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India, China reach agreement on reduction of import tariffs of Indian medicines

India and China have reached an agreement on reduction of tariffs on Chinese imports of Indian medicines.

By Team ABLE

India and China have reached an agreement on reduction of tariffs on Chinese imports of Indian medicines, particularly cancer drugs, the foreign ministry here said today, days after a Chinese movie on a leukemia patient highlighted the need for paving the way for import of cheap Indian drugs.

However, it is not yet clear whether China has agreed to grant licenses to Indian companies to sell cancer drugs in the huge market here, which could be a major step.

We have seen China and India have reached agreement on the reduction of tariffs on medicines. For specifics, I will refer you to relevant competent authorities, Chinese Foreign Ministry Spokesperson Hua Chunying told a media briefing that was attended by Press Trust of India bureau.

While announcing the agreement, Hua had referred to a new Chinese film on the plight of a leukaemia patient, highlighting the pressing need for China to pave the way for import of cheap Indian cancer drugs.

Asked whether China would cut tariffs on Indian anti-cancer drugs, she said, “As far as I know, the pharmaceutical trade between China and India is growing continuously, and the two sides have maintained sound communication on promoting the entry of Indian pharmaceuticals into the Chinese market and carrying out dialogue and exchanges and cooperation on the pharmaceutical industry between China and India.”

“The relevant departments have formulated specific measures on developing bilateral cooperation in the pharmaceutical trade between China and India and promoting the expansion of Indian drugs into the Chinese market. It is believed that expanding and deepening China-India pharmaceutical trade cooperation will further enhance the health and well-being of the two peoples,\" she said.

About the general reduction of tariffs, Hua said, “We have decided to expand our imports as well as opening up. This is what China needs in order to uphold the free trade and against protectionism. This is also in keeping up with our own pace of development and opening up. On July 1, the outcome of the round of negotiations under the Asia Pacific Trade Agreement released a document and we have agreed to slash tariffs by 33 per cent. So according to my understanding the slashing of tariffs by the Indian side is also part of this negotiation. We will also impose a negotiated agreed tariff rate on relevant items in accordance with our regulations.”
The six member states of the agreement - China, India, South Korea, Sri Lanka, Bangladesh and Laos - will cut tariffs on a total of 10,312 taxable items, she said.

Hua said China has announced a series of measures to expand its opening up to the outside world, actively expand imports, significantly reduce the automobile parts and consumer goods import tariffs, also zero tariff in anti-cancer drugs.
“This is a positive measure China has taken based on its own development needs. China will continue to expand its opening up in accordance with its own pace, goals and development needs. We believe that China\'s further expansion of imports and tax reductions will bring huge market opportunities to countries in the region, including India, as well as countries around the world,” said Hua.
Source: Press Trust of India