TRADE UPDATE #83

The Policy Dilemma

29/08/2020

Asia-Pacific countries negotiating the Regional Comprehensive Economic Partnership (RCEP), have made significant progress. The parties have agreed to sign the deal at the RCEP Leaders Summit in November 2020. The ministers negotiating the deal, in a joint statement, said the RCEP agreement could play a significant role in the post-pandemic recovery efforts while contributing to the global economy’s growth and stability.

The leaders also reiterated that the RCEP is still open to India considering the scale and potential of its economy. Last year in November 2020, India opted out of the deal as the RCEP did not satisfactorily address the country’s concerns around its domestic industry and agriculture.

On the other hand, NITI Aayog acknowledged the role states could play in boosting India's share in global trade. Gujarat followed by Maharashtra, Tamil Nadu, Rajasthan and Odisha have topped the NITI Aayog’s Export Preparedness Index 2020. The body noted that the Atma Nirbhar Bharat package aims at pushing exports and hence, suggested that states should consider setting up dedicated export departments and focus on developing labor-intensive sectors.


BILATERAL TRADE

India waits for US response on mini trade deal of the kind signed with EU

While the US has signed a mini trade deal with the European Union to put to bed multiple contentious trade spats, the Donald Trump administration is yet to respond to India’s suggestion of signing a similar deal. Commerce ministry officials say India has confirmed its position that an early-harvest bilateral trade pact should be signed soon, to be followed up with detailed talks on a comprehensive Free Trade Agreement (FTA).


POLICY

States must set up dedicated export departments: NITI Aayog

States must set up dedicated export departments and re-look at the composition of exports with focus on labour intensive sectors, NITI Aayog vice chairman Rajiv Kumar said while reiterating that the government's Atma Nirbhar Bharat package is aimed at pushing exports while continuing with critical imports into the country.


TRADE DEALS

India Urged to Return to RCEP Trade Deal Negotiations

Asia-Pacific countries called on India afresh on Thursday to return to the negotiations on concluding the envisaged Regional Comprehensive Economic Partnership free trade pact. The 15 countries, including Japan, China and South Korea, and the 10 members of the Association of Southeast Asian Nations, held ministerial talks, in a videoconference format, for the first time in roughly two months. India was absent as it was in the last RCEP ministerial talks.


OPINION

‘India Cannot Be An Export Powerhouse Without Also Being Open On The Import Side’

With coronavirus hitting the globe, virtually every industry has borne the brunt of the pandemic with lower sales volumes and hampered revenue flow. Textile and apparel industry is no different and has also reported significant reduction in sales starting from March when the government imposed coronavirus lockdown. “Post lockdown announcement by the government of India, domestic retail sales came to a grinding halt. To add to the woes of regular garment manufacturers, international customers, who were also under lockdown, deferred orders from Indian suppliers,” according to a recent webinar by CARE Ratings on the apparel industry. However, the issues for the textile industry do not end there.


COMMODITY

Blackswan event for textile, apparels: Here’s how coronavirus affected exports, domestic sales

With coronavirus hitting the globe, virtually every industry has borne the brunt of the pandemic with lower sales volumes and hampered revenue flow. Textile and apparel industry is no different and has also reported significant reduction in sales starting from March when the government imposed coronavirus lockdown. “Post lockdown announcement by the government of India, domestic retail sales came to a grinding halt. To add to the woes of regular garment manufacturers, international customers, who were also under lockdown, deferred orders from Indian suppliers,” according to a recent webinar by CARE Ratings on the apparel industry. However, the issues for the textile industry do not end there


OTHER NEWS

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