India, China hope for $10-billion trade
New Delhi: India and China are hopeful of of attaining a trade volume of $10 billion within the next two to three years, based on the buoyant trend witnessed recently. This was indicated at a meeting between Union commerce and industry minister Arun Jaitley and his Chinese counterpart during the recent visit of Prime Minister A B Vajpayee to China, according to an official press release.

The total trade during the first 11 months during the 2002-03 fiscal stood at $4.2 billion, up from the $2.6 billion recorded during 2001-02, as per the provisional data available from the Directorate General of Commercial Intelligence and Statistics, Kolkata. During the same period, India’s exports to China at $1.6 billion registered a growth of nearly 100 per cent to the level of $846.30 million.

During the meeting, issues of mutual interest in the field of external trade were discussed. The other issues that came up for talks included holding of the next meeting of the joint economic group, need for adopting a comprehensive approach in prescribing phyto-sanitary standards for the remaining 16 fresh fruits and vegetables — Indian mangoes having already been given phyto-sanitary clearance by Chinese authorities — and the need to explore the possibility of China importing tobacco from India as well as other farm products, including foodgrain. Views on issues of common interest to both the countries in the WTO relating to negotiations on the agreement on agriculture and the agreement on trade- related aspects of intellectual property rights were also exchanged, with both sides agreeing to cooperate on several issues of concern to the developing countries.
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Levy of customs duty: 8-digit classification system implemented
New Delhi: The proposals for introducing an eight-digit commodity classification for levying customs duty, and an appropriated real effective exchange rate coupled with lower tariffs, included in the commerce ministry’s medium term strategy (2002-07), have been implemented. Other suggestions in the strategy, such as a special focus on 220 export products, export credit, assistance to states for infrastructure development were under implementation, say commerce ministry officials. Besides, moves are on to enter into free trade agreements with South Africa, Thailand, Egypt, Iran, Bangladesh, in addition to Sri Lanka and Afghanistan, the officials further say.

The medium term export strategy (MTES) has drawn a roadmap for raising India's share in the global exports to 1 per cent by 2007, terminal year of the Tenth Five Year Plan. The officials say the switch over from a six-digit to an eight-digit customs classification had become effective from 1 February 2003. The move was designed to give sufficient leverage to New Delhi in the ongoing negotiations on market access for non-farm products under the World Trade Organisation auspices.
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