In a move that is bound to increase trade between the two countries, India has allowed market access for 5 Bhutanese agricultural products. This will also allow Bhutan to gain access to large Indian market.

Now, Bhutan can market its Areca nuts, Mandarin Oranges, Apples, Potatoes and Ginger in India. Bhutan can access Indian market with immediate effect. The decision in this regard got impetus during the visit of Indian trade minister Piyush Goyal to Bhutan in February this year.

India's envoy to Bhutan Ruchira Kamboj called the development, "a key commitment to grow our bilateral trade".

India's Ministry of Agriculture &amp; Farmers Welfare on 14th October had issued the notification that was published in the Gazette of India on 16 October 2020, notifying five agri-products originating from Bhutan in the Plant Quarantine (Regulation of Import into India) Order, 2003.

A release by the Indian mission in Bhutan said, "India and Bhutan share exceptionally close and friendly ties inclusive of matters pertaining to trade and commerce. Agriculture being an important sector in the economy of both countries, this decision to allow market access for these agricultural commodities was arrived at after detailed deliberation".

Meanwhile, Bhutan's Ministry of Agriculture &amp; Forests has allowed import of Tomato, Onion, and Okra from India under the Plant Quarantine Rules and Regulations of Bhutan, 2018.

The decision comes after talks between India's National Plant Protection Organization and Bhutan's Agriculture and Food Regulatory Authority (BAFRA) and the Embassy of India, Thimphu. Earlier only two Bhutanese agri-products – asparagus and cardamom – were listed in the Plant Quarantine Order of India which meant -- Bhutan could formally export only these two commodities to India.

India will also be setting up a Plant Quarantine (PQ) centre at Jaigaon, one of the key route of trade route between the 2 countries. An Indian Plant Protection officer has been deployed and will assume office shortly. Till date, Bhutanese agri-traders had to wait for the PQ officer stationed at Panitanki on the India-Nepal border, to visit Jaigaon for clearance of their agri-exports to India.

India is Bhutan's largest trading partner. In 2018, the total bilateral trade between the two countries stood at Rs. 9227.7 crores. Major exports from India to Bhutan are mineral products, machinery and mechanical appliances, electrical equipment, plastics and articles. The major items of export from Bhutan to India are electricity, ferro-silicon, portland cement, dolomite etc.

In a move that is bound to increase trade between the two countries, India has allowed market access for 5 Bhutanese agricultural products. This will also allow Bhutan to gain access to large Indian market.

In a move that is bound to increase trade between the two countries, India has allowed market access for 5 Bhutanese agricultural products. This will also allow Bhutan to gain access to large Indian market. Now, Bhutan can market its Areca nuts, Mandarin Oranges, Apples, Potatoes and Ginger in India. Bhutan can access Indian market with immediate effect. The decision in this regard got impetus during the visit of Indian trade minister Piyush Goyal to Bhutan in February this year. India's envoy to Bhutan Ruchira Kamboj called the development, "a key commitment to grow our bilateral trade". India's Ministry of Agriculture & Farmers Welfare on 14th October had issued the notification that was published in the Gazette of India on 16 October 2020, notifying five agri-products originating from Bhutan in the Plant Quarantine (Regulation of Import into India) Order, 2003. A release by the Indian mission in Bhutan said, "India and Bhutan share exceptionally close and friendly ties inclusive of matters pertaining to trade and commerce. Agriculture being an important sector in the economy of both countries, this decision to allow market access for these agricultural commodities was arrived at after detailed deliberation". Meanwhile, Bhutan's Ministry of Agriculture & Forests has allowed import of Tomato, Onion, and Okra from India under the Plant Quarantine Rules and Regulations of Bhutan, 2018. The decision comes after talks between India's National Plant Protection Organization and Bhutan's Agriculture and Food Regulatory Authority (BAFRA) and the Embassy of India, Thimphu. Earlier only two Bhutanese agri-products – asparagus and cardamom – were listed in the Plant Quarantine Order of India which meant -- Bhutan could formally export only these two commodities to India. India will also be setting up a Plant Quarantine (PQ) centre at Jaigaon, one of the key route of trade route between the 2 countries. An Indian Plant Protection officer has been deployed and will assume office shortly. Till date, Bhutanese agri-traders had to wait for the PQ officer stationed at Panitanki on the India-Nepal border, to visit Jaigaon for clearance of their agri-exports to India. India is Bhutan's largest trading partner. In 2018, the total bilateral trade between the two countries stood at Rs. 9227.7 crores. Major exports from India to Bhutan are mineral products, machinery and mechanical appliances, electrical equipment, plastics and articles. The major items of export from Bhutan to India are electricity, ferro-silicon, portland cement, dolomite etc.

India allows market access for 5 Bhutanese agri-products

China's Xiaomi Corp and Oppo are importing some smartphone models into India as their local plants struggle to get back to production levels needed to meet demand that built up during lockdown, sources familiar with matter said. 
The move is a costly one as the world`s second-largest smartphone market imposes steep tariffs on imports of devices and components - part of Prime Minister Narendra Modi`s push to boost manufacturing in India. Most foreign brands in India make nearly all of their smartphones locally.

It also underscores the challenges India faces in kick-starting production as new coronavirus cases soar to nearly 300,000 while more than 8,000 people have died.

Manufacturing facilities in India have been allowed since May to resume operations but several smartphone plants are still grappling with labour shortages, three sources told Reuters.

<a href="https://www.wionews.com/technology/zoom-shuts-account-of-us-based-chinese-dissidents-after-tiananmen-anniversary-meeting-304999">Also read:&nbsp;Zoom shuts account of US-based Chinese dissidents after Tiananmen anniversary meeting</a>

At the same time, demand is high because phones - not deemed essential goods by the government - were not allowed to be sold during the nationwide lockdown of nearly two months.

The bulk of the Xiaomi smartphones sold in India are made by contract manufacturer Foxconn in the southern states of Tamil Nadu and Andhra Pradesh, while Oppo assembles its India-made phones at a plant on the outskirts of New Delhi.

It was not immediately clear how many phones the Chinese brands are now importing, the sources added, declining to be identified as they were not authorised to discuss the matter with media.

<a href="https://www.wionews.com/india-news/apple-rolls-out-cheaper-iphone-as-pandemic-curbs-spending-292856">Also read:&nbsp;Apple rolls out cheaper iPhone as pandemic curbs spending</a>

"This is purely to take care of the demand that is there and the fact that they (Xiaomi) are not able to produce to meet demand," one of the sources said, adding the imports were a short-term measure until production and distribution gets back to normal.

Xiaomi did not respond to a request for comment and Foxconn declined to comment.

Oppo`s plant, which also makes phones for the OnePlus and Realme brands owned by common parent BBK Electronics, reopened with reduced staffing on May 7. But it had to close again for more than a week after several workers tested positive for the coronavirus.

In a few instances, staff at Oppo and other smartphone plants have either resigned or not shown up for work for fear of contracting the virus on assembly lines where people work closely, sources said.

"My father said if you live, you`ll find another job," one worker who recently resigned from the Oppo factory told Reuters, asking not to be named.

Oppo India declined to comment.

The production woes have meant delays to sales plans.

OnePlus, which competes with Apple Inc in India`s $400-plus smartphone segment, has had to stagger sales of its latest model on Amazon`s India website.

Realme said in an emailed statement it has been challenging to meet market demand due to supply chain disruptions and "limited production capabilities".

It added it would not risk the health of factory workers by ramping up production quickly and that it expected to be at normal manufacturing capacity by the end of July.

China's Xiaomi Corp and Oppo are importing some smartphone models into India as their local plants struggle to get back to production levels needed to meet demand that built up during lockdown, sources familiar with matter said.

China's Xiaomi Corp and Oppo are importing some smartphone models into India as their local plants struggle to get back to production levels needed to meet demand that built up during lockdown, sources familiar with matter said. The move is a costly one as the world`s second-largest smartphone market imposes steep tariffs on imports of devices and components - part of Prime Minister Narendra Modi`s push to boost manufacturing in India. Most foreign brands in India make nearly all of their smartphones locally. It also underscores the challenges India faces in kick-starting production as new coronavirus cases soar to nearly 300,000 while more than 8,000 people have died. Manufacturing facilities in India have been allowed since May to resume operations but several smartphone plants are still grappling with labour shortages, three sources told Reuters. Also read: Zoom shuts account of US-based Chinese dissidents after Tiananmen anniversary meeting At the same time, demand is high because phones - not deemed essential goods by the government - were not allowed to be sold during the nationwide lockdown of nearly two months. The bulk of the Xiaomi smartphones sold in India are made by contract manufacturer Foxconn in the southern states of Tamil Nadu and Andhra Pradesh, while Oppo assembles its India-made phones at a plant on the outskirts of New Delhi. It was not immediately clear how many phones the Chinese brands are now importing, the sources added, declining to be identified as they were not authorised to discuss the matter with media. Also read: Apple rolls out cheaper iPhone as pandemic curbs spending "This is purely to take care of the demand that is there and the fact that they (Xiaomi) are not able to produce to meet demand," one of the sources said, adding the imports were a short-term measure until production and distribution gets back to normal. Xiaomi did not respond to a request for comment and Foxconn declined to comment. Oppo`s plant, which also makes phones for the OnePlus and Realme brands owned by common parent BBK Electronics, reopened with reduced staffing on May 7. But it had to close again for more than a week after several workers tested positive for the coronavirus. In a few instances, staff at Oppo and other smartphone plants have either resigned or not shown up for work for fear of contracting the virus on assembly lines where people work closely, sources said. "My father said if you live, you`ll find another job," one worker who recently resigned from the Oppo factory told Reuters, asking not to be named. Oppo India declined to comment. The production woes have meant delays to sales plans. OnePlus, which competes with Apple Inc in India`s $400-plus smartphone segment, has had to stagger sales of its latest model on Amazon`s India website. Realme said in an emailed statement it has been challenging to meet market demand due to supply chain disruptions and "limited production capabilities". It added it would not risk the health of factory workers by ramping up production quickly and that it expected to be at normal manufacturing capacity by the end of July.

China's Xiaomi, Oppo turn to expensive smartphone imports for India market as plants struggle: sources

India's trade deficit sharply narrowed in February to $9.85 billion from $15.17 billion in the previous month, the trade ministry said in a statement on Friday, helped by a rise exports.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/pandemic-on-dalal-street-as-sensex-crashes-by-3090-points-trading-halted-for-45-minutes-286006">Pandemic on Dalal street as Sensex crashes by 3,090 points, trading halted for 45 minutes</a>

Trade deficit stood at $9.72 billion in February 2019.

Also see:&nbsp;<a href="https://www.wionews.com/opinions-blogs/how-this-economic-slowdown-is-different-from-the-previous-ones-283955">How this economic slowdown is different from the previous ones</a>

Merchandise exports rose 2.91% to $27.65 billion in February compared with a year earlier, while imports rose 2.48% to $37.50 billion, the data showed.

India's trade deficit sharply narrowed in February to $9.85 billion from $15.17 billion in the previous month, the trade ministry said in a statement on Friday, helped by a rise exports.

India's trade deficit sharply narrowed in February to $9.85 billion from $15.17 billion in the previous month, the trade ministry said in a statement on Friday, helped by a rise exports. Also read: Pandemic on Dalal street as Sensex crashes by 3,090 points, trading halted for 45 minutes Trade deficit stood at $9.72 billion in February 2019. Also see: How this economic slowdown is different from the previous ones Merchandise exports rose 2.91% to $27.65 billion in February compared with a year earlier, while imports rose 2.48% to $37.50 billion, the data showed.

India's February trade deficit at $9.85 billion: Government

The European Union confirmed tariffs on Indonesian biodiesel imports on Monday to counter what it sees as unfair subsidies, the latest blow to producers after the bloc ruled that palm oil should be phased out of renewable transport fuels.

In the conclusion to a case that has lasted seven years, the duties, which normally remain in place for five years, have been set at between 8% and 18%, the same level as the provisional rates proposed by the EU in August.

The EU biodiesel market is worth an estimated 9 billion euros ($10 billion) a year, with imports from Indonesia worth about 400 million euros, the European Commission said.

Indonesian producers sold at unfairly low prices, the Commission, which coordinates trade policy for the EU, said, adding that its investigation found they benefit from grants, tax benefits and access to raw materials below market prices.

This was driving EU producers into losses, it added.

Master Parulian Tumanggor, chairman of Indonesia's biofuel producers association, told Reuters his group would ask the government to file a legal challenge at the World Trade Organization (WTO).

The EU and China are Indonesia's biggest markets for its biodiesel exports and the Indonesian government has threatened to impose its own tariffs on EU dairy products amid fraught relations with the bloc.

The EU said in March that Indonesian palm plantations were contributing to deforestation and said palm oil should no longer be used in renewable fuels.

It has also imposed anti-subsidy duties on Argentine biodiesel producers, although they have tariff-free access for about 1.2 million tonnes as long as they sell no lower than a set minimum price.

The EU began looking into biodiesel from both major producers in 2012 and imposed anti-dumping duties on companies in 2013. However, the firms subsequently won challenges at the European Court of Justice and the WTO.

This prompted the EU to remove duties on most biodiesel imports from the two countries, but the Commission also started an investigation into possible unfair subsidies.

The European Union confirmed tariffs on Indonesian biodiesel imports on Monday to counter what it sees as unfair subsidies, the latest blow to producers after the bloc ruled that palm oil should be phased out of renewable transport fuels.

The European Union confirmed tariffs on Indonesian biodiesel imports on Monday to counter what it sees as unfair subsidies, the latest blow to producers after the bloc ruled that palm oil should be phased out of renewable transport fuels. In the conclusion to a case that has lasted seven years, the duties, which normally remain in place for five years, have been set at between 8% and 18%, the same level as the provisional rates proposed by the EU in August. The EU biodiesel market is worth an estimated 9 billion euros ($10 billion) a year, with imports from Indonesia worth about 400 million euros, the European Commission said. Indonesian producers sold at unfairly low prices, the Commission, which coordinates trade policy for the EU, said, adding that its investigation found they benefit from grants, tax benefits and access to raw materials below market prices. This was driving EU producers into losses, it added. Master Parulian Tumanggor, chairman of Indonesia's biofuel producers association, told Reuters his group would ask the government to file a legal challenge at the World Trade Organization (WTO). The EU and China are Indonesia's biggest markets for its biodiesel exports and the Indonesian government has threatened to impose its own tariffs on EU dairy products amid fraught relations with the bloc. The EU said in March that Indonesian palm plantations were contributing to deforestation and said palm oil should no longer be used in renewable fuels. It has also imposed anti-subsidy duties on Argentine biodiesel producers, although they have tariff-free access for about 1.2 million tonnes as long as they sell no lower than a set minimum price. The EU began looking into biodiesel from both major producers in 2012 and imposed anti-dumping duties on companies in 2013. However, the firms subsequently won challenges at the European Court of Justice and the WTO. This prompted the EU to remove duties on most biodiesel imports from the two countries, but the Commission also started an investigation into possible unfair subsidies.

EU hits Indonesian biodiesel with import duties over subsidies

The National Accountability Bureau (NAB) on Tuesday filed a reference against 10 people, including former prime minister Shahid Khaqan Abbasi and former finance minister Miftah Ismail in connection with the Liquefied Natural Gas (LNG) import contract case. 
 
The anti-graft watchdog submitted the reference in an accountability court in Islamabad. The reference alleged that one firm received benefits of more than Rs 21 billion between March 2015 to September 2019, The Dawn reported. 
 
The reference also stated that the national exchequer will suffer a loss of Rs 47 billion by 2029 due to the contract. 
 
Former Pakistan State Oil (PSO) managing director Sheikh Imranul Haq, former Ogra chairman Saeed Ahmed Khan, Ogra chairperson Uzma Adil Khan, chairman of the Engro group Hussain Dawood, former chairman of Port Qasim Authority (PQA) Agha Jan Akhtar, former member of Ogra Aamir Naseem and former PSO Managing Director Shahid M Islam and Abdul Sammad have been named in the reference. 
 
Abbasi was arrested by the NAB on July 18 in connection with the case, in which he and others are accused of illegally awarding LNG terminal contracts for a period of 15 years to a company of their liking in violation of defined rules, incurring losses to the state exchequer. 
 
While Abbasi and Ismail have been in prison for over four months, Haq secured pre-arrest bail last week from the Islamabad High Court. 
 
In April, the Pakistan government had imposed a travel ban on Abbasi, Ismail and five others in connection with the case. 
 
Abbasi served as the prime minister from August 2017 to May 2018, following the disqualification of Nawaz Sharif from office by the Pakistan Supreme Court over the Panama Papers scandal.

The National Accountability Bureau (NAB) on Tuesday filed a reference against 10 people, including former prime minister Shahid Khaqan Abbasi and former finance minister Miftah Ismail in connection with the Liquefied Natural Gas (LNG) import contract case.

The National Accountability Bureau (NAB) on Tuesday filed a reference against 10 people, including former prime minister Shahid Khaqan Abbasi and former finance minister Miftah Ismail in connection with the Liquefied Natural Gas (LNG) import contract case. The anti-graft watchdog submitted the reference in an accountability court in Islamabad. The reference alleged that one firm received benefits of more than Rs 21 billion between March 2015 to September 2019, The Dawn reported. The reference also stated that the national exchequer will suffer a loss of Rs 47 billion by 2029 due to the contract. Former Pakistan State Oil (PSO) managing director Sheikh Imranul Haq, former Ogra chairman Saeed Ahmed Khan, Ogra chairperson Uzma Adil Khan, chairman of the Engro group Hussain Dawood, former chairman of Port Qasim Authority (PQA) Agha Jan Akhtar, former member of Ogra Aamir Naseem and former PSO Managing Director Shahid M Islam and Abdul Sammad have been named in the reference. Abbasi was arrested by the NAB on July 18 in connection with the case, in which he and others are accused of illegally awarding LNG terminal contracts for a period of 15 years to a company of their liking in violation of defined rules, incurring losses to the state exchequer. While Abbasi and Ismail have been in prison for over four months, Haq secured pre-arrest bail last week from the Islamabad High Court. In April, the Pakistan government had imposed a travel ban on Abbasi, Ismail and five others in connection with the case. Abbasi served as the prime minister from August 2017 to May 2018, following the disqualification of Nawaz Sharif from office by the Pakistan Supreme Court over the Panama Papers scandal.

Pakistan: NAB files reference against ten, including ex-PM Abbasi, in LNG import scam

Japan has agreed to phase out tariffs on <a href="https://www.wionews.com/world/us-wants-to-make-meaningful-progress-in-china-trade-talks-249287">US</a> wine imports as part of a bilateral <a href="https://www.wionews.com/business-economy/american-business-community-wants-trade-deal-between-us-china-249649">trade deal</a> expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday.

Japan will eliminate the tariffs on US wine within five to seven years after the trade agreement goes into effect, the Nikkei reported without giving its sources.

Japan taxes imported wine at a rate of 15 per cent&nbsp;or 125 yen ($1.16) per litre, whichever is cheaper, according to the Nikkei.

The elimination of the tariff could cut the cost of US wine by about 13 per cent&nbsp;for wine distributors, the Nikkei said.

The trade agreement between the United States and Japan, which is expected to be signed on the sidelines of the UN&nbsp;General Assembly meeting, is also expected to gradually lower tariffs on US&nbsp;beef imports to 9&nbsp;per cent in 2033 from 38.5 per cent&nbsp;now, the Nikkei said.

Officials from Japan's trade ministry were not immediately available for comment.

Last month, the United States and Japan agreed in principle on the core elements of a free-trade deal that would cool a trade dispute between the allies. 
The United States is also trying to de-escalate its year-long trade war with China.

Chinese trade deputies are expected to meet their US&nbsp;counterparts in Washington before minister-level meetings in early October in the US&nbsp;capital. 
&nbsp;

Japan has agreed to phase out tariffs on US wine imports as part of a bilateral trade deal expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday.

Japan has agreed to phase out tariffs on US wine imports as part of a bilateral trade deal expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday. Japan will eliminate the tariffs on US wine within five to seven years after the trade agreement goes into effect, the Nikkei reported without giving its sources. Japan taxes imported wine at a rate of 15 per cent or 125 yen ($1.16) per litre, whichever is cheaper, according to the Nikkei. The elimination of the tariff could cut the cost of US wine by about 13 per cent for wine distributors, the Nikkei said. The trade agreement between the United States and Japan, which is expected to be signed on the sidelines of the UN General Assembly meeting, is also expected to gradually lower tariffs on US beef imports to 9 per cent in 2033 from 38.5 per cent now, the Nikkei said. Officials from Japan's trade ministry were not immediately available for comment. Last month, the United States and Japan agreed in principle on the core elements of a free-trade deal that would cool a trade dispute between the allies. The United States is also trying to de-escalate its year-long trade war with China. Chinese trade deputies are expected to meet their US counterparts in Washington before minister-level meetings in early October in the US capital.

Japan to eliminate tariffs on United States wine in trade deal: Report

In early March 2019, President Donald Trump, announced that he would withdraw duty benefits on all imports from India. These benefits had been offered under the Generalised System of Preferences (GSP), a programme that allows duty-free imports of specified goods from beneficiary countries. &nbsp;

The scheme, introduced in 1974, was intended as a way of helping developing nations as well as giving the US manufacturers access to cheap raw material. &nbsp;

The March announcement should not have come as a surprise to India. In November, the US withdrew GSP benefits to some 50 products from India. &nbsp;

Earlier in 2018, the Office of the US Trade Representative (USTR) had begun an eligibility review of India, based on complaints received from US dairy associations and the medical technology association. &nbsp;

The trigger for these trade bodies to focus on India was because India had made it difficult for them to enter the market. &nbsp;

In the case of dairy, India had asked dairy importers to certify their products as being from livestock that had not been fed animal parts. &nbsp;

The reason for this is that dairy products in India are often used in religious rites, and need to be ritually “pure”. &nbsp;

Medical technology companies, meanwhile, have been hit hard by the Indian government providing heavy subsidies on medical equipment in order to make such equipment easily accessible. This “populist” move has meant that American companies cannot charge a premium on their products.

According to the USTR, beneficiary countries under GSP are expected to provide “equitable and reasonable access to its markets” to US companies. &nbsp;

India, however, has imposed several measures that the US considers protectionist, including the two steps mentioned above. &nbsp;

What does this mean for Indian exports? According to the government, very little. &nbsp;

Official sources have downplayed the impact of GSP removal. The numbers they quote seem convincing -- Indian exports to the US are valued at $5.6 billion; Indian trade authorities say that GSP covers some $190 million worth of exports and so the impact of removing India from GSP will be minimal. But any negative impact could hit the country’s balance of trade, and a big trade deficit will hit the GDP. 
 
Exporters will also take a hit. Small and medium enterprises (SMEs) form the bulk of exporters who benefit under GSP, and having to pay duty on their goods could prove too expensive for them. &nbsp;

Many of these exporters are in labour-intensive industries, so if they go out of business, it could hit the labour market as well. Leather and footwear, chemicals, and bulk drugs will be the sectors most affected.

On the whole, other exports will not feel the pinch. However, the fear is that once the US has used GSP as a stick, it will make other exports from India unviable. &nbsp;

In the case of seafood, the US has already imposed stringent import regulations; given that the bulk of Indian seafood exports is to the US, these norms will hit India hard. &nbsp;

There’s also the possibility of the US imposing or increasing anti-dumping duties on a range of other goods.

The impact on exporters will likely be softened over the medium term as these players look at markets outside the US. While China and the US may both be closed to these exporters, there’s still a large market in the rest of the world. &nbsp;

Judging by the state of internal politics, and with elections coming up soon, the GSP issue may soon be buried or resolved to India’s benefit. &nbsp;

That’s because removing India from the GSP will mean that Indian goods will cost more in the US, which means that the cost of raw material for American industry could go up too.

Meanwhile, there are steps India can take to protect its exporters. For one, it can approach the World Trade Organisation. Under the Enabling Clause of the WTO’s General Agreement on Trade and Tariffs (to which both India and the US are signatories), developed countries can offer preferential treatment on a non-reciprocal basis. By removing India from the GSP on the grounds that the country isn’t providing access to its market, the US is violating this GATT clause. &nbsp;

India can take this matter to the WTO and, judging by a past victory against the European Union, win. 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-india-s-removal-from-gsp-new-delhi-can-move-wto-2740316">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.) 
&nbsp;

&nbsp;

In early March 2019, President Donald Trump, announced that he would withdraw duty benefits on all imports from India. These benefits had been offered under the Generalised System of Preferences (GSP), a programme that allows duty-free imports of specified goods from beneficiary countries.

In early March 2019, President Donald Trump, announced that he would withdraw duty benefits on all imports from India. These benefits had been offered under the Generalised System of Preferences (GSP), a programme that allows duty-free imports of specified goods from beneficiary countries. The scheme, introduced in 1974, was intended as a way of helping developing nations as well as giving the US manufacturers access to cheap raw material. The March announcement should not have come as a surprise to India. In November, the US withdrew GSP benefits to some 50 products from India. Earlier in 2018, the Office of the US Trade Representative (USTR) had begun an eligibility review of India, based on complaints received from US dairy associations and the medical technology association. The trigger for these trade bodies to focus on India was because India had made it difficult for them to enter the market. In the case of dairy, India had asked dairy importers to certify their products as being from livestock that had not been fed animal parts. The reason for this is that dairy products in India are often used in religious rites, and need to be ritually “pure”. Medical technology companies, meanwhile, have been hit hard by the Indian government providing heavy subsidies on medical equipment in order to make such equipment easily accessible. This “populist” move has meant that American companies cannot charge a premium on their products. According to the USTR, beneficiary countries under GSP are expected to provide “equitable and reasonable access to its markets” to US companies. India, however, has imposed several measures that the US considers protectionist, including the two steps mentioned above. What does this mean for Indian exports? According to the government, very little. Official sources have downplayed the impact of GSP removal. The numbers they quote seem convincing -- Indian exports to the US are valued at $5.6 billion; Indian trade authorities say that GSP covers some $190 million worth of exports and so the impact of removing India from GSP will be minimal. But any negative impact could hit the country’s balance of trade, and a big trade deficit will hit the GDP. Exporters will also take a hit. Small and medium enterprises (SMEs) form the bulk of exporters who benefit under GSP, and having to pay duty on their goods could prove too expensive for them. Many of these exporters are in labour-intensive industries, so if they go out of business, it could hit the labour market as well. Leather and footwear, chemicals, and bulk drugs will be the sectors most affected. On the whole, other exports will not feel the pinch. However, the fear is that once the US has used GSP as a stick, it will make other exports from India unviable. In the case of seafood, the US has already imposed stringent import regulations; given that the bulk of Indian seafood exports is to the US, these norms will hit India hard. There’s also the possibility of the US imposing or increasing anti-dumping duties on a range of other goods. The impact on exporters will likely be softened over the medium term as these players look at markets outside the US. While China and the US may both be closed to these exporters, there’s still a large market in the rest of the world. Judging by the state of internal politics, and with elections coming up soon, the GSP issue may soon be buried or resolved to India’s benefit. That’s because removing India from the GSP will mean that Indian goods will cost more in the US, which means that the cost of raw material for American industry could go up too. Meanwhile, there are steps India can take to protect its exporters. For one, it can approach the World Trade Organisation. Under the Enabling Clause of the WTO’s General Agreement on Trade and Tariffs (to which both India and the US are signatories), developed countries can offer preferential treatment on a non-reciprocal basis. By removing India from the GSP on the grounds that the country isn’t providing access to its market, the US is violating this GATT clause. India can take this matter to the WTO and, judging by a past victory against the European Union, win. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

India-US trade bumps: New Delhi can move WTO on its removal from GSP

<a href="http://www.wionews.com/world/us-and-china-open-trade-talks-in-beijing-197284">China</a>'s exports unexpectedly returned to growth in January after a shock decline the previous month, while imports fell much less than expected, but analysts said it was likely due to seasonal factors and predicted renewed trade weakness ahead.

Global investors and China's major trading partners are closely watching to see how quickly its economy is cooling, or if a spate of support measures announced last year are beginning to take hold, lifting some of the gloom hanging over the world economy.

January exports rose 9.1 per cent from a year earlier, customs data showed on Thursday. Economists polled by Reuters had expected a 3.2 per cent drop after a 4.4 per cent decline in December.

Imports fell 1.5 per cent from a year earlier, much better than analysts' forecasts for a 10 per cent fall and narrowing from December's 7.6 per cent drop.

That left the country with a trade surplus of $39.16 billion for the month, better than forecasts of $33.5 billion

Analysts warn that data from China in the first two months of the year must be treated with caution due to business distortions caused by the long Lunar New Year holidays, which fell in mid-February in 2018 but started on February 4 this year.

"Clearly, the numbers surprised the market on the upside. But given the deceleration of global PMI and the weak Korean trade data, it might be premature to conclude that the trade prospect has improved just based on the January number alone," said Tommy Xie, China economist at OCBC Bank in Singapore.

"I suspect that the recovery may be partially due to the Chinese New Year effect as this year's CNY is slightly earlier as compared to last year."

Economists had widely tipped that China would see weaker exports early this year. Factories have reported shrinking overseas orders for months and warehouses in America are packed to the rafters with Chinese goods that retailers stockpiled last year in anticipation of more US tariffs.

Trade globally has also been faltering amid rising protectionism and a loss of momentum in some major economies, most notably in Europe.

Pressure on China will escalate quickly if Beijing and Washington cannot reach a deal soon to end their year-long trade war. The US is set to sharply raise tariffs on $200 billion worth of Chinese imports from March 1, though President Donald Trump said this week he could let the deadline "slide for a little while" if a deal appears close.

China's trade surplus with the United States narrowed to $27.3 billion in January, from $29.87 billion in December, customs data showed on Thursday.

Exports to the United States fell 2.4 per cent in January from a year earlier, while imports from the United States plunged 41.2 per cent.

Net exports actually dragged on China's growth by 8.6 per cent last year, even after the unexpected jump in sales to the US, Reuters calculations based on official data showed.

Factory surveys have also show weakening domestic orders, and broader economic weakness is taking a toll on both business and consumer confidence. Retail sales during the Lunar New Year holiday rose 8.5 per cent from a year earlier, still solid but the slowest pace since at least 2011.

China's economic growth slowed to 6.6 per cent in 2018, weighed down by rising borrowing costs and a clampdown on riskier lending that starved smaller, private companies of capital and stifled investment.

 
&nbsp;

China's exports unexpectedly returned to growth in January after a shock decline the previous month, while imports fell much less than expected, but analysts said it was likely due to seasonal factors and predicted renewed trade weakness ahead.

China's exports unexpectedly returned to growth in January after a shock decline the previous month, while imports fell much less than expected, but analysts said it was likely due to seasonal factors and predicted renewed trade weakness ahead. Global investors and China's major trading partners are closely watching to see how quickly its economy is cooling, or if a spate of support measures announced last year are beginning to take hold, lifting some of the gloom hanging over the world economy. January exports rose 9.1 per cent from a year earlier, customs data showed on Thursday. Economists polled by Reuters had expected a 3.2 per cent drop after a 4.4 per cent decline in December. Imports fell 1.5 per cent from a year earlier, much better than analysts' forecasts for a 10 per cent fall and narrowing from December's 7.6 per cent drop. That left the country with a trade surplus of $39.16 billion for the month, better than forecasts of $33.5 billion Analysts warn that data from China in the first two months of the year must be treated with caution due to business distortions caused by the long Lunar New Year holidays, which fell in mid-February in 2018 but started on February 4 this year. "Clearly, the numbers surprised the market on the upside. But given the deceleration of global PMI and the weak Korean trade data, it might be premature to conclude that the trade prospect has improved just based on the January number alone," said Tommy Xie, China economist at OCBC Bank in Singapore. "I suspect that the recovery may be partially due to the Chinese New Year effect as this year's CNY is slightly earlier as compared to last year." Economists had widely tipped that China would see weaker exports early this year. Factories have reported shrinking overseas orders for months and warehouses in America are packed to the rafters with Chinese goods that retailers stockpiled last year in anticipation of more US tariffs. Trade globally has also been faltering amid rising protectionism and a loss of momentum in some major economies, most notably in Europe. Pressure on China will escalate quickly if Beijing and Washington cannot reach a deal soon to end their year-long trade war. The US is set to sharply raise tariffs on $200 billion worth of Chinese imports from March 1, though President Donald Trump said this week he could let the deadline "slide for a little while" if a deal appears close. China's trade surplus with the United States narrowed to $27.3 billion in January, from $29.87 billion in December, customs data showed on Thursday. Exports to the United States fell 2.4 per cent in January from a year earlier, while imports from the United States plunged 41.2 per cent. Net exports actually dragged on China's growth by 8.6 per cent last year, even after the unexpected jump in sales to the US, Reuters calculations based on official data showed. Factory surveys have also show weakening domestic orders, and broader economic weakness is taking a toll on both business and consumer confidence. Retail sales during the Lunar New Year holiday rose 8.5 per cent from a year earlier, still solid but the slowest pace since at least 2011. China's economic growth slowed to 6.6 per cent in 2018, weighed down by rising borrowing costs and a clampdown on riskier lending that starved smaller, private companies of capital and stifled investment.

China's January trade data beats forecasts

Japan has started the process of importing Iranian oil, which was suspended due to <a href="http://www.wionews.com/world/us-to-give-iran-oil-sanctions-waiver-to-eight-countries-including-india-south-korea-japan-report-175107">US sanctions</a>, the governor of Iran's central bank said on Monday.

The resumption of oil imports comes after Tokyo was granted a waiver from US sanctions that went into effect in November. Iran is the fourth-largest oil producer among the members of the Organization of the Petroleum Exporting Countries.

"After China, South Korea, India and Turkey, Japan also started the process of importing Iranian oil," Abdolnaser Hemmati was quoted as saying by the state news agency IRNA.

Iran's oil exports have fallen sharply since US President Donald Trump said in May 2018 the United States would withdraw from a pact curtailing Iran's disputed nuclear programme and reimpose sanctions on Tehran.

However, exemptions have been granted to Iran's biggest oil clients - Japan, China, India, South Korea, Taiwan, Italy, Greece and Turkey - which allow them to import some oil for another 180 days.

Iranian oil accounted for 5.3 per cent of Japan's total crude imports in 2018.

Japan has started the process of importing Iranian oil, which was suspended due to US sanctions, the governor of Iran's central bank said on Monday. The resumption of oil imports comes after Tokyo was granted a waiver from US sanctions that went into effect in November.

Japan has started the process of importing Iranian oil, which was suspended due to US sanctions, the governor of Iran's central bank said on Monday. The resumption of oil imports comes after Tokyo was granted a waiver from US sanctions that went into effect in November. Iran is the fourth-largest oil producer among the members of the Organization of the Petroleum Exporting Countries. "After China, South Korea, India and Turkey, Japan also started the process of importing Iranian oil," Abdolnaser Hemmati was quoted as saying by the state news agency IRNA. Iran's oil exports have fallen sharply since US President Donald Trump said in May 2018 the United States would withdraw from a pact curtailing Iran's disputed nuclear programme and reimpose sanctions on Tehran. However, exemptions have been granted to Iran's biggest oil clients - Japan, China, India, South Korea, Taiwan, Italy, Greece and Turkey - which allow them to import some oil for another 180 days. Iranian oil accounted for 5.3 per cent of Japan's total crude imports in 2018.

Iran says Japan has started process of importing Iranian oil

The country's exports growth remained almost flat at $27.93 billion in December 2018, mainly on account of global trade tensions.

According to trade data released by the commerce ministry, exports grew at the slowest pace in three months at 0.34 per cent in December, while imports entered a negative zone, registering a decline of 2.44 per cent to $41 billion.

Declining imports have narrowed the trade deficit to a ten-month low of $13.08 billion in December 2018 as against $14.2 billion in the same month the previous year.

Last time, imports had plunged into negative territory in September 2016. It was dipped by 2.54 per cent then.

The import of gold too contracted by 24.33 per cent to $2.56 billion in December 2018.

During the month under review, several key export sectors recorded negative growth. It includes engineering goods, gems and jewellery, leather, pharmaceuticals, marine products, iron ore, tea and coffee.

Commenting on the figures, exporters body FIEO said that the marginal growth in exports was due to uncertain global cues and challenges on the domestic front.

"China's exports contracted in December 2018, highlighting fragile global conditions. The weak global economic outlook is showing no signs of respite," Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said.

Engineering Export Promotion Council (EEPC) Chairman Ravi Sehgal too said the unfolding global situation comprises not only problems on account of trade tensions between China and the US, but also other issues like uncertainty over Brexit fall-out in the European markets.

"The situation certainly calls for a major rethink and redrawing of our export strategy," he said.

However, cumulatively during April-December, this fiscal, exports grew by 10.18 per cent to $245.44 billion. Imports rose by 12.61 per cent to USD 386.65 billion.

The trade deficit widened to $141.2 billion during the nine months of the current fiscal from $120.57 billion in April-December 2017-18.

Oil imports in December 2018 rose by 3.16 per cent to $10.67 billion. During April-December this fiscal, imports grew by 42.85 per cent to $108.10 billion.

Non-oil imports during the nine-month period of the fiscal increased by 4.06 per cent to $278.54 billion.

The country's exports growth remained almost flat at $27.93 billion in December 2018, mainly on account of global trade tensions. According to trade data released by the commerce ministry, exports grew at the slowest pace in three months at 0.

The country's exports growth remained almost flat at $27.93 billion in December 2018, mainly on account of global trade tensions. According to trade data released by the commerce ministry, exports grew at the slowest pace in three months at 0.34 per cent in December, while imports entered a negative zone, registering a decline of 2.44 per cent to $41 billion. Declining imports have narrowed the trade deficit to a ten-month low of $13.08 billion in December 2018 as against $14.2 billion in the same month the previous year. Last time, imports had plunged into negative territory in September 2016. It was dipped by 2.54 per cent then. The import of gold too contracted by 24.33 per cent to $2.56 billion in December 2018. During the month under review, several key export sectors recorded negative growth. It includes engineering goods, gems and jewellery, leather, pharmaceuticals, marine products, iron ore, tea and coffee. Commenting on the figures, exporters body FIEO said that the marginal growth in exports was due to uncertain global cues and challenges on the domestic front. "China's exports contracted in December 2018, highlighting fragile global conditions. The weak global economic outlook is showing no signs of respite," Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said. Engineering Export Promotion Council (EEPC) Chairman Ravi Sehgal too said the unfolding global situation comprises not only problems on account of trade tensions between China and the US, but also other issues like uncertainty over Brexit fall-out in the European markets. "The situation certainly calls for a major rethink and redrawing of our export strategy," he said. However, cumulatively during April-December, this fiscal, exports grew by 10.18 per cent to $245.44 billion. Imports rose by 12.61 per cent to USD 386.65 billion. The trade deficit widened to $141.2 billion during the nine months of the current fiscal from $120.57 billion in April-December 2017-18. Oil imports in December 2018 rose by 3.16 per cent to $10.67 billion. During April-December this fiscal, imports grew by 42.85 per cent to $108.10 billion. Non-oil imports during the nine-month period of the fiscal increased by 4.06 per cent to $278.54 billion.

Exports flat in December 2018; trade deficit narrows to 10-month low 

The US on Thursday revoked duty-free concessions on import of at least <a href="http://www.wionews.com/india-news/how-trumps-war-on-birthright-citizenship-impact-indians-174799">50 Indian products</a>, mostly from handloom and agriculture sectors, reflecting the Trump administration's tough stand on trade-related issues with New Delhi.

The federal register issued a notification, listing out 90 products which were so far subject to duty-free provisions under the Generalized System of Preferences (GSP).

<a href="http://www.wionews.com/world/donald-trump-threatens-to-bring-executive-order-to-end-birthright-citizenship-174786">President Donald Trump</a> issued a presidential proclamation on Tuesday, leading to the removal of these products from the privilege beginning November 1.

As of November 1, these products "will no longer qualify for duty-free preferences under the GSP programme but may continue to be imported subject to regular Most Favored Nation duty-rates," an official of US Trade Representative said.

A review of the products indicates that the presidential proclamation is not country-specific, but product specific.

With India being the largest beneficiary of the GSP, it has been hit the most by the latest decision of the Trump administration.

The GSP, the largest and oldest US trade preference programme, is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

A count of these products indicated that at least 50 of them are from India. Notably, India is the largest beneficiary of the GSP. In 2017, India's duty-free export to the US under the GSP was to the tune of more than USD 5.6 billion.

The volume of India's export to the US impacted by the latest move of the Trump administration is not known yet, but the list of products from which duty-free import provision has been removed reflects that a large number of small and medium-size business could be impacted, in particular, handloom and agricultural sector.

In his presidential proclamation, Trump said that certain 'de minimis' waivers will no longer be granted for any product, regardless of the country source, that exceeds the GSP's Competitive Need Limitation (CNL) thresholds. The CNL thresholds are quantitative ceilings on GSP benefits for each product and designated beneficiary country.

Trump said he had determined in 2017 certain beneficiary developing countries exported eligible articles in quantities exceeding the applicable competitive-need limitations.

"I hereby terminate the duty-free treatment for such articles from such beneficiary developing countries," he said.

Products from other countries like Argentina, Brazil, Thailand, Suriname, Pakistan, Turkey, the Philippines, Ecuador and Indonesia have also been removed from the GSP list.

Some of the prominent Indian products removed from the duty-free provisions of the GSP include dried pigeon pea seed; areca nuts, fresh or dried, in shell; turpentine gum; mangoes, prepared or preserved by vinegar or acetic acid; sandstone, merely cut into blocks or slabs of a rectangular (including square) shape; tin chlorides; barium chlorides; salts and esters of tartaric acid, nesoi; and trimethyl phosphite.

Full-grain unsplit or grain split buffalo hide or skin; grain split whole buffalo leather, without hair on; whole buffalo skin leather (not full grain unsplits/grain splits); and full grain unsplit buffalo leather (not whole), have also been removed from the duty-free the GSP list.

Dyed, plain weave certified hand-loomed fabrics of cotton, containing 85 percent or more cotton by weight; plain weave certified hand-loomed fabrics of cotton, containing 85 per cent or more cotton by weight, hand-loomed carpet and other textile floor coverings, not of pile construction, woven, made up of man-made textile materials have also been removed.

Base metal clad with gold mixed link necklaces and neck chains and keyboard musical instruments, like harmoniums and similar keyboard instruments with free metal reeds, are among the other products.

These products can still be exported to the US from India but they will be subject to regular tariffs.

In April, the US announced the eligibility review of India for the GSP. According to the USTR, the total US imports under GSP in 2017 was USD 21.2 billion, of which India was the biggest beneficiary with USD 5.6 billion, followed by Thailand (USD 4.2 billion) and Brazil (USD 2.5 billion).

The programme has now been renewed through December 31, 2020.

FICCI in a submission to the USTR had said that the termination of the GSP would be contrary to the legislative objective and the history of the Trade Reform Act of 1974 of furthering the economic development of developing countries.

It would cause significant distress to the export-oriented sector leading to increased cost for US industries that use products under the GSP, it said.&nbsp;

The US on Thursday revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration's tough stand on trade-related issues with New Delhi.

The US on Thursday revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration's tough stand on trade-related issues with New Delhi. The federal register issued a notification, listing out 90 products which were so far subject to duty-free provisions under the Generalized System of Preferences (GSP). President Donald Trump issued a presidential proclamation on Tuesday, leading to the removal of these products from the privilege beginning November 1. As of November 1, these products "will no longer qualify for duty-free preferences under the GSP programme but may continue to be imported subject to regular Most Favored Nation duty-rates," an official of US Trade Representative said. A review of the products indicates that the presidential proclamation is not country-specific, but product specific. With India being the largest beneficiary of the GSP, it has been hit the most by the latest decision of the Trump administration. The GSP, the largest and oldest US trade preference programme, is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. A count of these products indicated that at least 50 of them are from India. Notably, India is the largest beneficiary of the GSP. In 2017, India's duty-free export to the US under the GSP was to the tune of more than USD 5.6 billion. The volume of India's export to the US impacted by the latest move of the Trump administration is not known yet, but the list of products from which duty-free import provision has been removed reflects that a large number of small and medium-size business could be impacted, in particular, handloom and agricultural sector. In his presidential proclamation, Trump said that certain 'de minimis' waivers will no longer be granted for any product, regardless of the country source, that exceeds the GSP's Competitive Need Limitation (CNL) thresholds. The CNL thresholds are quantitative ceilings on GSP benefits for each product and designated beneficiary country. Trump said he had determined in 2017 certain beneficiary developing countries exported eligible articles in quantities exceeding the applicable competitive-need limitations. "I hereby terminate the duty-free treatment for such articles from such beneficiary developing countries," he said. Products from other countries like Argentina, Brazil, Thailand, Suriname, Pakistan, Turkey, the Philippines, Ecuador and Indonesia have also been removed from the GSP list. Some of the prominent Indian products removed from the duty-free provisions of the GSP include dried pigeon pea seed; areca nuts, fresh or dried, in shell; turpentine gum; mangoes, prepared or preserved by vinegar or acetic acid; sandstone, merely cut into blocks or slabs of a rectangular (including square) shape; tin chlorides; barium chlorides; salts and esters of tartaric acid, nesoi; and trimethyl phosphite. Full-grain unsplit or grain split buffalo hide or skin; grain split whole buffalo leather, without hair on; whole buffalo skin leather (not full grain unsplits/grain splits); and full grain unsplit buffalo leather (not whole), have also been removed from the duty-free the GSP list. Dyed, plain weave certified hand-loomed fabrics of cotton, containing 85 percent or more cotton by weight; plain weave certified hand-loomed fabrics of cotton, containing 85 per cent or more cotton by weight, hand-loomed carpet and other textile floor coverings, not of pile construction, woven, made up of man-made textile materials have also been removed. Base metal clad with gold mixed link necklaces and neck chains and keyboard musical instruments, like harmoniums and similar keyboard instruments with free metal reeds, are among the other products. These products can still be exported to the US from India but they will be subject to regular tariffs. In April, the US announced the eligibility review of India for the GSP. According to the USTR, the total US imports under GSP in 2017 was USD 21.2 billion, of which India was the biggest beneficiary with USD 5.6 billion, followed by Thailand (USD 4.2 billion) and Brazil (USD 2.5 billion). The programme has now been renewed through December 31, 2020. FICCI in a submission to the USTR had said that the termination of the GSP would be contrary to the legislative objective and the history of the Trade Reform Act of 1974 of furthering the economic development of developing countries. It would cause significant distress to the export-oriented sector leading to increased cost for US industries that use products under the GSP, it said.

50 Indian items face heat as US revokes duty-free privileges on import of 90 products

The government on Wednesday said it is raising import tariffs on 19 "non-essential items," marking a further tilt toward protectionism as it tries to reduce its widening current account deficit and tackle a sharp slide in the rupee.

The new tariff structure, which goes into effect Thursday, will see the government raise customs duties on items such as air conditioners, refrigerators, footwear, speakers, luggage and aviation turbine fuel, among other items.

The move could hit imports from countries like China and South Korea, which manufacture some of the high-end washing machines, refrigerators and air conditioners sold in India.

Amid a growing climate of protectionism, the government had earlier said it was contemplating such a move to take pressure off the rupee, which has weakened by more than 12 per cent this year and is Asia's worst performing currency.

"This is positive news for the rupee given that it will help reduce India's current account deficit," said a forex trader at a foreign bank.

Other bankers were more sceptical about whether the move can rein in rupee weakness, noting that demand for the high-end goods largely prices inelastic.

"This is a sentiment booster for the rupee," said SBI Chief Economist Soumya Kanti Ghosh, adding that the overall impact on current account deficit will be muted.

"The central bank needs to intervene more actively in the forex market to support the rupee. These tariff measures won't help in the long term," said Ghosh.

The total value of imports of the 19 items in last fiscal year ended March was about 860 billion Indian rupees ($11.84 billion), the government said in a circular.

Indian imports in the same period totalled $459.67 billion.

The hike in import duties on the identified non-essential items is likely to have a modest impact on curtailing the size of the current account deficit in fiscal 2019. The deficit last stood at around 2.4 per cent of GDP, in the April-June quarter, and it is expected to widen to 2.8 per cent for the year ending March 2019.

The latest move could impact companies like South Korean electronics giants Samsung Electronics Co and LG Electronics Inc, along with the likes of big name brands such as footwear maker Nike Inc, luggage maker Samsonite International SA and audio products maker Bose Corp.

The companies were not immediately reachable for comment.

The decision could also sting India's vast gem and jewellery sector as the government has raised tariffs on imported diamonds and gemstones, along with increasing tariffs on jewellery items.

The move is the PM Narendra Modi-led government's latest toward protectionism, as it promotes its 'Make in India' programme.

India announced higher import tax on electronics products such as mobile phones and television sets in December, and then on 40 more items in the budget in February. These include goods as varied as sunglasses, juices and auto components.

Reuters earlier this month has also reported that India's steel ministry is mulling increasing the effective import duty on some steel products.

The government on Wednesday said it is raising import tariffs on 19 "non-essential items," marking a further tilt toward protectionism as it tries to reduce its widening current account deficit and tackle a sharp slide in the rupee.

The government on Wednesday said it is raising import tariffs on 19 "non-essential items," marking a further tilt toward protectionism as it tries to reduce its widening current account deficit and tackle a sharp slide in the rupee. The new tariff structure, which goes into effect Thursday, will see the government raise customs duties on items such as air conditioners, refrigerators, footwear, speakers, luggage and aviation turbine fuel, among other items. The move could hit imports from countries like China and South Korea, which manufacture some of the high-end washing machines, refrigerators and air conditioners sold in India. Amid a growing climate of protectionism, the government had earlier said it was contemplating such a move to take pressure off the rupee, which has weakened by more than 12 per cent this year and is Asia's worst performing currency. "This is positive news for the rupee given that it will help reduce India's current account deficit," said a forex trader at a foreign bank. Other bankers were more sceptical about whether the move can rein in rupee weakness, noting that demand for the high-end goods largely prices inelastic. "This is a sentiment booster for the rupee," said SBI Chief Economist Soumya Kanti Ghosh, adding that the overall impact on current account deficit will be muted. "The central bank needs to intervene more actively in the forex market to support the rupee. These tariff measures won't help in the long term," said Ghosh. The total value of imports of the 19 items in last fiscal year ended March was about 860 billion Indian rupees ($11.84 billion), the government said in a circular. Indian imports in the same period totalled $459.67 billion. The hike in import duties on the identified non-essential items is likely to have a modest impact on curtailing the size of the current account deficit in fiscal 2019. The deficit last stood at around 2.4 per cent of GDP, in the April-June quarter, and it is expected to widen to 2.8 per cent for the year ending March 2019. The latest move could impact companies like South Korean electronics giants Samsung Electronics Co and LG Electronics Inc, along with the likes of big name brands such as footwear maker Nike Inc, luggage maker Samsonite International SA and audio products maker Bose Corp. The companies were not immediately reachable for comment. The decision could also sting India's vast gem and jewellery sector as the government has raised tariffs on imported diamonds and gemstones, along with increasing tariffs on jewellery items. The move is the PM Narendra Modi-led government's latest toward protectionism, as it promotes its 'Make in India' programme. India announced higher import tax on electronics products such as mobile phones and television sets in December, and then on 40 more items in the budget in February. These include goods as varied as sunglasses, juices and auto components. Reuters earlier this month has also reported that India's steel ministry is mulling increasing the effective import duty on some steel products.

India raises import tariffs on 19 items in bid to stem rupee slide

World Environment Day will be celebrated on 5th June. Did you know that Sweden's waste recycling management is so extraordinary that they have run out of waste and have started importing rubbish from other countries to keep its state-of-the-art recycling plants functioning.

Less than 1 per cent of Swedish household waste was sent to landfill in 2017 or any year since 2011. &nbsp

So why is their recycling system so far ahead? &nbspSweden was one of the first countries to implement a heavy tax on fossil fuels in 1991 and now sources almost half its electricity from renewables.&nbsp

“Swedish people are keen on being out in nature. We worked on communications to make people aware not to throw things outdoors so that we can recycle and reuse,” said Anna-Carin Gripwall, director of communications for Avfall Sverige, the Swedish Waste Management’s recycling association.

The aim in Sweden is still to stop people from sending waste for recycling altogether. A national campaign called the “Miljönär-vänlig” movement has for several years promoted the notion that there is much to be gained through repairing, sharing and reusing.&nbsp

Sweden has implemented a cohesive national recycling policy so that even though private companies undertake most of the business of importing and burning waste, the energy goes into a national heating network to heat homes through the extremely cold winter.

“That is a key reason that we have this district network so that we can make use of the heating from the waste plants. In the southern part of Europe, they do not make use of the heating from the waste, and, it just goes out the chimney. Here we use it as a substitute for fossil fuel,” PTI reported Gripwell as saying.

She describes Sweden’s policy of importing waste to recycle from other countries as a temporary situation. “There’s a ban on landfill in EU countries, so instead of paying the fine they send it to us as a service. They should and will build their own plants, to reduce their own waste, as we are working hard to do in Sweden,” Ms Gripwall says.

A lot of investment has been gone into enhancing the waste collection techniques such as automated vacuum systems in residential blocks, removing the need for collection transport, and underground container systems that free up road space and get rid of any smells. 
&nbsp

Less than 1 per cent of Swedish household waste was sent to landfill in 2017 or any year since 2011

World Environment Day will be celebrated on 5th June. Did you know that Sweden's waste recycling management is so extraordinary that they have run out of waste and have started importing rubbish from other countries to keep its state-of-the-art recycling plants functioning. Less than 1 per cent of Swedish household waste was sent to landfill in 2017 or any year since 2011. So why is their recycling system so far ahead? &nbspSweden was one of the first countries to implement a heavy tax on fossil fuels in 1991 and now sources almost half its electricity from renewables. “Swedish people are keen on being out in nature. We worked on communications to make people aware not to throw things outdoors so that we can recycle and reuse,” said Anna-Carin Gripwall, director of communications for Avfall Sverige, the Swedish Waste Management’s recycling association. The aim in Sweden is still to stop people from sending waste for recycling altogether. A national campaign called the “Miljönär-vänlig” movement has for several years promoted the notion that there is much to be gained through repairing, sharing and reusing. Sweden has implemented a cohesive national recycling policy so that even though private companies undertake most of the business of importing and burning waste, the energy goes into a national heating network to heat homes through the extremely cold winter. “That is a key reason that we have this district network so that we can make use of the heating from the waste plants. In the southern part of Europe, they do not make use of the heating from the waste, and, it just goes out the chimney. Here we use it as a substitute for fossil fuel,” PTI reported Gripwell as saying. She describes Sweden’s policy of importing waste to recycle from other countries as a temporary situation. “There’s a ban on landfill in EU countries, so instead of paying the fine they send it to us as a service. They should and will build their own plants, to reduce their own waste, as we are working hard to do in Sweden,” Ms Gripwall says. A lot of investment has been gone into enhancing the waste collection techniques such as automated vacuum systems in residential blocks, removing the need for collection transport, and underground container systems that free up road space and get rid of any smells.

Sweden has run out of waste and is importing it from other countries

China has agreed to significantly increase its purchases of US goods and services, the two countries said on Saturday, but made no mention of a $200 billion target the White House had touted earlier.

Beijing and Washington agreed they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to close the $335 billion annual US goods and services trade deficit with China.

A joint statement issued at the conclusion of intensive trade talks in Washington did not indicate whether the two countries would delay or drop their tariff threats on billions of dollars worth of each country's goods, which has sparked fears of a wider trade war and roiled financial markets.

"There was a consensus on taking effective measures to substantially reduce the United States' trade deficit in goods with China," the joint statement said.

"To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services."

US President Donald Trump has threatened to impose tariffs on up to $150 billion on Chinese goods to combat what his administration says is Beijing's misappropriation of US intellectual property through joint venture requirements and other policies that force technology transfers.

Beijing denies such coercion and has threatened equal retaliation, including tariffs on some of its largest US imports - among them aircraft, soybeans and autos.

A report by China's state-run Xinhua news agency described the statement from the two governments as "vowing not to launch a trade war against each other."

While the statement said the two sides would engage at high levels and "seek to resolve their economic and trade concerns in a proactive manner," it made no mention of tariffs.

It said there was consensus between Washington and Beijing on the need to create "favorable conditions to increase trade" in manufactured goods and services. This could be a reference to China's previous pledges to open up more economic sectors to services.

The United States will also send a team to China to work out the details of increased agricultural and energy exports, the countries said, without specifying timing.

A senior US official said that during discussions with a member of President Xi Jinping's office, China was considering a package that relied on major purchases of US liquefied natural gas, including a contract for a U.S. firm to build LNG receiving and processing facilities in China.

The package, which also would include new commitments on intellectual property protections, could be agreed by a potential mid-year visit to Washington by China's Vice President Wang Qishan, the official said.

Trump made cutting the US trade deficit with China a promise in his presidential campaign.

During an initial round of talks earlier this month in Beijing, Washington demanded that China reduce its trade surplus by $200 billion - a figure most economists say is impossible to achieve because it would require a massive change in the composition of commerce between the two countries.

As of late Thursday, US officials were still pressing China to agree to that size reduction.

But economists say that level would be extremely difficult to achieve, especially as US tax cuts are spurring demand for more imports. The $200 billion figure is equivalent to about 90 percent of Boeing Co's annual aircraft production and is larger than all of the United States' global annual agricultural and oil exports.

Eswar Prasad, a Cornell University trade professor and former head of the International Monetary Fund's China division, said that Beijing had clearly balked at a specific quantitative commitment.

"It is a very limited and tentative agreement mainly designed to deescalate tensions," Prasad said of the joint statement.

The statement was vague on the Trump administration's core intellectual property complaints, saying that both countries "attach paramount importance to intellectual property protections ... China will advance relevant amendments to its laws and regulations, including the Patent Law."

There are concerns among some legislators and trade experts that Trump could give priority to a narrower trade deficit over tackling what they say is China's abuse of intellectual property rights. Any deal under which China would import more goods could easily be reversed, economists say.

The statement made no mention of whether there would be a relaxation of paralyzing restrictions on Chinese telecommunications equipment maker ZTE Corp imposed last month by the U.S. Commerce Department.

The action, related to violation of U.S. sanctions on Iran, banned American companies from selling semiconductors and other components to ZTE, causing the Shenzhen-based company to cease operations.

Earlier this week, Trump tweeted that he directed the Commerce Department to put ZTE back in business and said the company's situation was part of an overall trade deal with China.

Beijing and Washington agreed they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to close the $335 billion annual U.S. goods and services trade deficit with China

China has agreed to significantly increase its purchases of US goods and services, the two countries said on Saturday, but made no mention of a $200 billion target the White House had touted earlier. Beijing and Washington agreed they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to close the $335 billion annual US goods and services trade deficit with China. A joint statement issued at the conclusion of intensive trade talks in Washington did not indicate whether the two countries would delay or drop their tariff threats on billions of dollars worth of each country's goods, which has sparked fears of a wider trade war and roiled financial markets. "There was a consensus on taking effective measures to substantially reduce the United States' trade deficit in goods with China," the joint statement said. "To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services." US President Donald Trump has threatened to impose tariffs on up to $150 billion on Chinese goods to combat what his administration says is Beijing's misappropriation of US intellectual property through joint venture requirements and other policies that force technology transfers. Beijing denies such coercion and has threatened equal retaliation, including tariffs on some of its largest US imports - among them aircraft, soybeans and autos. A report by China's state-run Xinhua news agency described the statement from the two governments as "vowing not to launch a trade war against each other." While the statement said the two sides would engage at high levels and "seek to resolve their economic and trade concerns in a proactive manner," it made no mention of tariffs. It said there was consensus between Washington and Beijing on the need to create "favorable conditions to increase trade" in manufactured goods and services. This could be a reference to China's previous pledges to open up more economic sectors to services. The United States will also send a team to China to work out the details of increased agricultural and energy exports, the countries said, without specifying timing. A senior US official said that during discussions with a member of President Xi Jinping's office, China was considering a package that relied on major purchases of US liquefied natural gas, including a contract for a U.S. firm to build LNG receiving and processing facilities in China. The package, which also would include new commitments on intellectual property protections, could be agreed by a potential mid-year visit to Washington by China's Vice President Wang Qishan, the official said. Trump made cutting the US trade deficit with China a promise in his presidential campaign. During an initial round of talks earlier this month in Beijing, Washington demanded that China reduce its trade surplus by $200 billion - a figure most economists say is impossible to achieve because it would require a massive change in the composition of commerce between the two countries. As of late Thursday, US officials were still pressing China to agree to that size reduction. But economists say that level would be extremely difficult to achieve, especially as US tax cuts are spurring demand for more imports. The $200 billion figure is equivalent to about 90 percent of Boeing Co's annual aircraft production and is larger than all of the United States' global annual agricultural and oil exports. Eswar Prasad, a Cornell University trade professor and former head of the International Monetary Fund's China division, said that Beijing had clearly balked at a specific quantitative commitment. "It is a very limited and tentative agreement mainly designed to deescalate tensions," Prasad said of the joint statement. The statement was vague on the Trump administration's core intellectual property complaints, saying that both countries "attach paramount importance to intellectual property protections ... China will advance relevant amendments to its laws and regulations, including the Patent Law." There are concerns among some legislators and trade experts that Trump could give priority to a narrower trade deficit over tackling what they say is China's abuse of intellectual property rights. Any deal under which China would import more goods could easily be reversed, economists say. The statement made no mention of whether there would be a relaxation of paralyzing restrictions on Chinese telecommunications equipment maker ZTE Corp imposed last month by the U.S. Commerce Department. The action, related to violation of U.S. sanctions on Iran, banned American companies from selling semiconductors and other components to ZTE, causing the Shenzhen-based company to cease operations. Earlier this week, Trump tweeted that he directed the Commerce Department to put ZTE back in business and said the company's situation was part of an overall trade deal with China.

China agrees to import more from US, no sign of US $200 billion figure

America&#39;s massive trade deficit with China is estimated to have resulted in about two million job losses in the US, the White House has said, defending President Donald Trump&#39;s decision to initiate strong actions against China&#39;s &quot;unfair&quot; trade practices.

Trump imposed tariffs on about $60 billion worth of Chinese imports to punish the country for its &quot;unfair&quot; seizure of American intellectual property, a move that could escalate the already tense trade relations between the world&#39;s two biggest economies.

The move came after a seven-month investigation into the intellectual property theft, which has been a longstanding point of contention in US-China trade relations.

China also announced retaliatory measures against the US.

A senior administration official told reporters: &quot;By some calculations, every billion dollar of trade deficit that arises from market-distorted policies, costs us about 6,000 jobs. A very conservative calculation, by some estimates, is that trade deficit results in about two million more jobs in China and two million less here. This is a serious problem that the US side is keenly aware of&quot;.

China&#39;s &quot;unfair&quot; trade practices have resulted in a goods trade deficit of $370 billion, the official said.

The Trump administration said that it is for China to decide what course it wants to take.

&quot;The point here is that China will have a choice as to how to respond, and they have benefited far more from this relationship than we have. We will certainly take that into account,&quot; the official said.

The typical American corporation that wants to go to China and sell its goods into the Chinese market is on the horns of a dilemma.

Responding to questions, the official said the concerns with Chinese economic practices are widespread throughout the United States and around the world.

&quot;We have heard from many of our trading partners that they share many of these concerns,&quot; the official said.

Another administration official said China benefits far more from the US-China trade relationship than the US does.

Since 2001, when China joined the World Trade Organisation, its economy has grown from $1 trillion of GDP to $12 trillion; roughly an 800 per cent growth rate.

&quot;During the same period of time, the American economy sputtered. It went from an annual growth rate of about 3.5 per cent between 1947 and 2000, down to around two per cent, which everybody wanted to say was the new normal for America. But the contrast between China&#39;s growth and its unfair trade practices, and what had happened to the US in terms of growth and wage growth, is quite startling,&quot; the official said.

Later State Department Spokesperson Heather Nauert said Trump has been very clear from the first day on the campaign trail, longstanding concerns that he has and administration-wide people have, with China&#39;s &quot;unfair&quot; trade practices.

&quot;It&#39;s natural for us to have to address things that we don&#39;t agree on. One of them is certainly trade. The President has fought very hard for advancing opportunities, economic opportunities for American businesses, but also the American people,&quot; she said.

Senate Finance Committee Ranking Member Ron Wyden welcomed the decision.

&quot;China has cheated, stolen and bullied American industry on trade for decades, causing massive economic wreckage to workers, employers and communities across America in the process. Our country must stand up against China&#39;s trade blackmail, so I am encouraged that the administration is focused on protecting the technologies that China publicly targeted,&quot; Wyden said.

Senator Sherrod Brown welcomed the news that the Trump administration is taking steps to launch crackdown on China&#39;s violation of intellectual property laws.

Business Roundtable said unilaterally imposing tariffs or other restrictions without a long-term strategy to bring about reforms in China will only raise prices in America, make American companies and products less competitive, and harm US workers and consumers.

&quot;The administration should instead pursue a comprehensive approach centred around several strategic priorities. This includes working closely with our international partners to identify unfair trade barriers and practices that China must remove, setting deadlines for such reforms and outlining actions that the US will take if those reforms are not undertaken,&quot; it said.

China's "unfair" trade practices have resulted in a goods trade deficit of $370 billion, the official said

America's massive trade deficit with China is estimated to have resulted in about two million job losses in the US, the White House has said, defending President Donald Trump's decision to initiate strong actions against China's "unfair" trade practices. Trump imposed tariffs on about $60 billion worth of Chinese imports to punish the country for its "unfair" seizure of American intellectual property, a move that could escalate the already tense trade relations between the world's two biggest economies. The move came after a seven-month investigation into the intellectual property theft, which has been a longstanding point of contention in US-China trade relations. China also announced retaliatory measures against the US. A senior administration official told reporters: "By some calculations, every billion dollar of trade deficit that arises from market-distorted policies, costs us about 6,000 jobs. A very conservative calculation, by some estimates, is that trade deficit results in about two million more jobs in China and two million less here. This is a serious problem that the US side is keenly aware of". China's "unfair" trade practices have resulted in a goods trade deficit of $370 billion, the official said. The Trump administration said that it is for China to decide what course it wants to take. "The point here is that China will have a choice as to how to respond, and they have benefited far more from this relationship than we have. We will certainly take that into account," the official said. The typical American corporation that wants to go to China and sell its goods into the Chinese market is on the horns of a dilemma. Responding to questions, the official said the concerns with Chinese economic practices are widespread throughout the United States and around the world. "We have heard from many of our trading partners that they share many of these concerns," the official said. Another administration official said China benefits far more from the US-China trade relationship than the US does. Since 2001, when China joined the World Trade Organisation, its economy has grown from $1 trillion of GDP to $12 trillion; roughly an 800 per cent growth rate. "During the same period of time, the American economy sputtered. It went from an annual growth rate of about 3.5 per cent between 1947 and 2000, down to around two per cent, which everybody wanted to say was the new normal for America. But the contrast between China's growth and its unfair trade practices, and what had happened to the US in terms of growth and wage growth, is quite startling," the official said. Later State Department Spokesperson Heather Nauert said Trump has been very clear from the first day on the campaign trail, longstanding concerns that he has and administration-wide people have, with China's "unfair" trade practices. "It's natural for us to have to address things that we don't agree on. One of them is certainly trade. The President has fought very hard for advancing opportunities, economic opportunities for American businesses, but also the American people," she said. Senate Finance Committee Ranking Member Ron Wyden welcomed the decision. "China has cheated, stolen and bullied American industry on trade for decades, causing massive economic wreckage to workers, employers and communities across America in the process. Our country must stand up against China's trade blackmail, so I am encouraged that the administration is focused on protecting the technologies that China publicly targeted," Wyden said. Senator Sherrod Brown welcomed the news that the Trump administration is taking steps to launch crackdown on China's violation of intellectual property laws. Business Roundtable said unilaterally imposing tariffs or other restrictions without a long-term strategy to bring about reforms in China will only raise prices in America, make American companies and products less competitive, and harm US workers and consumers. "The administration should instead pursue a comprehensive approach centred around several strategic priorities. This includes working closely with our international partners to identify unfair trade barriers and practices that China must remove, setting deadlines for such reforms and outlining actions that the US will take if those reforms are not undertaken," it said.

Trade deficit with China costs 2 million jobs to US: White House

The US trade deficit increased to a more than nine-year high in January, with the shortfall with China widening sharply, suggesting that President Donald Trump&rsquo;s &ldquo;America First&rdquo; trade policies are unlikely to have a material impact on the deficit.&nbsp;

The trade deficit continues to widen a year into the Trump presidency. Trump, who claims that the United States is being taken advantage of by its trading partners, has imposed tariffs on imports of some goods to shield domestic industries. The protectionist measures have sparked fears of a trade war.

The Commerce Department said on Wednesday the trade gap jumped 5.0 percent to $56.6 billion. That was the highest level since October 2008 and exceeded economists&rsquo; expectations of an increase to $55.1 billion. Part of the rise in the trade deficit in January reflected commodity price increases.

The politically sensitive trade deficit with China surged 16.7 percent to $36.0 billion, the highest since September 2015. The deficit with Canada soared 65 percent to a three-year high of $3.6 billion.

Trump in late January imposed broad tariffs on imported solar panels and large washing machines. Last week, Trump announced he would slap import tariffs of 25 percent on steel and 10 percent on aluminium to protect domestic producers.

While these actions may prove politically popular with Trump&rsquo;s working-class political base, especially in states hard-hit by factory closures and import competition, analyst warns they could undercut economic growth.&nbsp;

There are fears that the tariffs could jeopardize talks on the North American Free Trade Agreement (NAFTA) linking Canada, Mexico and the United States. Trump ordered a renegotiation of the trade pact to offer terms more favourable to Washington.&nbsp;

FULL EMPLOYMENT

Trump&rsquo;s &ldquo;America First&rdquo; trade policies are part of an attempt to boost annual economic growth to 3 percent on a sustainable basis. The government in January slashed corporate and individual income taxes.

But with the economy almost at full employment, the increase in demand spurred by the $1.5 trillion tax package will probably be satisfied with imports, further worsening the trade deficit.

In a separate report on Wednesday, ADP Research Institute said U.S. private employers added 235,000 jobs in February. The report, which is jointly developed with Moody&rsquo;s Analytics, was published ahead of the government&rsquo;s more comprehensive employment data on Friday.

According to a Reuters survey of economists, nonfarm payrolls probably increased by 200,000 jobs last month, matching January&rsquo;s gains. The unemployment rate is forecast falling one-tenth of a percentage point to 4.0 percent, which would be the lowest level since December 2000.

US&nbsp;financial markets were little moved by the data.

The surge in the January trade deficit was flagged by an advance goods trade deficit report last week. When adjusted for inflation, the trade deficit increased to $69.7 billion from $68.5 billion in December.

The so-called real trade deficit is above the fourth-quarter average of $66.8 billion. This suggests trade would subtract from first-quarter gross domestic product unless the deficit shrinks in February and March. Trade sliced 1.13 percentage point from fourth-quarter GDP growth.

The economy grew at a 2.5 percent annualized rate during that period. In January, exports fell 1.3 percent to $200.9 billion as shipments of civilian aircraft and crude oil declined. But exports of consumer goods rose to a record high and those of motor vehicles, parts and engines were the highest since July 2014.

Exports to China tumbled 28.1 percent. Imports were unchanged at $257.5 billion in January amid declines in imports of cellphones and civilian aircraft. Crude oil imports increased by $2.2 billion, reflecting higher prices. Imports from China rose 2.9 percent.

In the third report on Wednesday, the Labor Department said worker productivity was flat in the fourth quarter instead of declining at a 0.1 percent rate as it had reported last month. It increased at a 1.1 percent rate compared to the fourth quarter of 2016

Productivity grew at a 2.6 percent rate in the third quarter. Sluggish productivity could make it difficult for the Trump administration to achieve its 3 percent growth target. Annual economic growth has not surpassed 3 percent since 2005. Gross domestic product expanded 2.3 percent in 2017.

The politically sensitive trade deficit with China surged 16.7 percent to $36.0 billion, the highest since September 2015

The US trade deficit increased to a more than nine-year high in January, with the shortfall with China widening sharply, suggesting that President Donald Trump’s “America First” trade policies are unlikely to have a material impact on the deficit. The trade deficit continues to widen a year into the Trump presidency. Trump, who claims that the United States is being taken advantage of by its trading partners, has imposed tariffs on imports of some goods to shield domestic industries. The protectionist measures have sparked fears of a trade war. The Commerce Department said on Wednesday the trade gap jumped 5.0 percent to $56.6 billion. That was the highest level since October 2008 and exceeded economists’ expectations of an increase to $55.1 billion. Part of the rise in the trade deficit in January reflected commodity price increases. The politically sensitive trade deficit with China surged 16.7 percent to $36.0 billion, the highest since September 2015. The deficit with Canada soared 65 percent to a three-year high of $3.6 billion. Trump in late January imposed broad tariffs on imported solar panels and large washing machines. Last week, Trump announced he would slap import tariffs of 25 percent on steel and 10 percent on aluminium to protect domestic producers. While these actions may prove politically popular with Trump’s working-class political base, especially in states hard-hit by factory closures and import competition, analyst warns they could undercut economic growth. There are fears that the tariffs could jeopardize talks on the North American Free Trade Agreement (NAFTA) linking Canada, Mexico and the United States. Trump ordered a renegotiation of the trade pact to offer terms more favourable to Washington. FULL EMPLOYMENT Trump’s “America First” trade policies are part of an attempt to boost annual economic growth to 3 percent on a sustainable basis. The government in January slashed corporate and individual income taxes. But with the economy almost at full employment, the increase in demand spurred by the $1.5 trillion tax package will probably be satisfied with imports, further worsening the trade deficit. In a separate report on Wednesday, ADP Research Institute said U.S. private employers added 235,000 jobs in February. The report, which is jointly developed with Moody’s Analytics, was published ahead of the government’s more comprehensive employment data on Friday. According to a Reuters survey of economists, nonfarm payrolls probably increased by 200,000 jobs last month, matching January’s gains. The unemployment rate is forecast falling one-tenth of a percentage point to 4.0 percent, which would be the lowest level since December 2000. US financial markets were little moved by the data. The surge in the January trade deficit was flagged by an advance goods trade deficit report last week. When adjusted for inflation, the trade deficit increased to $69.7 billion from $68.5 billion in December. The so-called real trade deficit is above the fourth-quarter average of $66.8 billion. This suggests trade would subtract from first-quarter gross domestic product unless the deficit shrinks in February and March. Trade sliced 1.13 percentage point from fourth-quarter GDP growth. The economy grew at a 2.5 percent annualized rate during that period. In January, exports fell 1.3 percent to $200.9 billion as shipments of civilian aircraft and crude oil declined. But exports of consumer goods rose to a record high and those of motor vehicles, parts and engines were the highest since July 2014. Exports to China tumbled 28.1 percent. Imports were unchanged at $257.5 billion in January amid declines in imports of cellphones and civilian aircraft. Crude oil imports increased by $2.2 billion, reflecting higher prices. Imports from China rose 2.9 percent. In the third report on Wednesday, the Labor Department said worker productivity was flat in the fourth quarter instead of declining at a 0.1 percent rate as it had reported last month. It increased at a 1.1 percent rate compared to the fourth quarter of 2016 Productivity grew at a 2.6 percent rate in the third quarter. Sluggish productivity could make it difficult for the Trump administration to achieve its 3 percent growth target. Annual economic growth has not surpassed 3 percent since 2005. Gross domestic product expanded 2.3 percent in 2017.

US trade deficit hits more than nine-year high as exports falter

Following a bird flu scare in India, Saudi Arabia has decided to temporarily ban the imports of live birds, hatching eggs and chicks from India. The Saudi agriculture ministry confirmed the same on Thursday.

According to the Saudi Ministry of Environment, Water and Agriculture the ban was issued keeping in view the warning released by the Paris-based OIE.

The OIE report mentioned that the H5N8 virus was detected on December 26 among birds in a village called Dasarahalli near Bengaluru. The virus has killed close to 951 birds while others were culled.&nbsp;

The World Organisation for Animal Health (OIE) cited a report from the Indian agriculture ministry stating that India had reported an outbreak of highly contagious bird flu virus near Bengaluru, Karnataka in January.

(With inputs from Reuters)

 
&nbsp;

The ban was issued keeping in view the warning released by the Paris-based OIE

Following a bird flu scare in India, Saudi Arabia has decided to temporarily ban the imports of live birds, hatching eggs and chicks from India. The Saudi agriculture ministry confirmed the same on Thursday. According to the Saudi Ministry of Environment, Water and Agriculture the ban was issued keeping in view the warning released by the Paris-based OIE. The OIE report mentioned that the H5N8 virus was detected on December 26 among birds in a village called Dasarahalli near Bengaluru. The virus has killed close to 951 birds while others were culled. The World Organisation for Animal Health (OIE) cited a report from the Indian agriculture ministry stating that India had reported an outbreak of highly contagious bird flu virus near Bengaluru, Karnataka in January. (With inputs from Reuters)

Saudi Arabia temporarily bans poultry imports from India over bird flu scare

German exports fell unexpectedly in October while vibrant domestic demand pushed up imports, narrowing its trade surplus and adding to evidence that Europe&#39;s biggest economy started the fourth quarter on a weak footing, data showed on Friday.

The German economy, which is expected to grow by more than 2 percent this year, is enjoying a consumer-led upswing, propelled by record-high employment, rising real wages, moderate inflation, and ultra-low borrowing costs.&nbsp;

Seasonally adjusted exports edged down by 0.4 per cent on the month while imports jumped by 1.8 per cent, data from the Federal Statistics Office showed. The exports figure confounded expectations for a 1.0 per cent rise while imports beat a forecast for a 1.1 per cent increase.

&quot;German industry has gone through a small roller coaster ride since the start of the summer&quot;, ING economist Carsten Brzeski said, adding that disappointing numbers had been followed by impressive rebounds.&nbsp;

&quot;Behind the vacation and weather-driven white noise of monthly data, however, there is a clear upward trend. The export sector has once more become an important growth driver in 2017&quot;, Brzeski&nbsp;continued.

A breakdown of unadjusted figures showed that German imports from other European Union countries surged by 10.1 per cent while those from countries outside the bloc rose by 4.8 per cent.&nbsp;The seasonally adjusted trade surplus narrowed to 19.9 billion euros from an upwardly revised 21.9 billion euros in September. The October reading was lower than the Reuters consensus forecast for 21.8 billion euros.

Germany&#39;s wider current account surplus, which measures the flow of goods, services, and investments, fell to 18.1 billion euros after an upwardly revised reading of 25.8 billion euros in September, unadjusted data showed.&nbsp;

The trade figures followed economic data released on Thursday that showed industrial output fell unexpectedly in October - a drop economists linked to public holidays that let workers take long weekends.

The weak figures came after data on Wednesday showed that industrial orders had risen unexpectedly in October, suggesting that output could bounce back in the coming months.&nbsp;Rising exports and business investment in equipment helped the German economy to shift into a higher gear in the third quarter - it expanded by 0.8 per cent on the quarter, up from 0.6 per cent in the previous three months.

&quot;This week&#39;s industrial data show that even the German economy can have weaker moments&quot;, Brzeski said, adding that the fourth quarter could bring a slowdown in overall growth.&nbsp;For 2017 as a whole, the Ifo Institute for Economic Research predicts economic growth of 2.3 per cent which would translate into a calendar-adjusted expansion rate of 2.6 per cent - the fastest pace in six years.

Europe's second-biggest economy - Germany - takes a hit as it sees an unexpected decline in exports sector

German exports fell unexpectedly in October while vibrant domestic demand pushed up imports, narrowing its trade surplus and adding to evidence that Europe's biggest economy started the fourth quarter on a weak footing, data showed on Friday. The German economy, which is expected to grow by more than 2 percent this year, is enjoying a consumer-led upswing, propelled by record-high employment, rising real wages, moderate inflation, and ultra-low borrowing costs. Seasonally adjusted exports edged down by 0.4 per cent on the month while imports jumped by 1.8 per cent, data from the Federal Statistics Office showed. The exports figure confounded expectations for a 1.0 per cent rise while imports beat a forecast for a 1.1 per cent increase. "German industry has gone through a small roller coaster ride since the start of the summer", ING economist Carsten Brzeski said, adding that disappointing numbers had been followed by impressive rebounds. "Behind the vacation and weather-driven white noise of monthly data, however, there is a clear upward trend. The export sector has once more become an important growth driver in 2017", Brzeski continued. A breakdown of unadjusted figures showed that German imports from other European Union countries surged by 10.1 per cent while those from countries outside the bloc rose by 4.8 per cent. The seasonally adjusted trade surplus narrowed to 19.9 billion euros from an upwardly revised 21.9 billion euros in September. The October reading was lower than the Reuters consensus forecast for 21.8 billion euros. Germany's wider current account surplus, which measures the flow of goods, services, and investments, fell to 18.1 billion euros after an upwardly revised reading of 25.8 billion euros in September, unadjusted data showed. The trade figures followed economic data released on Thursday that showed industrial output fell unexpectedly in October - a drop economists linked to public holidays that let workers take long weekends. The weak figures came after data on Wednesday showed that industrial orders had risen unexpectedly in October, suggesting that output could bounce back in the coming months. Rising exports and business investment in equipment helped the German economy to shift into a higher gear in the third quarter - it expanded by 0.8 per cent on the quarter, up from 0.6 per cent in the previous three months. "This week's industrial data show that even the German economy can have weaker moments", Brzeski said, adding that the fourth quarter could bring a slowdown in overall growth. For 2017 as a whole, the Ifo Institute for Economic Research predicts economic growth of 2.3 per cent which would translate into a calendar-adjusted expansion rate of 2.6 per cent - the fastest pace in six years.

Unexpected decline in German exports narrows trade surplus

Indian manufacturers of finished steel goods are urging New Delhi to end tariffs on cheap imports of the alloy from China, Japan and South Korea, worried the protectionist measures may cost them billions in lost overseas sales.&nbsp; 
 
India put the tariffs in place in February to ensure a minimum import price (MIP) for 173 steel products, mainly to guard against cheap Chinese exports of around 10 million tonnes a month of items such as hot-rolled and cold-rolled steel that have undercut US European and Asian producers.&nbsp; 
 
The gambit to protect India&#39;s domestic steelmakers is threatening export revenues earned by engineering and manufacturing companies as artificially high prices for a primary raw material for everything from home appliances to ships make their products uncompetitive in foreign markets.&nbsp; 
 
The MIP policy has hit engineering firms especially hard. These mostly small- to mid-sized companies together export goods worth $56 billion a year, a fifth of India&#39;s shipped merchandise, made at least partly with steel now priced 15 per cent higher on average than at end-2015 and up to 30 per cent more than Chinese imports.&nbsp; 
 
&quot;My input cost is 40 per cent higher than other nations. How will my finished product compete?&quot; Pankaj Chaddha, CEO of Jyoti Steel Industries, said of the MIP tariffs.&nbsp; 
 
Jyoti Steel, a Mumbai manufacturer of stainless steel wire and carbon steel bright bars, cut 50 of its 300 jobs after MIP was introduced, and its output slumped by 22 per cent in the April-June quarter.&nbsp; 
 
Chaddha said he would have to lay off another 50 contract workers if the policy was extended past its August 5 expiry date. 
 
Also hanging over India&#39;s steel sector is a separate recommendation that the government enact anti-dumping duties on imports of hot-rolled steel products from China, Japan, South Korea, Russia, Brazil and Indonesia. 
 
 
Cold-roll steel mills shut down 
 
Indian prices of hot-rolled steel, used to make pipes, rods, cars, ships and industrial machinery, rose by more than 15 per cent to 37,000 rupees ($554) a tonne between December and early May, according to the latest data available. 
 
Chinese prices moved from $270 a tonne in December to $420 a tonne in April, before softening again.&nbsp; 
 
Trade body EEPC India said engineering goods exports would drop 10 per cent this year if MIP is extended. The group has gone before the trade ministry several times to ask that the import policy be allowed to lapse, and members have also met with the steel ministry on the issue.&nbsp; 
 
India&#39;s indebted steel sector, though, struggling with low profit amid a global supply glut, has lobbied hard for it to be kept in place.&nbsp;By making foreign steel too expensive, domestic steelmakers such as Steel Authority of India, Tata Steel and JSW Steel have been able to raise prices.&nbsp; 
 
But higher prices, besides hampering exporters, have pushed steel processing firms such as Adhunik Metaliks, Jayaswal Neco and Sujana Metal Products into losses.&nbsp; 
 
About 20 of 60 mills on his membership list have shut, said SC Mathur, executive director of Cold Rolled Steel Manufacturers Association of India. 
 
&quot;Others are operating at 40-50 per cent of capacity and incurring losses.&quot;&nbsp; 
 
 
Not just India vs China 
 
China, the world&#39;s largest steel manufacturer and consumer, produced 804 million tonnes last year, about half of global supply, using just 70 per cent of its capacity.&nbsp; 
 
India, along with the United States, Europe and others, has said that even as Beijing works to downsize its overblown sector, Chinese mills are exporting their excess supply. 
 
India, the world&#39;s third-largest producer with an estimated output of 90 million tonnes, consumed about 80 million tonnes of finished steel in the year through March 2016.&nbsp;It imported about 11 million tonnes that year, according to the steel ministry&#39;s Joint Plant Committee (JPC), with China supplying around 47 per cent.&nbsp; 
 
(Reuters)

A price policy to protect Indian markets from cheap imports are affecting cold-roll steel mills

Indian manufacturers of finished steel goods are urging New Delhi to end tariffs on cheap imports of the alloy from China, Japan and South Korea, worried the protectionist measures may cost them billions in lost overseas sales. India put the tariffs in place in February to ensure a minimum import price (MIP) for 173 steel products, mainly to guard against cheap Chinese exports of around 10 million tonnes a month of items such as hot-rolled and cold-rolled steel that have undercut US European and Asian producers. The gambit to protect India's domestic steelmakers is threatening export revenues earned by engineering and manufacturing companies as artificially high prices for a primary raw material for everything from home appliances to ships make their products uncompetitive in foreign markets. The MIP policy has hit engineering firms especially hard. These mostly small- to mid-sized companies together export goods worth $56 billion a year, a fifth of India's shipped merchandise, made at least partly with steel now priced 15 per cent higher on average than at end-2015 and up to 30 per cent more than Chinese imports. "My input cost is 40 per cent higher than other nations. How will my finished product compete?" Pankaj Chaddha, CEO of Jyoti Steel Industries, said of the MIP tariffs. Jyoti Steel, a Mumbai manufacturer of stainless steel wire and carbon steel bright bars, cut 50 of its 300 jobs after MIP was introduced, and its output slumped by 22 per cent in the April-June quarter. Chaddha said he would have to lay off another 50 contract workers if the policy was extended past its August 5 expiry date. Also hanging over India's steel sector is a separate recommendation that the government enact anti-dumping duties on imports of hot-rolled steel products from China, Japan, South Korea, Russia, Brazil and Indonesia. Cold-roll steel mills shut down Indian prices of hot-rolled steel, used to make pipes, rods, cars, ships and industrial machinery, rose by more than 15 per cent to 37,000 rupees ($554) a tonne between December and early May, according to the latest data available. Chinese prices moved from $270 a tonne in December to $420 a tonne in April, before softening again. Trade body EEPC India said engineering goods exports would drop 10 per cent this year if MIP is extended. The group has gone before the trade ministry several times to ask that the import policy be allowed to lapse, and members have also met with the steel ministry on the issue. India's indebted steel sector, though, struggling with low profit amid a global supply glut, has lobbied hard for it to be kept in place. By making foreign steel too expensive, domestic steelmakers such as Steel Authority of India, Tata Steel and JSW Steel have been able to raise prices. But higher prices, besides hampering exporters, have pushed steel processing firms such as Adhunik Metaliks, Jayaswal Neco and Sujana Metal Products into losses. About 20 of 60 mills on his membership list have shut, said SC Mathur, executive director of Cold Rolled Steel Manufacturers Association of India. "Others are operating at 40-50 per cent of capacity and incurring losses." Not just India vs China China, the world's largest steel manufacturer and consumer, produced 804 million tonnes last year, about half of global supply, using just 70 per cent of its capacity. India, along with the United States, Europe and others, has said that even as Beijing works to downsize its overblown sector, Chinese mills are exporting their excess supply. India, the world's third-largest producer with an estimated output of 90 million tonnes, consumed about 80 million tonnes of finished steel in the year through March 2016. It imported about 11 million tonnes that year, according to the steel ministry's Joint Plant Committee (JPC), with China supplying around 47 per cent. (Reuters)

India's anti-China steel tariffs harm engineering, manufacturing firms

For many coal miners in Indonesia&#39;s resource-dependent economy, a surprise shift in India&#39;s coal industry from big importer to potential exporter could not have come at a worse time. 
 
Prices have slumped over the past five years and a slowing China is buying less. Now, Indonesia faces an Indian double whammy: not only is its main export market producing so much coal that it aims to wind down imports in two years, it&#39;s also set to start exporting for the first time to a market dominated by Indonesia. 
 
State-run Coal India is opening mines at the rate of one a month and expanding existing ones, as Prime Minister Narendra Modi fast-tracks environmental clearances to double output this decade and meet election promises to provide power to a population of 1.3 billion. 
 
That dash for production has left Coal India with a stockpile of more than 50 million tonnes of mined coal, but domestic demand is rising more slowly than anticipated, prompting it to start talks to export to neighbouring Bangladesh. 
 
Not so long ago, Indonesian coal executives brushed aside concerns about slowing sales to China, citing strong Indian demand - suggesting they have underestimated India&#39;s ability to quickly ramp up production. 
 
&quot;This is a threat to the Indonesian coal industry,&quot; said Supriatna Suhala, executive director of the Indonesian Coal Mining Association (ICMA). &quot;In future, we may have to compete with India. They may become an exporter to Asia.&quot; 
 
&#39;Dire Trouble&#39; 
 
In Indonesia, the shift in Indian demand is most keenly felt among producers of low-quality coal in southern Sumatra, said Ben Lawson, chief operating officer of Sanaman Coal, which owns a small, unopened mine in the region. 
 
&quot;There&#39;s been a tonne of closures in South Sumatra and Jambi (provinces) because that was all geared towards the Indian market,&quot; he said, noting many mines producing nearby are in &quot;dire trouble&quot;. 
 
This could trigger more mine closures on top of thousands already shut across Indonesia due to weak demand and prices, piling the pressure on President Joko Widodo and an economy where coal mining accounts for around four per cent of GDP. 
 
Even larger firms such as PT Adaro Energy, Berau Coal Energy and PT Bukit Asam may have to cut jobs and output once long-term supply contracts to India expire, analysts say - though they are better placed as they have lower mining costs, investments in other businesses like power generation and are able to supply the higher grade, low-ash coal that India&#39;s coastal plants rely on. 
 
Price Pressure 
 
While Modi&#39;s manufacturing push could reboot Indian demand, current production rates and stock levels signal that India, which has the world&#39;s fourth-largest coal reserves, is likely to become an exporter of thermal coal for power generation. 
 
A switch by such a big buyer will keep the pressure on world thermal coal prices, which have picked up from decade lows in January but are still well below where they were five years ago. 
 
Anil Swarup, the top civil servant in India&#39;s coal ministry, acknowledged the country&#39;s low-quality coal could be a tough sell, particularly as higher grades are available at such low prices. Nevertheless, he said Coal India was in talks with Bangladesh over price and the quality of coal to be sold, and he hoped to &quot;see some action on the ground in three months&quot;. 
 
Electricity-starved Bangladesh buys only around three million tonnes of coal a year, but consultancy Wood Mackenzie predicts demand could jump to as much as 15 million tonnes by 2020 as planned power plants worth at least $8 billion are built there with help from India and China. 
 
Spoilt for Choice 
 
India&#39;s declining appetite for Indonesian coal is partly a result of low prices that have made higher calorific value coal available elsewhere more affordable. 
 
&quot;It&#39;s impacting all the major export markets because now the Indians are not at a loss for choice, and you can see that from month-to-month they just skip around from South Africa to Indonesia,&quot; said Lawson at Sanaman Coal. 
 
Imports by India&#39;s coastal power plants, which are designed to use only high-grade imported coal, rose around three per cent to 43.5 million tonnes in the year to end-March, according to mjunction, an online trading platform. 
 
Overall, India&#39;s January-May coal imports fell 5.4 per cent to 82.57 million tonnes, according to vessel-tracking data compiled by Thomson Reuters. Though Indonesia remained the top supplier, its sales to India fell by a fifth to 36.72 million tonnes, while shipments from South Africa increased by more than a quarter to 16.58 million tonnes. 
 
Indonesia is now tapping other existing export markets, from South Korea and Taiwan to Japan, and may also target countries that don&#39;t have large coal resources, such as Malaysia, the Philippines, Bangladesh, Pakistan and Vietnam. 
 
It has also capped its production at 400 million tonnes and is fast-tracking power plant developments to use more domestic coal, said Suhala at the ICMA. 
 
&quot;Indian demand, the great saviour from falling China demand, has turned out to be largely fictional,&quot; said Hans Lukiman, a small-scale Indonesian coal miner. 
 
(Reuters)

Not only is India buying less Indonesian coal, it's producing so much that its exports are cutting into Indonesia's market

For many coal miners in Indonesia's resource-dependent economy, a surprise shift in India's coal industry from big importer to potential exporter could not have come at a worse time. Prices have slumped over the past five years and a slowing China is buying less. Now, Indonesia faces an Indian double whammy: not only is its main export market producing so much coal that it aims to wind down imports in two years, it's also set to start exporting for the first time to a market dominated by Indonesia. State-run Coal India is opening mines at the rate of one a month and expanding existing ones, as Prime Minister Narendra Modi fast-tracks environmental clearances to double output this decade and meet election promises to provide power to a population of 1.3 billion. That dash for production has left Coal India with a stockpile of more than 50 million tonnes of mined coal, but domestic demand is rising more slowly than anticipated, prompting it to start talks to export to neighbouring Bangladesh. Not so long ago, Indonesian coal executives brushed aside concerns about slowing sales to China, citing strong Indian demand - suggesting they have underestimated India's ability to quickly ramp up production. "This is a threat to the Indonesian coal industry," said Supriatna Suhala, executive director of the Indonesian Coal Mining Association (ICMA). "In future, we may have to compete with India. They may become an exporter to Asia." 'Dire Trouble' In Indonesia, the shift in Indian demand is most keenly felt among producers of low-quality coal in southern Sumatra, said Ben Lawson, chief operating officer of Sanaman Coal, which owns a small, unopened mine in the region. "There's been a tonne of closures in South Sumatra and Jambi (provinces) because that was all geared towards the Indian market," he said, noting many mines producing nearby are in "dire trouble". This could trigger more mine closures on top of thousands already shut across Indonesia due to weak demand and prices, piling the pressure on President Joko Widodo and an economy where coal mining accounts for around four per cent of GDP. Even larger firms such as PT Adaro Energy, Berau Coal Energy and PT Bukit Asam may have to cut jobs and output once long-term supply contracts to India expire, analysts say - though they are better placed as they have lower mining costs, investments in other businesses like power generation and are able to supply the higher grade, low-ash coal that India's coastal plants rely on. Price Pressure While Modi's manufacturing push could reboot Indian demand, current production rates and stock levels signal that India, which has the world's fourth-largest coal reserves, is likely to become an exporter of thermal coal for power generation. A switch by such a big buyer will keep the pressure on world thermal coal prices, which have picked up from decade lows in January but are still well below where they were five years ago. Anil Swarup, the top civil servant in India's coal ministry, acknowledged the country's low-quality coal could be a tough sell, particularly as higher grades are available at such low prices. Nevertheless, he said Coal India was in talks with Bangladesh over price and the quality of coal to be sold, and he hoped to "see some action on the ground in three months". Electricity-starved Bangladesh buys only around three million tonnes of coal a year, but consultancy Wood Mackenzie predicts demand could jump to as much as 15 million tonnes by 2020 as planned power plants worth at least $8 billion are built there with help from India and China. Spoilt for Choice India's declining appetite for Indonesian coal is partly a result of low prices that have made higher calorific value coal available elsewhere more affordable. "It's impacting all the major export markets because now the Indians are not at a loss for choice, and you can see that from month-to-month they just skip around from South Africa to Indonesia," said Lawson at Sanaman Coal. Imports by India's coastal power plants, which are designed to use only high-grade imported coal, rose around three per cent to 43.5 million tonnes in the year to end-March, according to mjunction, an online trading platform. Overall, India's January-May coal imports fell 5.4 per cent to 82.57 million tonnes, according to vessel-tracking data compiled by Thomson Reuters. Though Indonesia remained the top supplier, its sales to India fell by a fifth to 36.72 million tonnes, while shipments from South Africa increased by more than a quarter to 16.58 million tonnes. Indonesia is now tapping other existing export markets, from South Korea and Taiwan to Japan, and may also target countries that don't have large coal resources, such as Malaysia, the Philippines, Bangladesh, Pakistan and Vietnam. It has also capped its production at 400 million tonnes and is fast-tracking power plant developments to use more domestic coal, said Suhala at the ICMA. "Indian demand, the great saviour from falling China demand, has turned out to be largely fictional," said Hans Lukiman, a small-scale Indonesian coal miner. (Reuters)

India's coal shift a double whammy for Indonesian exporters

A sustained government spending on infrastructure like roads, railways, power and housing will propel India into the league of top global steel consuming nations in the next 10 years, said&nbsp;a top official of domestic steel giant SAIL&nbsp;. 
 
&quot;If you look at the massive infrastructure push by the government, even going by conservative estimates, steel demand will grow a lot. India will equal the global per capita consumption&nbsp;in 10 years,&quot; SAIL Chairman P K Singh told PTI. 
 
Per capita steel consumption in India, the world&#39;s third largest producer of the metal, stood at 59.4 kg per person in 2014, against a global average of 216.6 kg, data from industry body World Steel Association showed. 
 
The chief of India&#39;s largest steel producer added the country is at a &quot;take-off stage&quot; and all the &quot;requisite ingredients&quot; are in place, only a little push from the government was needed, which is now on its way. 
 
&quot;Look at the road sector, more highways are being built, which means more steel will be used. Similarly, in Railways more tracks are to be laid and we expect a huge jump in spending there. Power sector is also expanding, which again will boost demand for the metal,&quot; Singh said. 
 
According to him, the government&#39;s &#39;Housing for all&#39; is a novel initiative that will give impetus to steel demand. In automobiles, too, demand is rising for commercial vehicles as well as passenger cars which will further aid steel sector. 
 
According to a report by the Working Group on Steel for the 12th Five Year Plan period, the potential of raising per capita steel consumption in India is being supported by several factors. 
 
An estimated infrastructure investment of USD 1 trillion, projected growth in manufacturing at 11-12 per cent, rise in urban population, emergence of rural market for steel buoyed by projects such as Bharat Nirman, Pradhan Mantri Gram Sadak Yojana are prominent ones among them, it had said. 
 
Singh, however, cautioned against the rising overcapacity in steel across the globe, especially in China. 
 
&quot;We have to be cautious about the excess capacity in the world and in China. Some countries are dumping their products in India at cheaper rates and adversely impacting the health of domestic producers. Steel industry is of strategic importance and is the barometer of growth,&quot; he said. 
 
India is the &quot;only growth area&quot; globally and everyone is trying to get a &quot;share of this pie&quot;, Singh said adding that government needs to watch out for dumping of steel products so that domestic firms can participate with full vigour in the &#39;Make in India&#39; programme. 
 
He welcomed the imposition of a provisional minimum import price (MIP) on 173 steel products and hoped that government will continue with it beyond August, when it expires. 
 
As per government data, steel imports declined by 41 per cent to 0.546 million tonnes (MT) in May this year compared to the year-ago period. This was triggered by MIP and other measures like safeguard and anti-dumping duty. 
 
In April too, steel imports were down 15.5 per cent year- on-year at 0.654 MT 
 
(PTI)

Per capita steel consumption in India, the world's third largest producer of the metal, stood at 59.4 kg per person in 2014

A sustained government spending on infrastructure like roads, railways, power and housing will propel India into the league of top global steel consuming nations in the next 10 years, said a top official of domestic steel giant SAIL . "If you look at the massive infrastructure push by the government, even going by conservative estimates, steel demand will grow a lot. India will equal the global per capita consumption in 10 years," SAIL Chairman P K Singh told PTI. Per capita steel consumption in India, the world's third largest producer of the metal, stood at 59.4 kg per person in 2014, against a global average of 216.6 kg, data from industry body World Steel Association showed. The chief of India's largest steel producer added the country is at a "take-off stage" and all the "requisite ingredients" are in place, only a little push from the government was needed, which is now on its way. "Look at the road sector, more highways are being built, which means more steel will be used. Similarly, in Railways more tracks are to be laid and we expect a huge jump in spending there. Power sector is also expanding, which again will boost demand for the metal," Singh said. According to him, the government's 'Housing for all' is a novel initiative that will give impetus to steel demand. In automobiles, too, demand is rising for commercial vehicles as well as passenger cars which will further aid steel sector. According to a report by the Working Group on Steel for the 12th Five Year Plan period, the potential of raising per capita steel consumption in India is being supported by several factors. An estimated infrastructure investment of USD 1 trillion, projected growth in manufacturing at 11-12 per cent, rise in urban population, emergence of rural market for steel buoyed by projects such as Bharat Nirman, Pradhan Mantri Gram Sadak Yojana are prominent ones among them, it had said. Singh, however, cautioned against the rising overcapacity in steel across the globe, especially in China. "We have to be cautious about the excess capacity in the world and in China. Some countries are dumping their products in India at cheaper rates and adversely impacting the health of domestic producers. Steel industry is of strategic importance and is the barometer of growth," he said. India is the "only growth area" globally and everyone is trying to get a "share of this pie", Singh said adding that government needs to watch out for dumping of steel products so that domestic firms can participate with full vigour in the 'Make in India' programme. He welcomed the imposition of a provisional minimum import price (MIP) on 173 steel products and hoped that government will continue with it beyond August, when it expires. As per government data, steel imports declined by 41 per cent to 0.546 million tonnes (MT) in May this year compared to the year-ago period. This was triggered by MIP and other measures like safeguard and anti-dumping duty. In April too, steel imports were down 15.5 per cent year- on-year at 0.654 MT (PTI)

India to equal world per capita steel consumption in 10 years

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