Govt sets up task force to resolve trade barrier issues for exporters

• The commerce ministry has set up a task force to identify and resolve trade barriers being faced by exporters in other countries
• A move which would help provide greater market access to domestic goods, an official said.

Key Highlights

• Many times India's exports suffer from these barriers such as time taking prior registration requirements and unreasonable domestic standards/rules in many countries.
• The ministry is also looking at improving mutual recognition agreements (MRAs) with different countries so that product standards are as per the requirements of the importing countries.
• Standards for goods and services should help in promoting global trade and not act as non-tariff barriers, the official added.
• According to a report of the economic think tank Global Trade Research Initiative (GTRI), India needs to act in a fast-track manner for removal of non-trade barriers (NTBs)
  • Being faced by domestic exporters in different countries like the US, China and Japan, to achieve one trillion dollar outbound shipment target for goods by 2030.
• It has asked for upgrading domestic systems, in cases where Indian products are rejected due to quality issues
  • And retaliating if unreasonable standards or rules continue to obstruct exports from New Delhi.
• Key Indian exports that routinely face high barriers include chillies, tea, basmati rice, milk, poultry, bovine meat, fish, chemicals products to EU
  • Sesame seed, black tiger shrimps, medicines, apparels to Japan; food, meat, fish, dairy, industrial products to China
• According to the report, the other products which face these barriers include ceramic tiles in Egypt; chili in Mexico; medicines in Argentina; microbiological reagents in Saudi Arabia
• Most non-tariff measures (NTMs) are domestic rules created by countries with an aim to protect human, animal or plant health and environment.
• NTM may be technical measures like regulations, standards, testing, certification, pre-shipment inspection or non-technical measures like quotas, import licensing, subsidies, government procurement restrictions.
• When NTMs become arbitrary, beyond scientific justification, they create hurdles for trade and are called NTBs (non-tariff barriers).

Prelims Takeaway

• Non-tariff barriers
• Global Trade Research Initiative