Basa Agreement of India: What It Is and How It Impacts the Seafood Industry
The Basa Agreement of India, also known as the Basa Anti-Dumping Duty, is a trade agreement that was implemented in 2020 between India and Vietnam. The purpose of the agreement is to address concerns over the dumping of Basa fish (also known as Pangasius) from Vietnam into India.
The Basa fish is a popular seafood item in India, and Vietnam is one of the largest exporters of Basa to India. However, there were concerns that Vietnamese exporters were selling Basa fish below market value, leading to unfair competition for Indian producers. In response, India implemented anti-dumping duties on Basa fish from Vietnam in 2018.
The Basa Agreement of India was negotiated between the two countries in order to resolve this issue. Under the agreement, Vietnam agreed to increase the price of Basa fish exports to India, and India agreed to reduce its anti-dumping duties. The agreement set a minimum export price for Vietnamese Basa fish to India, which is intended to prevent Vietnamese exporters from selling at a lower price than Indian producers.
The Basa Agreement of India has significant implications for the seafood industry in both countries. For Vietnam, Basa fish is a major export item, and the agreement has impacted the prices and volume of Basa exports to India. Vietnamese exporters have had to increase their prices, which has made their products less competitive in the Indian market. Some Vietnamese exporters have shifted their focus to other markets, such as the European Union.
For India, the Basa Agreement has helped to protect the domestic Basa fishing industry and support local producers. The reduced anti-dumping duties have made it easier for Indian producers to compete with Vietnamese imports. However, some critics argue that the agreement has also led to higher prices for Basa fish in the Indian market, which could impact consumers.
Overall, the Basa Agreement of India is an important trade agreement that seeks to address concerns over the dumping of Basa fish from Vietnam into India. While it has had significant impacts on the seafood industry in both countries, it is hoped that the agreement will lead to a more level playing field for Basa producers and promote fair competition.
