DCPC supports bilateral request list of tariff lines in India-Indonesia CECA
The Department of Chemicals and Petrochemicals has supported India'''s bilateral request list of tariff lines for seeking deeper concessions under the India-Indonesia Comprehensive Economic Cooperation Agreement (CECA).
The DCPC said that 18 tariff lines pertain to petrochemicals in the 541 tariff lines identified for seeking deeper concessions under the CECA.
The 18 items identified by the DCPC include powder, granules, polyurethane, carboxy methyl cellulose, polymers of ethylene and vinyl chloride and flexible pipes, tubes and hoses.
The government in October launched negotiations for the India-Indonesia CECA. The bilateral CECA would build on what has already been achieved under the ASEAN-India FTA and would be a comprehensive agreement, covering economic cooperation, trade in goods and services, and investment.
India-Indonesia CECA was announced on January 25 during the visit of Indonesian President to India.
The Indian pharmaceutical companies face delays in drug registration, and there are certain regulations like those requiring foreign drug registration holders to set up a production facility in Indonesia within two years of registration and an FDI cap of 70 per cent which inhibit Indian exports of pharmaceuticals and Indian investment in the pharmaceutical sector. Establishment of working group is a significant step towards resolution of these important issues.
India and Indonesia are dynamic market economies and have undertaken wide-ranging economic reforms. Recognising that the present economic linkages between the two are important yet below their potential both the governments agreed to undertake the joint study for exploring the feasibility of a bilateral CECA. To this end, they set up a Joint Study Group (JSG).
In a partial-equilibrium framework, the projection-estimates of India’s exports to Indonesia could reach to as high as US$ 7.8 billion by the year 2020. The estimates of exports from Indonesia to India could increase to US$ 9.7 billion by 2020.
The proposed CECA also aims at setting in place trade facilitation architecture by focusing on greater cooperation on customs facilitation, standards, mutual recognition agreements, SPS measures and trade remedial measures. It is expected to enable additional market access for service providers in both countries, across a broad range of service sectors and in all modes of service supply.
© 2011 indianchemicalnews