EASE OF TRADE, Pg 8.

Key Highlights:

• US-India trade negotiations are ongoing to address trade barriers, despite a 50% tariff on Indian exports to the US.
• India-EU trade talks are progressing, with both sides aiming to finalize negotiations by the end of the year.
• Quality Control Orders (QCOs), intended to ensure product quality, are acting as non-tariff barriers, increasing costs.
• As of March, 187 QCOs covering 769 products have been notified, impacting various sectors.

Detailed Insights:

• The US tariff is already impacting Indian exports, with 50% of shrimp orders from Andhra Pradesh reportedly cancelled.
• QCOs are issued based on recommendations from the Department for Promotion of Industry and Internal Trade.
• The Confederation of Indian Textile Industry and MSMEs have raised concerns about QCOs increasing input costs.
• NITI Aayog Vice Chairperson has termed QCOs for inputs a "malign intervention," and a high-level committee is deliberating on non-tariff regulatory reforms.
• Lowering tariffs alone is insufficient; transparent and predictable trade regimes are crucial for global supply chain integration.
• Imposing non-tariff barriers complicates efforts to boost manufacturing and integrate with global supply chains.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are moved across a customs border.
• Non-Tariff Barriers: Trade barriers that restrict imports or exports of goods or services through mechanisms other than simple imposition of tariffs.
• Free Trade Agreement: A pact between two or more countries to reduce barriers to imports and exports among them.
• Quality Control Orders (QCOs): Regulations mandating adherence to specific quality standards for products, potentially acting as trade barriers.