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Happenings / News / Press CoverageTime Magazine: India Launches a Toy Trade War with China
For trade policymakers, a resonant message from the recent World Economic Forum conference in Davos, Switzerland, was the need to guard against protectionism amid the global financial crisis. Indian Trade Minister Kamal Nath led a chorus of Davos voices warning that governments, desperate for measures to preserve their slumping domestic industries, might move to restrict imports to ease competitive pressures — a formula that in the past has only exacerbated economic downturns by sparking commerce-killing trade wars.
But just days after Nath's warning, India is being accused of raising trade tensions between the world's two largest emerging economies by imposing a temporary ban on imports of Chinese-made toys. The six-month ban was announced Jan. 23 by the Indian Directorate-General of Foreign Trade, which issued a two-sentence notification saying the restriction was being made "in public interest." Today, two weeks after the announcement, Nath finally spoke up on the matter, saying that India's step is WTO-compatible, and has been taken to ensure public safety. "The decision to ban was taken on the grounds of public health and safety," he said. "This is just a one-off issue, otherwise India-China trade is booming. Public health and safety should get priority over commerce."
But China was swift to condemn the ban as protectionist. The China Daily, the official government newspaper, reported that Beijing may contest India's measure by taking the matter to the Dispute Settlement Body of the World Trade Organization (WTO). The newspaper cited WTO rules against "illegal trade barriers and punitive measures at a time when protectionism is growing amid the global economic recession."
But Indian industry officials were just as quick to deny India was violating the international fair-trade standards. "There is nothing protectionist about it," says Anjan Roy, economic affairs advisor at the Federation of Indian Chambers of Commerce and Industry. Roy pointed to a spate of scandals in 2007 over the safety of Chinese-made toys. In August 2007, Mattel, the U.S.'s leading toy company, was forced to recall 9 million of its products made in Chinese factories due to high lead levels in paint and other safety issues. "If it is a very harmful product, India has a right to ban it," Roy says. That sentiment was echoed by Toys Association of India president Raj Kumar, who denied that his industry group lobbied the government to protect Indian toymakers facing competition from the cheaper and wider range of Chinese toys. "There is a public interest litigation filed by an NGO in the Mumbai High Court questioning the safety of Chinese toys," Kumar says. "The court is expected to rule that safety norms be implemented," he added, saying this prompted the government's move.
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 | Fact Sheet | | | Nature of Business | : | Manufacturer, Trader | | Major Markets | : | Indian Subcontinent |
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Contact Details | Company Name:
 | Khazana Toys Private Limited | | Contact Person: | Mr. Manager | | Telephone: | +(91)-(11)-29534340 / 29534341
| | Address: | Khazana Toys Private Limited 9, Scheme Iii, Okhla Industrial Area Phase Ii, New Delhi, Delhi - 110020 (India) |
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