India, China sign 3 MoUs, hope to reduce deficit

India and China on Monday signed three Memorandum of Understandings (MoUs) on buffalo meat, fisheries and pharmaceuticals, and one on feed and feed ingredients.

“These MoUs are expected to address the growing trade deficit between the two countries,” a Commerce Ministry statement said.  The trade deficit has increased from $1.08 billion in 2001-02 to $40.77 billion in 2012-13. The MoUs are part of agreements entered into by the two countries during the current visit of Chinese Premier Li Keqiang to India.

Commerce Minister Anand Sharma said, “The signing of the MoUs between India and China is a good beginning to address the issues India is raising with China from time to time. All the sectors are of immense trade importance to India and India has clear price and quality competitiveness in these sectors to compete in the world market.”

An MoU for the export of buffalo meat from India to China was signed between Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and India’s Agricultural and Processed Food Products Export Development Authority (APEDA).  
With the resumption of trade, India hopes a big merchandise trade that will not only be helpful in reducing trade imbalance of India but also in China’s food security by providing quality and hygiene meat products.

The bilateral trade between India and China had gone up from $2.09 billion in 2001-02 to $75.59 billion in 2011-12. It however came down to $67.83 billion during the year 2012-13 due to global factors.

The Marine Products Export Development Authority (MPEDA) and AQSIQ signed an MoU on cooperation for import and export of fishery products. The MoU aims to institutionalise cooperation in promoting trade of fishery products. India is expecting more exports to China through this cooperation.

Another MoU was signed between Pharmaceuticals Export Promotion Council of India (Pharmexcil) and The China Chamber of Commerce for Import and Export of Medicines and Health Products. India has been finding it difficult to expand its trade with China in the pharmaceutical sector. The signing of the MoU is expected to facilitate access to Chinese pharmaceuticals market.

An agreement was also signed between Export Inspection Council of India (EIC) and AQSIQ on trade and safety of feed and feed ingredients. India hopes a big merchandise trade for feed & feed ingredients after the resumption of trade as China has suspended import of feed and feed ingredients since January 1, 2012.

The bilateral trade between India and China had gone up from $2.09 billion in 2001-02 to $75.59 billion in 2011-12. It however came down to $67.83 billion during the year 2012-13 due to global factors.