India is non-committal on market economy status for China

India is non-committal on market economy status for China, India is not inclined to automatically grant the coveted ‘Market Economy Status’ (MES) to China under World Trade Organisation (WTO) norms in December 2016.  Under WTO norms, once a country gets MES status, exports from it are to be accepted at the production costs and selling price as the benchmark. Prior to this status, country is

considered as a Non Market Economy (NME). The main reason India is reluctant to grant MES to China is that it will severely curb India’s ability to impose anti-dumping duties on “unfairly priced” Chinese imports.

iv. It will have negative impact on India’s manufacturers in chemicals, steel, electrical and electronics sectors as they will be severely hurt by unfairly low-priced imports from China.

India is non-committal on market economy status for China