The trade war between US and China
which is generally looked upon as something not very positive to the global trade
is likely to force India to look for alternative markets.
India looks to the opportunity of trebling its
Cotton exports to China in the wake of 25 percent import tax on 106
commodities, including cotton, from the US.
The US slapping of 25 percent tariff on
steel and 10 percent on aluminium imports does not seem to help improve the
relations with the US which has not included India in the exempted list which
has EU, Australia, Argentina, Brazil, Canada, Mexico and South Korea.
This move of US has pushed India to
consider moving to WTO dispute resolution committee to challenge the US duty
hike. The issue becomes important as the US is also threatening to drag India
to WTO for a number of export promotion schemes. The US says India is
subsidizing exports of a number of goods.
China has already moved the WTO forum against US
duties on steel and aluminium. A powerful US, however, has weakened the WTO on
many issues. It has also made the UN having a less effective look. The US moves
are likely to hit handicraft, handloom and garment and some farm goods exports.