(a) whether some domestic industries viz. Steel and Pharmaceutical Industries have been critical about existing trade agreements with ASEAN, Japan and South Korea;
(b) if so, the details thereof;
(c) whether India’s trade deficit with these countries have widened after these pacts came into force and there was a little left for the domestic industry to benefit; and
(d) if so, the manner in which the Government proposes to solve the problem?
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI C. R. CHAUDHARY)
(a) & (b) Yes Madam. 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.
(c) & (d) 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.
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