India to Raise Non-Tariff Barriers Issue at G20, Other Forums in 2023
To increase transparency in the use of such barriers, India will be using all bilateral and multilateral platforms to bring up the issue of the carbon tax and other non-tariff barriers (NTB) at the G20 trade and investment ministers’ meeting, according to Sunil Barthwal, the secretary of commerce.
India will undertake bilateral discussions with the leaders and trade ministers of the nations with which free trade agreements are being discussed as G20 delegates assemble in Jaipur for the trade and investment ministerial summit on August 24–25.
There will also be ministers from the US, UK, Canada, and other nations. We can undertake some crucial bilateral discussions on our FTAs at this G20 ministerial meeting. With its team, the UK is travelling. High-level talks about the FTA will be held with the UK, according to the secretary.
Bilateral talks would concentrate on the negotiation’s progress with Canada and the EU. The FTA with the UK is nearing completion, so after the bilateral meeting on the fringes of the G-20, more high-level visits will be made where both countries are anticipated to conclude discussions on outstanding matters.
Out of the 26 chapters or policy areas that would make up the trade agreement, negotiators from India and the UK have finished talking about 19.
Industry sources claim that the UK has agreed to significant reductions in tariffs in sectors that are important to India, such as textile, leather, and gems and jewellery, and that a deal on taxes India imposes on vehicles, wines, and spirits is imminent.
Katherine Tai, the US trade representative, will be in Jaipur. If a bilateral meeting occurs, an assessment of the developments since Prime Minister Narendra Modi’s trip to the US will be made.
During the PM’s visit, India and the US decided to settle trade issues at the World Trade Organisation (WTO) and work on additional ways to strengthen economic relations.
Lowering trade barriers for services, increasing transparency in the use of the non-trade obstacles, helping the least developed nations build their capacity to participate in global trade, creating resilient and sustainable value chains, and WTO reform are the top priority areas at the G20 trade ministers’ meeting. The involvement of micro, small, and medium-sized businesses in trade and logistics will also be covered.
Non-tariff barriers are of particular importance to India, according to Barthwal: “Definitely, we are discussing those NTBs, and we are also discussing how to find a good solution, how to find a platform where we coordinate on these issues and understand these issues.”
He added that NTBs and problems like the EU’s carbon tax, which other nations are also contemplating, will be handled multilaterally and bilaterally. “On NTBs, all platforms will be utilized.”
India discussed the carbon pricing issue with the EU at the Trade and Technology Council and the WTO.
As one of the world’s leading economies, India is taking significant steps to address concerns related to international trade. In 2023, India signalled its intent to bring up the issue of non-tariff barriers (NTBs) at several international platforms, including the G20 Summit. This article delves into the intricacies of this move, considering the broader context of global trade and India’s strategic interests.
Non-tariff barriers restrict imports or exports of goods or services through means other than tariffs. Examples include quotas, licensing regulations, embargoes, sanctions, and standards. Non-tariff barriers can be used by countries to protect domestic industries and consumers, but they can also serve as tools to restrict trade unfairly.
India has long raised concerns over the growing use of non-tariff barriers by several countries. According to India, these barriers severely affect its export potential and ability to integrate further into global value chains. Specific concerns include:
- Discriminatory Standards and Regulations: India has expressed that certain countries use overly stringent or discriminatory standards, and complex conformity assessment procedures, which effectively block Indian exports.
- Subsidies and Domestic Support: Some countries are accused of providing excessive grants to their domestic industries, undermining fair competition.
- Unjustified Sanitary and Phytosanitary Measures: India contends that some nations use these measures beyond legitimate public health and safety protection, making it difficult for Indian products, especially agricultural ones, to enter their markets.
India plans to raise the issue of non-tariff barriers concertedly at various international forums, including the G20, WTO, and during bilateral talks with concerned countries. The strategy is to articulate the problems and how these barriers contravene the free and fair trade spirit.
India intends not just to raise the issue but to propose solutions. These might include:
- Streamlining and harmonizing regulations and standards.
- Establishing independent, international bodies to evaluate and rule on the fairness of non-tariff barriers.
- Encouraging transparency and dialogue between nations to solve issues before they become significant trade barriers preemptively.
India is keen to build alliances with other countries that face similar challenges. This could involve South-South cooperation, where developing countries unite to address common challenges, or broader coalitions with developed countries concerned about the rising use of non-tariff barriers.
If India’s strategy is successful, it could lead to significant changes in global trade norms. It might prompt a move towards greater transparency and fairness in applying non-tariff barriers, fostering a more level playing field for all countries involved in international trade.
Addressing NTBs could have significant positive effects on India’s domestic economy. By removing these barriers, Indian products would have better access to global markets. This, in turn, could stimulate growth in various sectors, particularly in manufacturing and agriculture, which have been a focus of the Indian government’s push towards a self-reliant India under the “Aatmanirbhar Bharat” initiative.
India’s move to raise the issue of non-tariff barriers will not be without opposition. Countries that rely heavily on these measures to protect their domestic industries may refrain from any push for significant changes. Moreover, consensus-building at forums like the G20 and WTO can be slow and challenging, requiring considerable diplomatic skill and persistence.
India’s decision to raise the issue of non-tariff barriers at the G20 and other international forums in 2023 marks an essential step in its efforts to reshape global trade norms. As the world grapples with free and fair trade issues, India’s initiative could play a pivotal role in creating a more equitable international trading system. Nonetheless, achieving substantial reform will require careful diplomacy, strategic alliance-building, and a willingness to negotiate and compromise.
