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India can replace US exports to China

Following China’s trade war with the US, India can export more cotton, corn, almonds, wheat and sorghum to China. In fact, there are at least 100 products where India can replace US exports to China by benefiting from the higher import duty China has imposed on products originating in the US.

Fresh grapes, cotton linters, fluecured tobacco, lubricants and certain chemicals, including benzene, are a few products which the US has been exporting to China. India too has been exporting these products to China but now there is scope for India to increase exports of these products because of the tariff differential and the substantial demand in China.

While China has imposed 15 to 25 per cent tariff on these goods coming from the US, other countries are subject to a five to a 10 per cent duty. Moreover, India has been granted additional duty concessions under the Asia Pacific Trade Agreement, making its exports more competitive.

Corn is of specific interest to India as the country is a huge corn exporter. While American corn is subject to 25 per cent duty, APTA countries can get up to 100 per cent concessions on corn exports to China.