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Panel to monitor any import surge from China, Vietnam

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Panel to monitor any import surge from China, Vietnam

NEW DELHI: Amid fears of trade diversion from China, Vietnam and other Asian countries, govt has stepped up the vigil to monitor any surge in imports after Donald Trump’s announcement of reciprocal tariffs.
An inter-ministerial group, comprising senior officers from the departments of commerce, revenue and industry, has been set up to keep tabs, particularly on consumer goods. There are fears that segments, such as electronics, chemicals and steel, may see a surge in cheap and subsidised imports from China.
The import monitoring group will also rope in officials from other ministries and get assessments from trade bodies as well, seeking to stay ahead of the curve, amid a turmoil in global trade.
“The idea is to observe these imports and see if any measures need to be taken. It will look at all the data points closely, including shipments coming from air and sea routes. While intense watch is required, volatility in imports is normal,” a senior govt official said. The official indicated that there will be a thorough analysis of data before any action is taken.
But, it is unlikely that data will be able to capture the trends for next two-to-three months, given that businesses are still adjusting to the new reality and assessing how the situation plays out.
In any case the process for initiating anti-dumping or safeguard action requires govt agencies to follow stipulated process, which can take a few months. Govt, however, has other tools, such as the customs risk assessment mechanism, to deal with suspicious trades.
Meanwhile, an agency report said govt is also stepping up efforts to help exporters explore new markets. The commerce department is fast-tracking formulation of its export promotion mission to support exporters in areas such as, providing credit at affordable rates; and negotiations of proposed free trade agreements with the European Union, Oman, New Zealand and the UK.
Officials have been directed to hold a series of bilateral meetings with identified 20 countries, such as Australia, Brazil, China, and France for pushing exports.





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