With a view to finalise India's position on a proposed free trade agreement with Bay of Bengal Initiative for MultiSectoral Technical and Economic Coorperation (BIMSTEC) nations, the government has initiated consultations with the domestic industry to identify non-tariff barriers and their impact on the country's exports to the region.
Commerce ministry has sought comments from exporters and other stakeholders on whether non-tariff barriers in the form of technical norms, sanitary standards, certification and procedural requirements imposed by the countries are becoming an obstacle for the growth of India's exports to the region.
The exercise is aimed at finalising India's position for a FTA with BIMSTEC nations. It also seeks to determine if non-tariff barriers push exporters to engage into practices that cause revenue loss to the government, besides finding out the monetary and qualitative impact of NTBs.
Besides India, the BIMSTEC grouping comprises of Bangladesh, Bhutan, Myanmar, Nepal, Sri Lanka and Thailand.
India's main exports to BIMSTEC countries include vegetables and cereals; engineering and other capital goods; petroleum products; iron and steel items; vehicles; cement; iron ore, aluminium and various types of steel; insecticides and inorganic chemicals and rough diamonds.
Intra-regional trade among BIMSTEC countries was 14.75 per cent of their total trade in 2003. India's intra-regional trade with BIMSTEC countries increased from 4.12 per cent in 2001 to 6.61 per cent in 2003.
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