Economy

ASEAN, Japan, South Korea are misusing FTA: PPMAI

Our Bureau New Delhi June 17 | Updated on June 17, 2019 Published on June 17, 2019

Do not include capital goods in RCEP, the Association said.

The surge in imports especially of metals and capital goods into the country has been red-flagged by the Process Plant and Machinery Association of India (PPMAI).

In a statement, the PPMAI has raised concerns about the rising import from countries including Korea, Indonesia, Malaysia and Japan with whom India has signed Free Trade Agreements (FTAs).

PPMAI represents the capital goods and process equipment manufacturing and exporting industry.

“The Free Trade Agreements (FTA), coupled with lack of reciprocity, is adversely hurting the steel manufacturers, as well as the capital goods industry. FTAs are meant to increase bilateral trade. However, India’s FTAs with Association of South East Asian Nations (ASEAN) countries and Japan have only resulted in increasing our imports of metals and capital goods with either stable or declining exports, leading to the rising trade deficit,” said Yatinder Pal Singh Suri, PPMAI and Managing Director, Outokumpu India.

“Capital goods sector and also steel suppliers to capital goods sector have been appealing to the Department of Heavy Industries (DHI) and the government to remove capital goods products from FTA and also not include them in the Regional Comprehensive Economic Partnership (RCEP) which includes 10 countries of ASEAN Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.” Suri said.

“To help the domestic capital goods industry, PPMAI urges the government to immediately suspend the duty-free advantage to FTA countries,” Suri added.

Published on June 17, 2019

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