The trade war between the United States and China is leaving it's effect on potential exports of other countries. China imposed retaliatory import duties on more than 800 items from the US last week and there might be more on the way. New Delhi is looking to take advantage of the situation by pushing their own exports of the targeted products to China.
“The Commerce Ministry is going through the list of items on which China has imposed duties on the US and is trying to identify products where India could try to increase its exports. It will soon start stakeholder consultations with exporters of farm products and the industry to put in place a strategy,” a government official told BusinessLine.
Only last week China imposed 25% duties on imports from the United States, worth about $34 billion a year, in retaliation to tariffs imposed by Washington on Chinese imports worth an equal amount. The Trump administration has now threatened to impose another tranche of tariffs worth $16 billion in a few weeks, gradually increasing that to $200 billion.
“By making it easier for India to replace imports from the US in the Chinese market, Beijing would also be making an honest effort to fulfil its promise to India, made at the highest political level, of helping to bridge the gaping $63 billion trade deficit that exists between the two,” the official said.
Some items on which China has imposed additional duties of 25% include soyabeans, pork, fish, seafood including prawns and shrimp, dairy products, vegetables such as potatoes, tomatoes, onions, shallots, garlic and peas, lentils, nuts including cashews and coconut, fruits including apples, grapes and orange juice, and alcohol.
“Agriculture is a major area where Beijing has imposed retaliatory tariffs on US imports. The Commerce Ministry’s agriculture division will soon hold a meeting with exporters to find out where they see opportunity,” the official said.
If exporters can convince the Commerce Ministry of the potential for the export of certain items and find means to make it happen, the Ministry could also rope in the Indian Embassy in China to work with the Chinese government on various barriers, the official said.
