Top Banner
Sunitha Raju Sunitha Raju Professor and Chairperson Professor and Chairperson Indian Institute of Foreign Trade Indian Institute of Foreign Trade New Delhi. New Delhi. Implications of RTAs on the Implications of RTAs on the Competitiveness of Indian Competitiveness of Indian Agricultural Exports Agricultural Exports
33

Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Dec 23, 2015

Download

Documents

Bonnie Powell
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Sunitha RajuSunitha RajuProfessor and ChairpersonProfessor and Chairperson

Indian Institute of Foreign TradeIndian Institute of Foreign TradeNew Delhi.New Delhi.

Implications of RTAs on the Implications of RTAs on the Competitiveness of Indian Competitiveness of Indian

Agricultural ExportsAgricultural Exports

Page 2: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Indian Export (Mil US$)

Year 1960-61 1970-71 1980-811990-

91 2000-01 2008-09 2009-10

Agricultural and allied products 596 644 2601 6317 6256 17768 17963

Ores and minerals 109 217 523 834 906 7917 8699

Manufactured goods 610 1021 4738 13229 35181 127646 120167

Mineral fuels and lubricants 15 17 35 528 1931 27523 28800

Total 1330 1899 7897 20908 44274 180854 175629

Share of Agricultural Products in total goods export of India (%) 44.8 33.9 32.9 30.2 14.1 9.8 10.2

Source: Economic Survey, 2010-2011

Page 3: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

0

5

10

15

20

25

30

Export Import

India’s Agricultural Trade Surplus (1990-2010)

US Million $

Source: Comtrade Database

Page 4: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Structure of India and World Export

(% Share)

Category 1990 1995 2000 2006

India India India India

Primary 52.3 51.6 42.1 41.6

Semi-Processed

24.9 22.4 31.8 24.7

Processed 22.8 26 26.1 33.7

Total (million $)

3005.78

(100.0)

6234.53

(100.0)

6303.05

(100.0)

11510.1

(100.0)

Source: UN COMTRADE (WITS), HS 1988/92 classification

Page 5: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Trends in Major Agricultural Exports (As % of World Exports)

Products 1990 1995 2000 2005 2007 2009

Coffee/coffee substitute 3.1 3.1 2.3 2.3 1.9 1.9

Edible products 0.2 0.2 0.3 0.2 0.3 0.4

Fruit/nuts, fresh/dried 1.9 1.7 2.0 1.8 1.6 1.8

Milk/butter/cheese 0.0 0.0 0.1 0.6 0.5 0.5

Oil seeds/oil fruits 1.0 1.3 1.7 1.4 1.1 0.8

Rice 7.6 20.6 10.2 14.4 18.2 15.9

Spices 10.9 10.7 10.2 9.7 16.0 17.0

Sugar/molasses/honey 0.3 1.2 1.2 1.0 4.8 0.3

Tea and mate 27.6 17.6 17.4 9.6 9.0 9.9

Vegetables,frsh/chld/frz 0.6 0.8 1.3 1.7 1.3 1.8

Wheat products 0.1 0.6 0.7 0.7 0.0 0.0

Marine Products 0.3 0.7 1.3 1.2 2.1 2.0

Cashew nuts, fresh/dried 59.9 55.9 42.7 28.3 28.5 39.5

Tobacco, raw and wastes 2.5 2.3 2.7 3.4 3.8 6.7

Cotton 11.2 5.25 7.67 6.6 16.9 13.2

Source: Calculations based on SITC rev 3, UN Comtrade database

Page 6: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Direction of India’s Exports (Share %)

Partner Regions 1991 1995 2000 2002 2005 2009

Africa 1.83 1.79 3.30 5.01 7.31 8.55

America 9.08 10.80 14.26 12.84 11.42 10.19

Asia (excl. Middle East)

24.02 29.52 26.81 33.58 30.97 32.64

Middle East 15.67 14.75 13.34 14.48 15.58 14.27

Europe 25.53 24.62 24.04 18.90 18.39 18.20

Oceania 0.67 0.80 0.75 0.82 0.96 1.17

Source: India Trades, CMIE

Page 7: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Export Competitive Products

1. Share of competitive products share increasing accounted for 76.2% of export value in 2006 as against

69.3% in 2003

2. Concentration of competitive products in the following products:

meat (02), Fish (03), Edible Fruits & nuts (08), Tea & Pepper (09), Cereals (10), Oil seeds (12), Food residues (23) & Tobacco (24)

3. Competitive products share low or non existent : cut flowers, edible vegetables, sugar, dairy, preparation of cereals

These trends imply that India is able to maintain export competitiveness in primary and semi processed products

Page 8: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Sustaining Export Markets

1. Traditional markets are declining or stagnant . (Fish, Cereals Coffee, Tea and Black pepper).

2. Export markets expanding for products diversified into value added exports. (Fish, Coffee, Black Pepper, Oil Seeds and Processed Food).

3. In traditional markets, India is loosing market share to competing suppliers. China (Fish, Ground Nut, Liquour, Vegetable) Vietnam (Vegetables, Cashew Nut, Pepper) Sri Lanka (Tea) EU and USA (Tobacco Products)

Page 9: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

ASEAN-India Agricultural Trade Characteristics

Year Exports ImportsTotal Trade

(Export+ Import)Trade

BalanceExport/Import

Ratio

1. India's Trade with ASEAN

2000 880.00 1101.10 1981.10 -221.10 0.80

2003 1208.60 2264.90 3473.50 -1056.30 0.53

2006 1853.70 2040.57 3894.30 -186.90 0.91

2008 3811.09 3740.00 7552.00 71 1.02

2. ASEAN's Trade with India

2000 1296.60 832.15 2128.75 464.45 1.56

2003 1852.00 1049.35 2901.39 802.69 1.76

2006 1769.80 1623.38 3393.19 146.42 1.09

2008 1135.45 2056.14 3191.59 -920.69 0.55

Source : WITS Comtrade Database Note : Agricultural products includes HS chapter 1-24, 40 and 52

(US Mil $)

Page 10: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Export to ASEAN having Increasing Shares

(US Mill. $)

India’s Export to ASEAN India’s Export to World

Code 2000 2006 2000 2006

Dairy Products (04) 2.49 (5.39)

14.89(8.36)

46.27 178.11

Edible Vegetables (07) 29.65(11.02)

80.34(12.91)

269.09 622.35

Edible fruit (08) 8.91(1.46)

21.08(2.40)

608.54 878.45

Tea, spices and coffee(09) 23.26(2.67)

138.61(11.64)

870.84 1190.98

Oilseed (12) 82.60(24.40)

176.35(33.14)

338.58 532.20

Vegetable preparations (14) 0.25(1.35)

1.32(5.02)

18.66 26.30

Cereal preparations(19) 3.10(7.80)

12.22(9.22)

39.78 132.47

Edible Preparations(21) 6.09(4.84)

12.94(6.60)

125.89 195.96

Tobacco(24) 10.93(5.65)

56.20(15.12)

193.60 371.74

Natural Rubber (40) 41.8(11.33)

115.7(9.72)

368.7 1190

Cotton (52) 130.05(5.2)

287(7.8 )

2445.50 3916.82

Source : WITS Database Note : Figures in the brackets are ASEAN’s share in India’s export to the World

Page 11: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Major Export to ASEAN

Product Categories

Product Codes Product Description

India’s Export to ASEAN (Million $)

2003 2006

MeatProducts (02)

20210, 20220, 20230Carcasses, Bovine Animals, Fresh Or Chilled, and Others

134.95 194.74

FishProducts (03)

30374, 30379, 30613, 30614, 30624

Flat Fishes, Tunas, Livers, Mussels, Not Frozen and Others

75.02 59.56

Ediblevegetables (07)

70310, 70320Chickpeas, Beans, Cassava and Sweet Potatoes

37.89 73.68

Coffee and Tea Products (09)

90411, 90412, 90420, 90920, 90930,

90950Tea, Spices, Coffee Roasted 19.21 107.22

Cereals (10) 100510,100590, 100610, 100630Maize seed, Rice in the husk, milled rice

38.39 55.43

Oil Seeds (12) 120210, 120220, 120740Lin Seed, Palm Nuts, Mustard, Castor Oil, Seaweeds and Others

76.14 161.06

Sugar Products (17) 170111, 170191, 170199 Raw Sugar and Others 74.94 45.31

Residues and waste from the food industries (23)

230400, 230630, 230640, 230670Of Maize, Wheat, Oil Seeds, Cotton Seeds, Sunflower Seeds

306.92 560.96

Cotton (52)

520100, 520511, 520521, 520522,520523, 520524, 520541, 520548, 520710, 520790, 20811, 520821, 520831, 520911, 520942

Dyed Cotton, Bleached Cotton, Unbleached Cotton, Fabrics

110.91 267.11

Source: UNCTAD Comtrade Database

Page 12: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India's Potential Export to ASEAN

ProductGroup

Product Code(6 Digit)

ProductDescription

ASEAN Import from World

2003 2006

Fish Products (03) 030374, 030379, 030613, 030624

Frozen Fish, Crabs, Frozen Mackerel, Anchovies

613.3(11.8)

806.3(7.6)

Edible vegetables (07) 070310, 070320 Onions and Shallots, Fresh or Chilled Garlic

195.3(21.6)

401.1(16.5)

Coffee, tea and spice products (09)

090411, 090920 Dried Pepper, Seeds Of Coriander

73.6(10.1)

70.1(13.6)

Cereals (10) 100510, 100590, 100610, 100630

Maize Seed, Rice in The Husk, Milled Rice

1060.1(2.6)

1831.6(2.3)

Sugars Products (17) 170111, 170191, 170199 Raw Cane Sugar, Cane Or Beet Sugar

590.6(3.0)

1214.2(1.7)

Residues and waste from the food industries (23)

230400, 230670 Soya-Bean and Maize Residue.

1449.3(11.3)

1924.0(25.0)

Cotton Products (52) 520100, 520522, 520524, 520811, 520812, 520819, 520832, 520839, 520852, 520859, 520911, 520929

Carded or Combed Cotton, Single Yarn, Plain Wave, Other Fabrics

1711.4(0.9)

2048.4(7.5)

Source : UNCTAD Comtrade Database Note : Figures in brackets represent India’s share in total import of

ASEAN

(US Mil. $)

Page 13: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Major Imports from ASEANIndia’s Major Imports from ASEAN

Imports required to meet domestic supply deficit Imports required to meet domestic supply deficit vegetable fats, chickpeas, natural rubbervegetable fats, chickpeas, natural rubber

Imports with potential threatImports with potential threat Tea, Pepper, Turmeric & TobaccoTea, Pepper, Turmeric & Tobacco

Other rising imports (cereal & vegetable products, Other rising imports (cereal & vegetable products, cocoa)cocoa)

Page 14: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Major Import from ASEAN

Product Categories

Product Codes Product Description India’s Import from ASEAN

(000’ $ )

2003 2006

FishProducts (03)

30379, 30612, 30613, 30741, 30749

Shrimps , prawns, cut fish, Lobsters and other frozen fish

1,865.554 964.514

Products of animal origin (05) 50800, 51199 Coral and similar materials 1,291.584 186.905

Ediblevegetables (07)

71310, 71320, 71331, 71332,71333, 71339, 71390

Chickpeas, Beans and other beans 215279 456735

Edible Fruit (08) 080131 Cashew nuts :-- In shell 37009 35151

Coffee and Tea Products (09) 90111,90240, 90411, 9061090700,90810, 90820, 90910,91030

Coffee, not roasted, Other black tea, Pepper, Cloves, Nutmeg, Mace, Turmeric

43,705.014 74,089.184

Milling Products (11) 110812, 110814, 110819 Starches, Maize, Manioc, other starches

1,558.573 2,817.059

Oil Seeds (12) 120890, 120930, 120991, 121190 Seeds of herbaceous, Vegetable seeds, other

6,050.213 8,082.133

Lac and Gum (13) 130110, 130190, 130232 Lac , Vegetable saps, other 6164 22107

Vegetable Fats (15) 150710, 150790, 151110,151190,151211, 151319,151321, 151329, 151620, 152000

Crude oil, Sunflower-seed, Coconut oil, Palm kernel, Vegetable fats, Glycerol

1740406 1249590

Cocoa (18) 180100, 180400,180500,180620, 180690

Cocoa beans, Cocoa powder, Other preparations in blocks, Cocoa butter

9366 6378

Contd….

Page 15: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Major Import from ASEAN

Product Categories

Product Codes Product Description India’s Import from ASEAN

(000’ $ )

2003 2006

Cereal Preparation (19) 190110, 190300, 190530, 190590 Preparations for infant use, Tapioca, Sweet biscuits

1,029.530 3,275.702

Vegetable Preparation (20)

200410, 200799, 200919, 200940 Potatoes, Orange juice, Pineapple juice, Extracts

1,077.862 1,787.708

Miscellaneous Preparation (21)

210111, 210390, 210690 Extracts, and others 940.217 4,605.822

Residues and waste from the food industries (23)

230120, 230650, 230660, 230890 Flours, coconut or copra, Other, palm nuts

11096 17851

Tobacco (24) 240120, 240220 Cigarettes containing tobacco, Tobacco, partly or wholly stemmed

2,135.277 4,716.975

Natural Rubber (40) 400121, 400122, 400129, 400219,400220,400299,400700,400811400910, 401029, 401110

Natural Rubber, Styrene, Transmission belts, rubber used on aircraft, Gaskets, washers, Vulcanized rubber, rubber thread

51584 116684

Cotton (52) 520100 , 520299, 520829, 520833520839, 520859, 520942, 521031

Bleached, Plain weave, yarns of different colors, Printed, Unbleached

5,871.528 7,165.482

Source: UNCTAD Comtrade Database

Page 16: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Potential Import from ASEAN

Product Categories

Product Codes Product Description

India’s Import from ASEAN (000’ $ )

2003 2006

Ediblevegetables (07)

71310, 71320, 71331, 71332,71333, 71339, 71390

Chickpeas, Beans and other beans215279

(38)456735

(54)

Edible Fruit (08) 080131 Cashew nuts :-- In shell37009(13)

35151(9)

Coffee and Tea Products (09)

90111, 90240, 90411, 9061090700, 90810, 90820, 90910,91030

Coffee, not roasted, Other black tea, Pepper, Cloves, Nutmeg, Mace, Turmeric

31838(43)

74759(52)

Lac and Gum (13) 130110, 130190, 130232 Lac , Vegetable saps, other6164(34)

22107(52)

Animal Products (15)

150710, 150790, 151110,151190, 151211, 151319,151321, 151329, 151620,152000

Crude oil, Sunflower-seed, Coconut oil, Palm kernel, Vegetable fats, Glycerol

1740406(71)

1249590(55)

Cocoa (18)180100, 180400,180500, 180620, 180690

Cocoa beans, Cocoa powder, Other preparations in blocks, Cocoa butter

9366(61)

6378(23)

Residues and waste from the food industries (23)

230120, 230650, 230660, 230890

Flours, coconut or copra, Other, palm nuts11096(26)

17851(57)

Natural Rubber (40)

400121, 400122, 400129, 400219, 400220,400299,400700,400811400910, 401029, 401110

Natural Rubber, Styrene, Transmission belts, rubber used on aircraft, Gaskets, washers, Vulcanized rubber, rubber thread

51584(38)

116684(34)

Source : UNCTAD Comtrade Database

Page 17: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Duty Categories: Import Trends of the Listed Products (2000-2008)

  Normal Track 1 Normal Track 2

Sensitive List Exclusion ListsTotal

2000-04 2004-08

2000-04 2004-08

2000-04 2004-08

2000-04 2004-08

2000-04 2004-08

Indonesia 10954(13.72

)

61173(24.55)

7398 (9.27)

8942(3.59)

8330

(10.4)

11171(4.48)

53144(66.57

)

167859 (67.37)

79826

249145

Philippines 171(12.6)

1154(28.3)

114 (8.4)

394 (9.6)

- - 1072(79)

2528 (62)

1357 4076

Vietnam 3752 (40.34

)

12751(53.31)

2122(22.8

1)

1518 (6.35)

- -3428 (36.8)

9648(40.3)

9302 23917

Malaysia 20475(35.4)

25046 (32.25)

2057 (3.56)

3946 (5.08)

4856

(8.3)

7989 (10.28)

30458(52.6)

40671(52.3)

57846

77652

Thailand 29783 (50.9)

101786 (50)

4043 (6.91)

11353 (5.58)

4371

(7.4)

15787(7.7)

20301(34.7)

74633(36.7)

58498

203559

Singapore 0 (0)

0(0)

1775(11.3

6)

1354 (5.8)

7086

(46.4)

11958(51.21)

6398 (41.9)

10038(42.9)

15259

23350

Total (ASEAN) 65135 (5.03)

201910(6.5)

17509(1.35)

27507(0.89)

24643

(1.9)

46905 (1.51)

114801(52)

305377(52.5)

222088

581699

Source: UNCTAD Comtrade DatabaseNote: Figures in brackets are % share to the total imports

(000’ $)

Page 18: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Duty Categories: A Comparison of NT & Exclusion Products of ASEAN Member Countries with that of the

World Imports

Normal Track 1 & 22000-04

2004-08

Exclusion (+ Sensitive)

2000-04 2004-08

1 Indonesia 2.78 2.96 5.09 5.69

2 Vietnam 1.16 1.06 0.36 0.56

3 Malaysia 2.1 1.23 2.9 1.77

4 Thailand 3.2 4.78 2.08 3.3

5 Singapore 1.85 0.89 1.1 0.94

Total ASEAN

(US Mill. $)

93313(2.47)

227869(2.6)

138372(2.4)

349754(2.7)

Source: UNCTAD Comtrade DatabaseNote: Figures in brackets are share in world imports

(% share)

Page 19: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Duty Structure Across Product GroupsDuty Structure Across Product Groups

1.1. Tariff lines under Tariff lines under ExclusionExclusion & & SensitiveSensitive more than more than Normal TrackNormal Track

Cereals, Vegetable fats, Beverage & Spirits, Tobacco products

2.2. Tariff lines under Tariff lines under Normal Track Normal Track more than more than ExclusionExclusion & & SensitiveSensitive

Food residues, Cereal preparation, Sugar & Food residues, Cereal preparation, Sugar & confectionary, Fish preparationconfectionary, Fish preparation

3.3. Equal distribution of tariff lines under Equal distribution of tariff lines under Normal TrackNormal Track and and Exclusion & SensitiveExclusion & Sensitive

Natural rubber, Vegetable preparation, Oil seeds, Natural rubber, Vegetable preparation, Oil seeds, Edible fruits, Edible vegetablesEdible fruits, Edible vegetables

Contd…..

Page 20: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Duty Structure Across Product GroupsDuty Structure Across Product Groups

4.4. Coverage of tariff lines is more than what is being Coverage of tariff lines is more than what is being importedimported

Implicit protectionImplicit protection Vegetable fats, Fish, Dairy, Edible fruits, Natural Vegetable fats, Fish, Dairy, Edible fruits, Natural

rubber & vegetable preparationrubber & vegetable preparation

Implicit disprotectionImplicit disprotection Meat products, Meat preparation, Edible Meat products, Meat preparation, Edible

Vegetables, Cereal preparation, Food residue.Vegetables, Cereal preparation, Food residue.

Page 21: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Product-wise Potential Imports under Various Duty Categories

Country Potential Imports under NT1 Potential Imports under NT2

Potential import protection under Sensitive List

Potential import protection under Exclusion List

1 Indonesia Fish, Edible vegetables, Natural Rubber

Oilseeds, Lac & Gum Tea & Spices, Natural Rubber

Edible fruits, Tea & Spices, Vegetable fats, Food residues, Natural Rubber

2 Philippines Edible vegetables, lac & gum, and Natural Rubber

Lac & Gum, Beverages & Spirits

_ _

3 Vietnam Coffee, Tea & Spices, Beverage spirits, Food Residue & Natural Rubber

_ _ Coffee, Tea & Spices, Edible fruits, Natural Rubber

4 Malaysia Edible Vegetables, Sugar & Confectionary, Edible Preparation, Natural Rubber

Cocoa products, Beverages & spirits

Natural Rubber, Food Residues

Dairy Products, Vegetable Fats, Cocoa Products, Food Residues, Tobacco, Natural Rubber

5 Thailand Edible Vegetables, Edible Fruit, Sugar & Confectionary, Edible Preparation, Food Residue

Flowers, Oilseeds, Lac & Gum, Sugar & Confectionary, Cereal Preparation, Beverages & Spirits

Food Residues, Natural Rubber

Flowers, Milling industry, Edible preparations, Natural Rubber

6 Singapore _ Cereal preparation Beverages & Spirits

Natural Rubber Vegetable fats, coca products, Beverages & spirits, Tobacco, Natural Rubber

Source- Authors own calculations

Page 22: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Potential Import from ASEAN

Product Categories

Product Codes Product Description Share of India’s Import from ASEAN between 2006-2008 (%)

NT1 and NT 2 EL and SL Special

Ediblevegetables (07)

71310,71320,71331,71332,71333, 71339,71390

Chickpeas, Beans and other beans 99.94 0.06 -

Edible Fruit (08) 080131 Cashew nuts :-- In shell 100 - -

Coffee and Tea Products (09)

90111,90240, 90411, 9061090700,90810, 90820, 90910,91030

Coffee, not roasted, Other black tea, Pepper, Cloves, Nutmeg, Mace, Turmeric

51 7 42

Lac and Gum (13) 130110, 130190, 130232 Lac , Vegetable saps, other 57 0 43

Animal Products (15) 150710, 150790, 151110, 151190 ,151211, 151319,151321, 151329, 151620,152000

Crude oil, Sunflower-seed, Coconut oil, Palm kernel, Vegetable fats, Glycerol

- 7 93

Cocoa (18) 180100, 180400,180500,180620, 180690

Cocoa beans, Cocoa powder, Other preparations in blocks, Cocoa butter

64 36 -

Residues and waste from the food industries (23)

230120, 230650, 230660, 230890

Flours, coconut or copra, Other, palm nuts

66 34 -

Natural Rubber (40) 400121, 400122, 400129, 400219, 400220, 400299,400700,400811, 400910, 401029, 401110

Natural Rubber, Styrene, Transmission belts, rubber used on aircraft, Gaskets, washers, Vulcanized rubber, rubber thread

12 88 -

Source: - Calculation based UNCTAD Comtrade Database Note- figures in the brackets are ASEAN’s share in India’s Import from the world. Products code in Bold are Sensitive and Exclusion listed, in normal

are NT1 and NT2, and Italic are other products

Page 23: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Is There an Import ThreatIs There an Import Threat

EL & SL account for 88% import of Rubber, 34% for Food EL & SL account for 88% import of Rubber, 34% for Food residues, 36% for Cocoa products, Coffee, Tea & Spices : 43%residues, 36% for Cocoa products, Coffee, Tea & Spices : 43%

NT1 & NT 2 account for 99% of imports of Edible Vegetables NT1 & NT 2 account for 99% of imports of Edible Vegetables and Fruits.and Fruits.

Tariff reduction nominal for Coffee, Tea & Spices; Oilseeds.Tariff reduction nominal for Coffee, Tea & Spices; Oilseeds. Tariff reduction for products which do not threaten food security Tariff reduction for products which do not threaten food security

or Livelihood (Edible veg, Edible fruits, Beverages & spirits, or Livelihood (Edible veg, Edible fruits, Beverages & spirits, Sugar & Confectionery)Sugar & Confectionery)

Page 24: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

ConclusionsConclusions

1. 1. Most rising imports placed under EL. Thus, duty Most rising imports placed under EL. Thus, duty concessions have no significant impact concessions have no significant impact

2. Imports of Tea, Coffee, Spices are rising from World and 2. Imports of Tea, Coffee, Spices are rising from World and ASEAN because of Advance License scheme. Will ASEAN because of Advance License scheme. Will continue to rise in post-FTA periodcontinue to rise in post-FTA period

3. For Natural Rubber, the duty structure does not deviate 3. For Natural Rubber, the duty structure does not deviate from the existing trendsfrom the existing trends

4. With respect to Edible Oils, there is a need to take 4. With respect to Edible Oils, there is a need to take comprehensive view of imports under other FTA’s comprehensive view of imports under other FTA’s particularly ISLFTAparticularly ISLFTA

5. Export potential opportunities exist but would require 5. Export potential opportunities exist but would require developing export competitivenessdeveloping export competitiveness

Page 25: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

INDIA - SRI LANKA FTA

Page 26: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Duty Concessions under ISLFTA

Duty Concessions for Sri Lankan Exports to India

Tariff Reduction Tariff Lines Remarks

1998 2005  

100% 1351 4150  

50% 2799 0  To be made duty free from 2004

50%-Tea 5 5 50% fixed tariff concession for imports of tea from Sri Lanka (Annual maximum quota of 15 million Kilograms)

50%-Garments 233 233 Garments covering Chapters 61 & 62 while remaining in the negative list, will be given 50 percent tariff concessions on a fixed basis, subject to an annual restriction of eight million pieces, of which six million shall be extended the concession only if made of Indian fabric. On utilization of the unrestricted quota, an additional quota of 2 million pieces out of 8 million pieces is permitted. The quota level per category is increased from 1.5 million to 2 million pieces per category per year.

25%-Textiles 528 528 Concessions of Textile items restricted to 25 percent on Chapters 51-56, 58-60, & 63. Four Chapters under the Textile sector retained in the negative list (Chapters 50, 57, 61, and 62)

0% 196 196 Negative List

Contd….

Page 27: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Duty Concessions for Indian Exports to Sri Lanka

Tariff Reduction

Tariff Lines Remarks

1998 2005  

100% 319 1208  

50% 889 0  

35% 2724 2724 Subject to 70% tariff reduction in 2006, and 100% in 2008

0% 1180 1180 Negative List

Duty Concessions under ISLFTA

Source: Kelegama and Mukherji, 2007

Page 28: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

ISLFTA: Comparison of Average Agricultural Imports from Sri Lanka and

World ('000 US$)

Commodity Group 1993-94 to1999-2000

2000-2001 to2005-06

1993-94 to1999-2000

2000-2001 to2005-06

Imports from SL

Imports fromSL

Imports fromWorld

Imports from World

I. Duty Free 173.3(0.08%)

207.5(0.04%)

207741.4 490071.4

02 Meat & Edible Meat 0 0 112.5 161.4

06 Live Trees & Other Plants 0 0 4215.7 1900

07 Edible Vegetables 255 105 216825.7 460304.3

14 Vegetables Products 3.3 0 985.7 2240

II. Concessional List 12158.6(0.88%)

63338.6(1.81%)

1379944.2 3490882.8

03 Fish & Crusta Nil 56.7 5944.3 11247.1

05 Products of Animal Origin 367.1 518.6 5858.6 12201.4

08 Edible Fruits 1508 2011.4 321291.4 478380

09 Coffee, Tea, Mate & Spices 3638.6(12.5%)

24028.5(21.6%)

29207.1 111067.1

11 Products of 5 82.9 Nil 9210

12 Oilseed & Oleaginan 227.1 768.6 14800 41775.71

13 Lac, gum 665.7 1085.7 24467.1 35225.71

Contd….

Page 29: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Commodity Group 1993-94 to1999-2000

2000-2001 to2005-06

1993-94 to1999-2000

2000-2001 to2005-06

Imports from SL

Imports from SL

Imports from

World

Imports from World

15 Animal & Vegetable fats 1845.7(0.3%)

29457.14(1.5%)

666961.4 2020749

18 Cocoa & Cocoa Products 50 58.5 5521.4 14750

19 Preparations of Cereal 63.3 135.7 28324.2 19120

20 Preparation of Vegetable Products

20 11.4 1192.8 14398.57

21 Miscellaneous edible 0 51.4 50201.4 34477.1

23 Residues & wastefrom food indus.

16.6(0.06)

804.2(1.4%)

26747.1 58694.2

24 Tobacco products 40 15 3411.4 10901.43

40 Rubber Products 3360 4205.7 233877.1 445810

III. Negative List 3380(1.39%)

4247.1(0.46%)

243382.9 924494.3

22. Beverages & Spirit 28 41.4 9505.7 68210

40 Rubber Products 3360 4205.7 233877.1 445810

IV All agricultural Products 15612.9 (0.85%)

67645.7(1.53%)

1845354.2 4414125.7

ISLFTA: Comparison of Average Agricultural Imports from Sri Lanka and

World ('000 US$)

Page 30: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Sri Lanka's Import from World and India (Neg. list prepared by Sri Lanka

Code 2001 2003 2005

World India World India World India

Meat Products (02) 3.15 0.02 3.46 0.00 3.25 0.00

Fish Products (03) 95.22 0.00 94.80 0.02 103.56 0.15

Dairy Products (04) 114.57 0.06 119.71 0.05 135.83 0.31

Live Trees and Plants (06) 8.97 0.01 10.16 0.01 10.48 0.02

Edible Vegetables (07) 134.40 0.00 111.45 0.03 141.41 0.05

Edible Fruit (08) 54.19 0.06 65.07 0.57 66.13 1.33

Tea, Coffee and Spices (09) 820.78 18.87 831.13 18.96 994.07 32.99

Cereals (10) 127.52 0.00 229.69 0.00 216.03 0.00

Milling Products (11) 10.36 0.12 14.23 0.24 65.99 0.39

Oilseed (12) 13.82 0.00 15.11 0.09 18.03 0.45

Lac and Gums (13) 0.65 0.00 0.88 0.00 0.69 0.02

Vege. Plaitingmaterials (14)

7.73 0.00 9.10 0.00 10.24 0.00

Animal and VegetableFats (15)

32.65 0.00 99.79 0.00 451.77 0.00

Contd..

Page 31: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Sri Lanka's Import from World and India (Neg. list prepared by Sri Lanka

Code 2001 2003 2005

World India World India World India

Meat and SeafoodPreparation (16)

17.42 1.30 19.24 5.68 27.48 14.29

Sugar and sugarConfectionary (17)

179.78 0.03 190.99 0.17 148.87 0.29

Cocoa (18) 5.26 0.01 4.82 0.03 4.17 0.09

Cereal and flourpreparation (19)

17.38 0.23 23.51 0.10 24.19 0.04

Vegetable and Fruit Preparation (20)

11.00 0.00 13.85 0.07 13.62 0.03

Miscellaneous (21) 26.58 0.22 36.53 0.11 33.66 0.06

Beverages (22) 16.50 0.00 21.37 0.03 22.36 0.04

Residues (23) 20.29 0.00 23.25 1.25 23.62 1.79

Tobacco (24) 90.70 0.00 91.15 0.00 105.43 0.05

Source: UNCTAD Comtrade Database

Page 32: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

Sri Lanka’s Import from India and World (Residue list Products)

Figs in 1000$

Product Description World India World India World India

2001 2001 2003 2003 2005 2005

Live Animals (01) 0.95 4.35 1.13

Meat Products (02) 48.26 58.51 51.55

Fish Products (03) 49,974.99 3,621.92 43,267.99 3,889.60 42,035.56 3,862.80

Products of animal origin (05)

4,700.27 128.10 3,999.06 9.27 1,129.88 0.28

Edible Vegetables (07) 5,239.18 67.49 4,049.68 26.79 4,656.16 109.35

Edible Fruit (08) 2,138.95 106.05 1,931.70 128.39 1,374.20 137.11

Cereals (10) 13.12 16.32 0.00 8.35 0.80

Milling Products (11) 1,639.46 2,653.07 2,752.52

Oilseed (12) 2,764.38 623.00 3,441.84 522.97 4,955.52 905.09

Lac and Gums (13) 643.46 50.10 724.69 32.37 637.48 23.61

Vegetables. Plaiting materials (14)

22.20 29.03 65.55

Animal and Vegetable Fats (15)

227.62 99.64 575.07 91.17 1,351.95 199.84

Residues (23) 22,966.17 14,038.02 43,365.08 14,644.99 65,991.08 27,872.76

Cotton (52) 399,360.17 70,741.52 486,370.42 65,587.46 609,111.64 86,256.02

Source -UNCTAD Comtrade Database

Page 33: Sunitha Raju Professor and Chairperson Indian Institute of Foreign Trade New Delhi. Implications of RTAs on the Competitiveness of Indian Agricultural.

India’s Major Export to Sri Lanka

Product Categories

Product Codes Product Description India’s Export to Sri Lanka (Million $)

2003 2006

FishProducts (03)

030559, (RL) Dry fish 1.37 3.70

Ediblevegetables (07)

070190,070310,071320,071340,071390, (N.L.)

Chickpeas, Beans, Cassava and Sweet Potatoes

21.22 40.13

Coffee and Tea Products (09)

090240,090420, (N.L) Tea , ,spices ,Coffee roasted 3.53 4.69

Cereals (10) 100190,100590, (N.L) Durum wheat and others 33.37 12.82

Sugar Products (17)

170111, 170191, 170199, (N.L) Raw sugar and others 53.32 74.90

Residues and waste from the food industries (23)

230400,(RL) 230990,(NL) Of Maize, Wheat, oil seeds, cotton seeds, Sunflower seeds

26.70 28.07

Cereal and flour Preparations(19)

190110,190190, (N.L) Preparations of infant and others 1.22 5.99

Cotton (52) 520511,520521,520535,520710,520790, (RL)520811,520831

Dyed cotton, Bleached cotton, unbleached cotton, fabrics

31.96 50.84

Source- WITS Comtrade DatabaseNote- RL- Residual List, NL-Negative List (Both the lists are prepared by Sri Lanka)