Piyush Goyal warns against trade diversion via India by other countries
NEW DELHI : India would not lend itself to be used for transshipment of exports of countries facing high tariffs in the US as it will dent its image of a trusted trade partner, Commerce and Industry Minister Shri Piyush Goyal said Friday.
The US has imposed 145% tariffs on imports from China while for other additional tariffs are just 10%. This difference is a major disruptor of global trade flows and is prompting companies to rethink their sourcing strategies.
“At no point of time will we allow India to become a route for transshipment or breaking the rules of origin so that other countries bring material into India, do a little bit of processing and supply it to a third country,” Goyal said at the 6th India Steel International Conference.
“…wherever you see an Indian supply, you will give preference and not conveniently import your requirements to the detriment of some other Indian company or manufacturer,” Goyal said.
“It’s a wake-up call. (Just) Like you need protection from dumping, or protection from low-quality steels being imported into the country at irrational prices, you have a duty and obligation to support your supply chain. I hope this message goes down deep, not only to the steel industry, but to everybody across the country,” he said.
The minister further said that India is seeking greater market access for its steel sector through the free trade agreement (FTA) negotiations that it is engaged in.
“We are working on at least 10-12 FTAs with countries or bloc countries, like the European Union (EU), which will mean 27 countries within one block. And, in every one of them, we are working to see how we can get greater access for our cost-effective and high-quality steel sector,” Goyal added.
Apart from the EU and the US, India is negotiating trade deals with the United Kingdom (UK), New Zealand, Peru, Chile and Oman. Talks for a trade deal with Bahrain, Qatar, or the Gulf Cooperation Council (GCC) may also materialise.
