Asia

US China Trade War Impact: China Removes 7 Year Old Ban on Indian Livestock Feed

Since a trade war erupted between the US and China, Indian traders have been able to capitalize on the gap created in the process. Between April and August, India’s exports to China have grown an average 52.9 % year-on-year, highest in the past several years.
Sputnik

New Delhi (Sputnik) — China has removed the ban it imposed seven years ago on rapeseed meal imports from India, China's customs administration announced on Monday. The ban was removed following repeated requests by the Indian government on several occasions in the last one year including a key meeting between ambassadors of the two countries in August 2018.

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According to the General Administration of Customs, Indian traders can resume exports of rapeseed meal, a key ingredient in animal feed, if they meet certain inspection and quarantine requirements. China had banned the import of rapeseed meal in 2011 over quality concern. Before the ban, India exported 4 lakh tones of oil-meals to China worth about $ 57 million a year.

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Industry representatives in India exulted the decision while hoping that the remaining procedure set out by the Chinese authorities would not become cumbersome for the traders.

"India has enough stocks and the industry can export over 5 lakh tonnes of rapeseed meal to China. However, it is the only first step which is cleared. Now, every prospective trader who wants to export rapeseed meal will have to get register themselves with China's agriculture ministry. Then, there will be customs clearance required. I think it will take at least two-three months to resume the export," B V Mehta, executive director, the Solvent Extractors' Association (SEA) told Sputnik.

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China started to take a liberal stance on imports from India after the US unleashed a tariff war. Only last month, China opened its doors for Indian non-basmati rice which was banned over safety and quality concern. The Chinese government also reduced tariffs on soybean imported from India, South Korea, Bangladesh, Laos, and Sri Lanka from the current three percent to zero.

From being a small trading partner of India in 2001, within a span of fifteen years, China has rapidly become India's biggest trading partner. Trade between the two countries has been expanding but India's trade deficit with China has been growing.

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