Cloud over india china trade may now Blow over

NEW DELHI: With tension in Doklam de-escalating, the rising temperature over trade may also cool down, although the government is unlikely to hesitate to use the security clause to check the advancement of Chinese goods into the Indian market in future.
Despite having the flexibility to restrict imports on security, safety or environmental concerns, India has refrained from using the clause in agreements of the World Trade Organisation (WTO). But the government certainly toyed with the idea of checking the entry of made-in-China power and telecom equipment besides mulling ways to curb use of Chinese mobile phones.
"It is permitted and countries realise that it can be used in case tension persists. We can't allow our networks to be compromised," said a source.
The government, however, refused to comment. The Chinese government had strongly reacted after the Centre released data to show the number of trade defence measures against cheap Chinese imports. Traditionally, Chinese goods have faced the maximum anti-dumping actions in the country.
India runs a massive trade deficit with China mostly due to the import of power equipment, electrical machinery, electronic goods, chemicals and plastics. During 2016-17, bilateral trade was estimated at over $71 billion, with the deficit pegged at $51 billion.
China accounted for nearly 16% of India's imports estimated at $384 billion. While it may seem prudent to check imports, there are threats too. For instance, Indian pharmaceuticals rely hugely on imported chemicals and if China hits pause, supply of essential medicines may suffer, warn experts.

For India, which is seeking investments to improve infrastructure and develop a world-class manufacturing base, investment by Chinese firms is also essential. In fact, it was part of the NDA government's strategy to court Chinese investors. Already, some large investments have been made in Indian startups and the engagement will only increase as it can also counter the rising trade deficit.

Exports Imports India & China 

India 10th largest trading partner of Australia, can grow further'

Though Australia-India economic ties have grown significantly in the last decade, there is scope for further growth, Australian High Commissioner to India Harinder Sidhu said on Monday.

India is Australia's 10th largest trading partner, with two-way trade valued at A$21 billion and two-way investment valued at A$24 billion in 2015-16. India is Australia's sixth largest export market, comprising nearly A$15 billion in goods and services.

"Even though these are very significant figures, more can be done to increase exports and attract foreign investment in both directions as India takes a more active approach to engaging with the global marketplace," Sidhu said in a statement issued by the Australian High Commission ahead of the visit of Australian Minister for Trade, Tourism and Investment Steven Ciobo, who will be leading a delegation of over 170 Australian businesses for Australian Business Week India (ABWI) to be held from August 28 to September 1 across New Delhi, Mumbai, Kolkata, Bhopal, Bengaluru and Hyderabad.

According to the statement, Australia is committed to exploring ways to expand its engagement even further and it is making practical efforts to help Australian businesses develop personal connections with Indian counterparts in business and government.

ABWI is designed to grow commercial links and highlight Australian capability in a range of industries including agribusiness and food, higher education and research, smart cities and infrastructure, innovation and resources and mining technology and services.

"ABWI 2017 builds on an earlier business mission to India, ABWI 2015, which delivered 20 significant deals worth millions of dollars," the statement said. "Moreover, it comes at a crucial time for Australia's blossoming commercial relationship with India."
The Australia-India CEO Forum will also be held alongside ABWI on August 29.

"A Prime Ministerial initiative, the Forum will bring together business leaders from many key sectors. The Forum will present both governments' recommendations to enhance economic linkages," the statement said.

Australia to help India become a pulses-processing hub

Australia is learnt to be exploring ways to help India transform into a 'pulses-processing hub'. Towards this objective, the Australian government and that country’s agri-business companies will hold talks with the Government of India and Indian companies including those into processing, retail and imports of pulses, on the sidelines of the 'Australia Business Week in India' (ABWI), sources close to the development told The Hindu.
The ABWI is slated to be held from August 28 to September 1 with an aim to “promote Australian capability and expand Australia’s trade, investment and education relationships.” During the event, Australian agri-business firms will be given the latest information regarding the Indian pulses market including the trends in demand. They will also be provided the details of opportunities available in India that Australian firms can take advantage of using their expertise in food grain production and processing as well as in methods to improve productivity, nutritional value and packaging. The idea also is to attract Australian investments into India in processing of these items.
The ABWI is likely to see the participation of Grain Growers (a ‘grain farmer representative organisation with 17,500 members across Australia’), Grain Trade Australia (an organization aiming to ‘ensure efficient facilitation of commercial activities across the grain supply chain’), GrainCorp Limited (a ‘listed public company with business in production, storage and processing of grain and related commodities, as well as providing logistics, testing and marketing services for these commodities’), Southern Cross Agricultural Exports (which ‘certifies sustainably grown agricultural produce and processing plants’) and Special One Grain (‘an Australian grain marketer major’).
The Indian agriculture and farmers welfare ministry had informed Parliament in February that production of pulses in the country was affected in 2014-15 and 2015-16 due to drought. It said the major initiatives undertaken for increasing pulses production include increased allocation of funds from total allocation of 'National Food Security Mission' (NFSM) for 'NFSM-Pulses', as well as ensuring additional area coverage under cultivation of pulses and creation of pulses seed hubs. The ministry informed Parliament in July that "150 pulses seed hubs" have been "established" to produce quality seeds of important pulse crops, as per a government statement. Also, production of additional quantity of breeder seed of different pulses was undertaken to attain self-sufficiency in pulses, it stated. According to an April 2016 report by International Crops Research Institute for the Semi-Arid Tropics (or ICRISAT -- an international non-profit body doing scientific research for development), “India is the largest producer (18.2 million tons), consumer (over 22 million tons) and importer (3-5 million tons per year) of pulses. The current initiative is an effort to bridge this gap.” It further said, “The target set for (pulses) production is 23.5 million tons by 2020 and 27.5 million tons by 2025, while the target for average yield has been set at 900 kg per ha by 2020 and 1,000 kg per ha by 2025 against the current average yield of 750 kg per ha. The area under pulse crops is targeted to reach 26 million ha by 2020 and 27.5 million ha by 2025, against the current area of 24 million ha.”

Trade hails ban on gold imports from South Korea

MUMBAI: Trade bodies such as India Bullion & Jewellers Association (IBJA) and Association of Gold Refineries and Mints (AGRM) hailed the "timely "action taken by the government in banning all duty free gold and silver imports from South Korea, which they allege was distorting the market. But, they are concerned about traders shifting such imports from South Korea to other nations like Indonesia, with which India has signed free trade agreements. Such FTAs facilitate imports and exports at at concessional or nil duty.
"The ban on gold imports from South Korea has happened faster than we expected and is most welcome , " said Surendra Mehta, national secretary, IBJA. " We hope, though, that traders don't misuse FTAs with other countries to recommence such imports."

India has signed a Comprehensive Economic Partnership Agreement with South Korea which allows each country to import or export their goods at concessional or nil duty , and thereby promote trade.But, much of what was being imported from South Korea recently was gold bullion , trade bodies allege, in the guise of coins, medallions and ornaments at zero duty. This was distorting trade as bullion imports from elsewhere attract 10% import duty.

Asked whether such a restriction would be extended to ASEAN nations such as Indonesia, Thailand or Malaysia with which India has signed FTAs, Rajesh Khosla, president, AGRM, said that he believed the government would deal " likewise " with imports from other FTA partners.

Khosla through AGRM had appealed to the government to curb duty free gold imports from South Korea as they were " distorting" the market. He said that from July 1 through August 18, 21 tonnes of gold coins, articles and medallions were imported duty free from South Korea. Though such imports at zero duty themselves were not illegal, the misuse took place as certain traders began melting coins and jewellery into bullion, against the rules of the CEPA that goods should not change their form.
Last year the government imposed a Countervailing duty of 12.5% on gold article and coin imports from FTA destinations to curb misuse by traders who converted them into bullion for a neat arbitrage against duty- levied gold at 10% . However, after GST was introduced from July 1, such imports recommenced from South Korea as Excise along with VAT was subsumed in GST. The importers had only to pay 3% IGST on gold, which was recovered from the customer.

U.S. sells soybeans to China, Egypt buys soyoil

Aug 24 (Reuters) - Snapshot of the global export markets for grains, oilseeds and edible oils as reported by government and private sources as of the end of business on Thursday:
SOYBEAN SALE: The U.S. Department of Agriculture said private exporters sold 132,000 tonnes of U.S. soybeans to China for delivery during the 2017/18 marketing year that begins Sept. 1, 2017.
SOYOIL PURCHASE: Egypt's state buyer GASC said it bought 35,000 tonnes of soyoil in a tender. It made the purchase in Egyptian pounds. GASC also tendered for sunflower oil but said it did not buy any.
CORN PURCHASE: South Korea's Major Feedmill Group (MFG) purchased about 60,000 tonnes of corn to be sourced from optional origins in an international tender for up to 70,000 tonnes which closed on Wednesday, European traders said. The corn was bought at about $184.60 a tonne c&f plus a $1.20 a tonne surcharge for additional port unloading. The seller was trading house C.J. International, they said.
SOYMEAL TENDER: Iranian state-owned animal feed importer SLAL issued an international tender to purchase about 200,000 tonnes of soymeal, European traders said. Offers in the tender must be submitted on Oct. 2. The soymeal can be sourced from Argentina or Brazil only and prices must be submitted in euros.
COPRA MEAL PURCHASE: South Korea's largest feedmaker Nonghyup Feed Inc. (NOFI) rejected offers and made no purchase in a tender for 12,000 tonnes of rapeseed animal feed meal, 12,000 tonnes of canola meal and 12,000 tonnes of palm kernel meal, European traders said. But NOFI did buy 6,000 tonnes of copra feed meal also sought in the tender at $156 a tonne c&f plus a $1.50 a tonne surcharge for additional port unloading, they said.
WHEAT PURCHASE: Iraq's state grains board bought 50,000 tonnes of wheat to be sourced from the United States and 50,000 tonnes from Australia in an international tender, European traders said. The tender had sought wheat sourced only from the United States or Australia. The U.S. wheat was all purchased at $297 a tonne c&f free out and the Australian wheat was bought at $298.77 a tonne free out, the traders said.
WHEAT PURCHASE: Japan's Ministry of Agriculture bought a total of 133,791 tonnes of food-quality wheat from the United States and Canada in a regular tender that closed late on Thursday.
WHEAT TENDER: Tunisia's state grains agency issued an international tender to purchase 167,000 tonnes of soft milling wheat, European traders said. The origin was optional and the tender deadline is Aug. 25, they said.
WHEAT TENDER: Jordan's state grains buyer issued an international tender to purchase 100,000 tonnes of hard milling wheat which can be sourced from optional origins, European traders said. The tender closes on Sept. 6. A new tender had been expected after Jordan bought just 50,000 tonnes in a tender for 100,000 tonnes on Wednesday.
WHEAT TENDER: The Ethiopian government issued an international tender to buy about 70,000 tonnes of milling wheat, European traders said. The tender deadline is Sept. 7. Origin is optional and shipment is sought around a month after contract signing.
BARLEY TENDER PASSED: Jordan's state grain buyer made no purchase in an international tender for 100,000 tonnes of feed barley which closed on Thursday, European traders said. A new barley tender is expected to be issued in coming days closing on Sept. 7, they said. Only two trading companies were said to have participated in Thursday's barley tender.
RICE TENDER: Bangladesh's state grains buyer issued another international tender to purchase 50,000 tonnes of rice, traders said, stepping up the country's rice import program. The tender deadline is Sept. 12. The latest tender on Thursday sought non-basmati parboiled rice with offers to be made in CIF liner-out terms, including cost, insurance, freight and ship unloading costs.
PENDING TENDERS:
FEED WHEAT AND BARLEY TENDER UPDATE: Japan's Ministry of Agriculture said it received no offers for feed-quality wheat or barley in a simultaneous buy and sell (SBS) auction that closed late on Wednesday. The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley to be loaded by Nov. 30 and arrive in Japan by Jan. 31, 2018, in the tender that is usually conducted weekly. It is seeking the same amounts for each grain in a similar tender that will be held on Aug. 30.
WHEAT TENDER: Algeria's state grains agency OAIC issued an international tender to buy milling wheat to be sourced from optional origins, European traders said. The tender sought a nominal 50,000 tonnes but Algeria often buys considerably more in its tenders than the nominal volume sought. Tender deadline is Aug. 24.
RICE TENDER: Mauritius' state purchasing agency issued an international tender to buy up to 6,000 tonnes of long grain white rice sourced from optional origins, European traders said. The rice was sought for delivery between Oct. 1 to Dec. 31 in shipping containers. Tender deadline is Aug. 24.
RICE TENDER: Iraq's state grain buyer issued an international tender to buy 30,000 tonnes of rice, a government source said. The deadline for offers is Aug. 27 and rice is being sought from all origins, the source said. Offers should remain valid until Aug. 31.
FEED BARLEY, CORN TENDER: Iranian state-owned animal feed importer SLAL issued two international tenders to buy up to 200,000 tonnes of feed barley and 200,000 tonnes of corn, European traders said. The tenders close on Sept. 11.