India urges more trade action
The Indian ambassador to Cambodia is calling on the government to reduce exorbitant shipping costs and take better advantage of a tariff scheme that India offers, two obstacles that the diplomat says are discouraging bilateral trade.
Ambassador Dinesh Patnaik said on Tuesday that Indian businesses exporting goods to and from Cambodia are paying port fees estimated to be as much as $800 per 20-foot container, compared with $400 in Vietnam.
Consequently, Patnaik described how instead of shipping directly to and from Sihanoukville Autonomous Port, Indian businesses are sending goods to Vietnam’s Ho Chi Minh port and moving them overland.
“Indian businesses are opting to ship bulk to Ho Chi Minh port as their main entry point, then transporting by road to Cambodia,” he said. “Cambodia’s government needs to keep port prices down.”
His second complaint refers to a 2009 duty-free trade agreement under which the Indian government grants Cambodia an 85 per cent reduction on Indian customs fees. …
According to the Indian Department of Commerce, volumes (imports and exports) between India and Cambodia increased nearly 17 per cent, from $106 million in the 2011-2012 fiscal year to $124 million in the 2012-2013 period. India’s fiscal year runs from April 1 through March 31. …
Eddie Morton
http://www.phnompenhpost.com/business/india-urges-more-trade-action
