Cir(152)/2022                                                                            November 30, 2022

 

Committee:

Sub: India-Canada FTA Discussion – Status so far and request for feedback on raw material imports – reg.

As you are aware that India-Canada CEPA negotiations are proceeding in a fast-track mode. In this regard, the Ministry of Commerce & Industry is organizing stakeholder consultations at regular intervals.  The items discussed so far and CITI’s stand on the same are given below for your reference:

S. No.	Items	CITI’s Stand
1	Rules of Origin	·      Include goods originating in either of the two partner countries, with 35% of Regional Value Content (RVC) ·      Consider bi-lateral cumulation only ·      Assess the RVC as a percentage of FOB value and not on transactional value
2	De Minimis	Accepted the proposed De Minimis threshold of 10% and proposed to calculate the same in terms of the weight of material used and not on the weight of the component.
3	Product Specific Rules (PSR)	The present trade data between India and Canada shows that India has very little defensive interest with Canada. CITI has proposed liberal PSRs for raw materials, particularly at fibre and yarn stage for which India is import dependent and a defensive PSR of CTH + RVC 40% for items in which India’s domestic industry is strong. (Please refer Attached Excel List of PSRs)

Now the Ministry of Commerce & Industry is looking forward to discuss the “Absorption Principle” to deliberate on the textile inputs imported from Canada primary or secondary, directly or anywhere in the value chain for identification of possible threats.

In this regard, the industry is required to give feedback on any such raw material that has the possibility of being imported from Canada and can prove to be a threat to the domestic industry.

As per the trade data available, India imported Textiles & Apparel products worth about US$ 32 Mn from Canada during 2021 of which about 50.4% were Used and New Rags and about 38% were 2^nd Hand Clothing items.

We look forward to the industry’s feedback on the above-mentioned subject matter latest by 7^th December so that the same can be compiled and shared with the Ministry of Commerce & Industry.

In case you have any additional comments/observations on Rules of Origin or De Minimis or PSR, you are requested to share the same so that the same can also be taken up with the Ministry of Commerce & Industry.

Thanking you,

 

Yours faithfully,

 

 

Chandrima Chatterjee

Secretary General