Global Economy: February 2009 Archives

By Sujay Mehdudia | The Hindu (India)
February 08, 2009

Brushing aside the threat by China of dragging India to the World Trade Organisation (WTO), Commerce and Industry Minister Kamal Nath on Friday plugged the loopholes in the rules that could allow manufacturers in China to dispatch toys into the market through a third country.

Officials said here that the Ministry has informed and alerted the customs authorities to ensure that Chinese toys do not enter the Indian ports through a third country route.

"Prohibition shall be applicable on all such toys which have originated from China, irrespective of the country of import. Originated shall mean 'manufactured' in China," the Directorate General of Foreign Trade said in a directive to all Commissioners of Customs and licensing authorities.

Mr. Nath said the ban on Chinese toys was on grounds of public health and safety and the action was compliant with the WTO rules. "India is a responsible country and before we take any action we make sure that it should be WTO compatible," Mr. Nath told journalists here. However, he said the move would not sour India's commercial ties with China because the ban was a matter of public rather than commercial concern.

After India slapped the ban on import of toys from China on January 23, Chinese official media reported that Beijing was contemplating a WTO action against New Delhi.

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