India and China are mutually stepping up efforts to trade more farm products right from tobacco to rapeseed meal, which analysts believe can be an effectual way to solve the trade gap between the two countries.
The fact that Beijing’s agricultural trade relations with Washington are under pressure due to the China-US trade row is also helping India and China to move closer to each other in farm products trade, said the analysts.
According to a statement released by the Indian Embassy in China on 22nd January, the two countries signed the protocol for exports of Indian tobacco to China during Indian Commerce Secretary, Anup Wadhawan’s two-day visit to Beijing.
During the visit, Wadhawan met with Vice Minister of the General Administration of China Customs (GACC) Zhang Jiwen.
Trade relations between India and China are getting closer as the two governments are jointly making efforts to improve bilateral trade. As per the information provided by the Indian Embassy, the GACC discussed some ‘long-pending’ agricultural market access matters for the Indian products, following understandings reached on these issues at an informal meeting between top leaders of both the countries last year.
The GACC has permitted 6 Indian mills to export rapeseed meal to Beijing.
Moreover, the set of rules on exports of fish meal and fish oil from India to China was also inked in November last year, according to information provided by the embassy.
The statement said, "The recent phase has thus seen considerable progress in market access for numerous agricultural and related products from India (to China).
Director of Center for Asia-Pacific Studies at Shanghai Institute for International Studies, Zhao Gancheng said, "Agricultural cooperation is a big opportunity to enhance the current China-India trade situation, as India is a vast agricultural nation and most of its farming products are non-genetically modified organisms".
Zhao also said, "The US-China trade friction also gave an opportunity for India to export more farm products, like soybeans, to China”.
Liu Xiaoxue, an associate research fellow at the Chinese Academy of Social Sciences' National Institute of International Strategy said, "India is the world's top dairy producer and milk consumer. Additionally, Indian people don't eat bovine meat, therefore, they could export the meat to China”.
