The domestic industry need not, hereafter, unduly worry about any surge in imports from Singapore on account of the preferential treatment under the India-Singapore Comprehensive Economic Cooperation Agreement (CECA).
The Centre has now put in place a safeguard mechanism to tackle situations of serious injury or threat of serious injury to the domestic industry owing to increased imports from Singapore.
The import surge could occur due to reduction or elimination of Customs duty under the trade agreement.
The India-Singapore CECA came into effect from August 1, 2005.
Official sources said the safeguard rules under the India-Singapore Trade Agreement allows the Centre to suspend further reduction in Customs duty under the trade agreement or increase the existing rate of duty.
The preferential benefits could be suspended if the injury to the domestic industry or threat of injury were to be established after investigation by the safeguards authority here.
India-Singapore bilateral (merchandise) trade has seen a quantum jump from $3.6 billion in 2005 to $19.11 billion in 2008.
Source : Business Line