Trade truce spinoffs
India expects the US-China trade deal to spur global demand and boost shipments from the country.
However, analysts have raised concerns over increased imports by Beijing after the deal that could restrict Indian exports to China
“Some of the features of the deal such as China’s adherence to IPR and patent, no competitive currency management and removal of foreign equity limits in many sectors will benefit all partners countries, including India,” Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations, told The Telegraph.
“However, as China has agreed to import additional US goods and services worth $200 billion in calendar year 2020 and 2021 , it may come at the cost of other countries’ exports to China. We have to evaluate its impact on chemicals, pharma, iron and steel, cotton, marine products and rice which figure on the list of products.”
But what needs to be seen is the implementation of the deal in its letter and spirit, which can have a positive impact. “Yes, it will help in boosting growth in global trade and removing uncertainties, provided the implementation is done in letter and spirit,” Sahai said.
India gained about $755 million in additional exports, mainly of chemicals, metals and ore, to the US in the first half of 2019 because of the trade diversion effects of Washington’s tariff war with China, a study by the UN trade and investment body has said.