India Pitted Against with China in Ban Game

China has warned India that it would also clamp restrictions on Indian food products including seafood and sesame oil if India did not remove ban on its dairy products. China reacted following India banned imports of chocolates and chocolate products from China besides its restrictions on Chinese milk and milk products since last September charging them with melamine contamination.

India in January even had banned Chinese toys on the grounds that they contained toxic lead paints and flawed designs. Commerce and Industry Minister of India, Anand Sharma informed the parliament that the country had however lifted the ban two months later on the condition of permitting products those maintained WTO standards as India complied with WTO rules.

During the same parliamentary session, the state minister for commerce of India, Jyotiraditya Scindia said that Indian Embassy in China is in constant touch with the authorities to resolve this issue. The ban on milk and milk products, including chocolate from China will be effective till December 24 this year.

Nonetheless, China purportedly as a retaliatory measure has informed New Delhi that its food and safety organization, GAQSIQ had encountered food safety problems in imported food products like seafood and sesame oil from India. China further clarified its stand that if India insisted on extending the ban on milk and milk products till the end of the year, it would be forced to respond to the quality of the Indian food imports too.

In 2008-09 fiscal, India-China bilateral trade has witnessed a significant jump of about $51bn from its previous year’s $38bn. China has become the largest trading partner of India in 2008-09 by replacing the US. But if China sets for a trade war with India by imposing restrictions on Indian imports as well, the growth in two-way trade is likely be in for drastic decline.

By Jose Roy