India raises trade deficit issue with China at WTO
India raises trade deficit issue with China at WTOBy Kirtika Suneja, ET Bureau|Jul 15, 2018, 11.18 PM ISTNEW DELHI: India has flagged concerns of its large trade deficit with China, visa restrictions for Indian professionals and the challenges faced in exporting IT services, meat, rice and medicines to Beijing at the World Trade Organization (WTO).
Trade is skewed in favour of China at a trade surplus of $63 billion. Bilateral trade was $89.6 billion in 2017-18.
âThis large and growing deficit is difficult for India to sustain, and serious efforts need to be made to remedy the si tuation,â India said in its submission to WTO, commenting on Chinaâs trade policy, which EThas seen.
Citing complex requirements for participating in contracts of Chinese state-owned enterprises (SOE) and issues related to qualification requirements, licensing and taxation, Delhi has sought transparency in export of agriculture products including bovine meat and providing services such as IT. âIndian professionals are facing visas restrictions like permits being granted only for a year,â it said.
India also sought greater Chinese investment in manufacturing and infrastructure and termed Chinese foreign direct investment âmodest.â Total Chinese investment in India aggregates to $1.74 billion and annual investments are $100 million.
US, EU SLAM CHINAâS CLOSED MARKET
Both the US and European Union urged China to open up its market and allow fair competition for its SOEs in their comments to Chinaâs seventh trade policy review by WTO.
The US sai d China has caused âserious harm" to WTO partners by failing to live up to free-trade principles as it employs preferential treatment for SOEs, discriminatory regulatory requirements and unique national standards.
EU voiced its concerns over Chinaâs âpotentially distorting effects of public intervention in commercial activities,â behind-the-border measures related to the attribution of licences, insufficient enforcement of intellectual property rights and overcapacity in Chinaâs steel sector.
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