y ...
