Some industry associations including those relating to steel have expressed concerns on imports under bilateral free trade agreements with Japan, Korea and ASEAN. However, steel imports from these countries include high grade steel, which are not manufactured domestically.

The volume of trade, including both exports and imports with these countries has increased since the signing of the bilateral trade agreements. Notwithstanding a slight increase in trade deficit, the domestic industry has benefited from the trade agreements due to cheaper import of raw materials and intermediates from these countries for stimulating value added domestic manufacturing. The trade agreements have adequate trade remedial provisions for dealing with certain surges in imports that might threaten domestic industry.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha.

 

Trade Remedial Provisions provide mechanisms to address import surges while trade agreements lower input costs for domestic manufacturers. Trade agreements with Japan, Korea and ASEAN have expanded trade and include trade remedial provisions to address import surges. Imports include high grade steel not produced domestically, while cheaper raw materials and intermediates from partner countries have supported value added domestic manufacturing despite a modest rise in the trade deficit, as reported by the Minister of State for Commerce and Industry.