India and China will sign a bilateral agreement for review of anti-dumping policies on an annual basis, following intense pressure from Beijing over the high number of anti-dumping cases initiated by India against Chinese products.

Government officials told Business Standard a memorandum of understanding between the two countries would be signed shortly. They added that the decision was taken at a bilateral meting on September 22.

The officials, however, added that under the agreement, the two signatories would not discuss individual cases but only a review of bilateral policies would be undertaken.

Issues regarding treating China as a non-market economy country, in cases where adequate data is unavailable or Chinese exporters have not responded to Indian anti-dumping authorities' public hearing notices, have been a bone of contention between the two countries in the past.

Chinese products have faced the maximum number of anti-dumping duties around the globe as well as in India. India is the largest user of anti-dumping duties, having initiated over 160 investigations with over 60 cases involving China.

The Chinese government had also raised the issue of the high number of anti-dumping proceedings when Commerce and Industry Minister Arun Jaitley visited Beijing last month.

Jaitley had also proposed a review mechanism for the two countries two iron out differences through negotiations.

Officials said a similar review mechanism with South Korea was also proposed and the details of the MoU would be worked out shortly.

Trade experts said due to the proximity between the two countries and large-scale manufacturing facilities in China, the quantum of Chinese goods entering India was on the higher side.

The Chinese delegation from the Bureau of Trade also raised the issue of anti-dumping duty imposed by India on mulberry silk imported from China.

Chinese officials have visited India in the past to present the case of Chinese mulberry silk exporters and have argued that export of the products are not eating into Indian producers' marketshare and the price at which it is being exported is also a fair price, which is not below the normal value.