China willing to settle toy ban issue through talks

Denying reports that China had gone to the World Trade Organisation to resolve the issue of the ban imposed by India on Chinese toys...

Denying reports that China had gone to the World Trade Organisation to resolve the issue of the ban imposed by India on Chinese toys,Chinese vice-minister for trade Zhong Shan on Thursday said they hope to resolve the trade dispute through bilateral negotiations. He,however,did not entirely rule out the possibility of contesting Indias decision to ban Chinese toys in the WTO. We do not rule out litigation at the WTO. But now,we are in bilateral consultation, Shan told reporters after talks with commerce secretary GK Pillai here.

Though India has lifted the ban on importing Chinese toys imposed in January,it still retains the safety standards for consignments from China,thereby effectively restricting entry to a majority of their toy industry. Pillai said he has assured the Chinese vice-minister that India is in the process of broad-basing safety norms for imports from all countries. The future course of action on safety standards will be applicable even to domestic industry, Pillai told the Chinese delegation led by Zhong.

While India has explained the reasons for its import ban,it is not worried over China taking the dispute to the WTO. We are not worried, Pillai said. China felt that the Indian action on import curbs was directed only against it. This is being examined by the government and these standards for import of toys would be extended to all countries. Similar standards would need to be imposed on domestic manufacturers, Pillai said.

China went further to express its concern over the imposition of safeguard duties by India on its goods. But Pillai said the duties were being resorted to within the framework of multilateral rules. I believe China will not resort to retaliatory measures 8230; China believes in WTO rules, Zhing concurred.

The two countries have also decided to set up a joint panel to remove contentions in trade matters. For instance,India has sought access to the vast Chinese market for farm products. With China agreeing to send an inspection team for Basmati rice for the kharif season,India can hope to ship the fine grain variety this year,Pillai said.