Hidden Market Access Barriers in China: India’s Exports in Electrical Machinery

25 Pages Posted: 5 May 2020

See all articles by Kallummal Murali

Kallummal Murali

Indian Institute of Foreign Trade - Centre for WTO Studies

Prerna Manral

affiliation not provided to SSRN

Salahuddin Ayyub

affiliation not provided to SSRN

Date Written: April 14, 2020

Abstract

India and China have significant bilateral trade flows leading to trade specialization in different product categories. The bilateral trade between these countries is clearly dominated by the Chinese exports. The trade figures show that the value of India’s import from China stood at USD 71.9 billion against its exports to China USD 12.4 billion. This paper evaluates the trade barriers faced by India in China’s market focusing mainly on electrical machinery sector. The empirical analysis shows that China has hidden trade barriers in electrical machinery sector by replacing the use of ad-valorem tariff with non-ad valorem tariff (AVE’s). This study will help India to address the issue of market access and demand removal of trade barriers in the electrical machinery sector while negotiating at the RCEP with China to address the issue of trade imbalance.

Keywords: RCEP Negotiations, Non-Ad-Valorem Tariff, Technical Barriers to Trade, Electrical Machinery, Time Series, China

JEL Classification: F13, F14, F15, F69

Suggested Citation

Kallummal, Murali and Manral, Prerna and Ayyub, Salahuddin, Hidden Market Access Barriers in China: India’s Exports in Electrical Machinery (April 14, 2020). Available at SSRN: https://ssrn.com/abstract=3575344 or http://dx.doi.org/10.2139/ssrn.3575344

Murali Kallummal (Contact Author)

Indian Institute of Foreign Trade - Centre for WTO Studies ( email )

India

Prerna Manral

affiliation not provided to SSRN

Salahuddin Ayyub

affiliation not provided to SSRN

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