North America, consisting of Canada, Mexico and the US, holds immense potential for India, both in terms of trade and investment opportunities. Within the region, Mexico is an open economy and is continuously working to diversify its business partners. Donald Trump’s recent policy initiatives have raised concern amongst the Mexican policy makers. Mexico is now on a look out for building closer associations with its existing potential trade partners. India is one such country and there lies huge potential for cooperation in trade and investment. It is to be noted that India and Mexico already have a Bilateral Investment Promotion and Protection Agreement (BIPPA) in place to promote flow of investment and protect the interests of investors of either country in the other country’s jurisdiction.

During the recent months (April-February 2016-17), India’s export of engineering products to the region, US and Canada, has experienced a decline; while exports to Mexico realized a considerable jump of almost 33%. We expect that in the coming months India’s exports to USA and Canada would rebound turn positive.

This edition includes a brief note on the current trade trend between India and North America. I hope this will be

insightful for our readers and they will enjoy reading it.

Tarvinder Singh Bhasin

This edition of Territorial Newsletter for North America captures the latest trends in India-

Mexico bilateral trade relations. Both the nations are charting out a new path in bilateral trade

and investment ties with a focus on sectors including renewable energy, telecom and medical

devices.

The current edition also presents a brief insight on the total trade pattern of the engineering

sector in North America during the April-February of the fiscal 2016-17. Further, it discusses

the top engineering product bilaterally traded between India and the countries of the region.

Upcoming tenders from the region along with key news items and factsheets of Anti-Dumping Duty matters is

compiled and presented for the benefit of our members. I am hopeful that the Newsletter will give fruitful

information to our readers.

Anupam Shah

Message from Chairman, Committee on Trade with North America

Chairman’s Pen

March 2017

The North America trade bloc had its genesis in the North American Free Trade Agreement (NAFTA) signed by Canada, Mexico, and the United States. The agreement came into force on January 1, 1994.

Area: 24.71 million Sq. km

Population: 576,163,467 (2015)

GDP: USD 20,834.888 billion (2014)

Currency: US Dollar ($)/ Canadian Dollar

Climate: North America includes all of the mainland and related

offshore islands lying north of the Isthmus of Panama which

connects it with South America. It has a variety of climate, from the

dry, bitter cold of the Arctic to the steamy heat of the tropics. The

North American tundra, the vast treeless plain of the far north, has

temperature rises above freezing for only a short period each

summer. In the far south there are low-lying areas which are always

hot and rainy.

Natural resources: North America produces most of the world's corn, meat, cotton, soybeans, tobacco, and wheat, along with a variety of other food and industrial raw material crops. Mineral resources are also abundant; particularly coal, iron ore, bauxite, copper, natural gas, petroleum, mercury, nickel, potash, and silver.

Due to the discriminatory policy of Trump presidency, Mexico has started pursuing a diversification in its trade

partnerships, focussing on large markets like India. At present. Mexico depends on the US for 81% of its exports and

nearly 50% of its imports.

Indo-Mexican investment

Mexico is an easy and exciting place for doing

business. The World Bank places Mexico at 39th rank

on its Ease of Doing Business Index. Mexico

particularly excels in the ‘Getting Credit’ category, in

which it is ranked 12th worldwide. Besides Mexico’s

own sizable market and investment-friendly policies,

it has a strategic advantage as a gateway to the world’s

largest NAFTA market as well as other Latin American

markets. Mexico has been the leading destination for

both capital investment and FDI projects from Latin

America and the Caribbean region. Indian companies have noticed this and they are increasing their presence by

North America: Canada, Mexico, and the United States

Cover story: Indo-Mexican bilateral trade- growing at a double-digit pace

making Greenfield investments and setting up joint ventures. Mexico’s strategic geographic location, availability of

highly qualified human capital, competitive operating cost and free trade network with 46 countries makes it easier

for investors to explore and invest.

It is also worth mentioning that Mexico has been one of the biggest investors in India. As of 2016, 13 leading

Mexican companies such as Cinepolis, Mexichem, Kidzania, Metalsa, Nemak, Grupo Kuo, Katcon etc., which have

invested more than $800mn in India. It is believed that this trend will continue for Mexican companies because they

see a lot of promise in India, not only for the current size of its local market and its future growth potential but also

for its very competitive labour cost.

Indian Government Programs such as 'Make in India', 'Digital India’, etc. are key initiatives to attract investment,

and many Mexican companies are interested in sectors such as food processing, IT and telecom, auto component,

Infrastructure (affordable housing) among others and are keen to take advantage of these programs.

Indo-Mexican bilateral trade

Trade with India has grown up over 400 per cent since 2004. Major sectors are oil, information technology,

automobile and autoparts. Bilateral trade between the two countries is growing rapidly. In last five years, India-

Mexico bilateral trade has increased from $3.9 billion in 2011-12 to $5.1 billion in 2015-16. The following table

depicts the same:

Table1: India Mexico bilateral trade

US $ Millions

Year 2011-12 2012-13 2013-14 2014-15 2015-16

India's Exports to Mexico 1367.37 1628.24 2227.44 2861.55 2865.16 %Growth 19.08 36.8 28.47 0.13

India's Total Global Export 305963.9 300400.6 314405.3 310338.5 262290.1

Mexico's %Share 0.45 0.54 0.71 0.92 1.09

India's Imports from Mexico 2579.73 4037.62 3672.43 3393.15 2283.19

%Growth 56.51 -9.04 -7.6 -32.71

India's Total Global Import 489319.5 490736.7 450199.8 448033.4 381006.6

Mexico's %Share 0.53 0.82 0.82 0.76 0.6

Total Trade with Mexico 3947.1 5665.86 5899.87 6254.7 5148.35

%Growth 43.54 4.13 6.01 -17.69

India's Trade Balance with Mexico

-1212.36 -2409.38 -1444.99 -531.6 581.97

Source: DGCI&S, Govt. of India Trade & investment in the engineering sector Mexico is one of the biggest export markets for Indian car makers. In fact, trade and investment in these industries

are mutual. While, Mexican auto components manufacturers like Metalsa, Nemak, GrupoKuo, Katcon have invested

millions in India, Indian auto companies like Baja Auto and Motherson Sumi Group are expanding rapidly in

Mexico. Not only that, Mexican automotive and auto parts industries are leading the world today and from 2013 to

date, over $23.2 billion in new investments have been announced or put to use.

In case of base metals, on one hand we have Indian steel giant ArcelorMittal in Mexico and on the other Grupo

Villacero in India – both reaching new highs in respective trade destinations.

India’s engineering exports has increased from $794.9 million in 2012-13 to $1891.7 million in 2015-16, registering a

CAGR of 34%. India’s automobile exports to Mexico increased from US$ 1.1 billion in Apr – Feb (2015-16) to US$

1.6 billion in Apr – Feb (2016-17).

Following figure depicts India’s engineering exports to Mexico during Apr-Feb 2016-17.

Fig1: India’s major engineering exports to Mexico

US$ Million

Mexico is emerging a major trade and investment partner of India in the North America trade block. With suitable

promotion measures from both the governments in terms of direct shipping, banking and aviation, and a Free Trade

Agreement, the bilateral total trade has the potential to reach $ 10 billion in the coming 5 years.

India engineering export with North America – country wise during April-February of the fiscal of 2016-17 is

depicted in the table below. Nations which had the highest demand for Indian engineering products during April-

February of the new fiscal 2016-2017 in absolute values include:

Table2: Engineering Exports to North America

Value in USD million North America April-February 2015-16

(USD million) April-February 2016-17

(USD million) Growth (%)

USA 6254.29 6190.94 -1.0 Mexico 1658.49 2202.70 32.8 Canada 434.80 373.86 -14.0 Total 8347.6 8767.5 5.0

Source: DGCI&S

86.32

58.37

179.43

151.74

887.34

83.35

136.10

146.06

158.20

1408.85

0.00 200.00 400.00 600.00 800.00 1000.00 1200.00 1400.00 1600.00

Industrial Machinery

Iron and Steel

Aluminium and products

Auto Components/Part

Motor Vehicle/cars

APRIL,2016 - FEBRUAY,2017 APRIL,2015 - FEBRUAY,2016

India’s latest trend in engineering exports to North America

Fig 2: Trend in Total Engineering Export in North America during 2016-17 Month wise

Table 3: Top 15 engineering panels exported to North America in April-February 2016-17 US$ Million

DGCI&S Engineering Panels India’s export in April-

February 2015-16 India’s export in April-

February 2016-17 Growth

(%)

Motor Vehicle/cars 888.97 1412.21 58.86 Products of Iron & Steel 1348.10 1285.53 -4.64 Auto Components/Part 993.87 924.72 -6.96 Electric Machinery & Equipments 518.28 702.73 35.59 Industrial Machinery 758.03 607.13 -19.91 Other Miscellaneous items 545.17 529.49 -2.87 Aircrafts and Spacecraft parts and products 468.21 522.41 11.58 Aluminium and products 470.75 454.07 -3.54 Iron and Steel 446.81 424.12 -5.08 IC Engines and Parts 369.96 382.25 3.32 Machinery for Injecting moulding, valves and ATMs 271.51 259.00 -4.61 Medical and Scientific instruments 192.33 224.93 16.95 Copper and products 143.38 135.02 -5.84 Pumps of all types 148.38 123.95 -16.47 Hand Tools & Cutting Tools 131.11 120.64 -7.99

Source: DGCI&S

Indian Engineering exports to North America topped during April-February of the current fiscal 2016-17, followed

by European Union, South Asia and ASEAN+2 during the same time period.

USA remained at the top for Indian engineering exports registering a significant positive monthly growth of 28.6 %

in February 2017vis-à-vis February 2016. The main engineering products exported to the country include Products

of Iron and Steel, Auto Components/Parts, Electrical Machinery and Equipment, Industrial Machinery, Aircrafts

and Space crafts, Other misc Items, etc during April- February 2016-17.

727.9 696.7771.4 805.1 804.9 815.3 851.5

700.8

916.4

807.0870.4

0.0100.0200.0300.0400.0500.0600.0700.0800.0900.0

1,000.0

Va

lue

in

US

$ M

illi

on

The following pie chart demonstrates share of different North American countries in India’s total export during

April- February 2016-17.

Fig3: India’s engineering export share to North American Countries (%) in April- February 2016-17

Source: DGCI&S

Country wise India’s engineering exports to North America in April – February 2016-17

1. USA Indian engineering exports to USA, continues to be one of the highest during April-February 2016-17. At present, it

accounts for 10.8 per cent of India's engineering exports.

Top products traded in USA: Iron and steel, auto components/parts, electrical machinery and equipment, aircrafts and space crafts, industrial machinery, other misc. items, etc. 2. Mexico Mexico is presently India's 5th largest export destination for engineering products moving up from the 8th rank

during the last fiscal 2015-16. At present, it accounts for 3.8 per cent of India's engineering exports during April-

February 2016-17.

Top products traded in Mexico: Motor vehicles/cars, aluminium and products, auto components and parts, iron and steel, industrial machinery, two and three wheelers, etc. 3. Canada

4%

25%

71%

CANADA MEXICO U S A

Canada accounted for 0.7 per cent of India's total engineering exports in April-February 2016-17.

Top products traded in Canada: Products of iron and steel, auto components/parts, other misc. items, iron and steel, machinery for ATMs, aircrafts and space crafts, electrical machinery and equipment, industrial machinery, aluminium and products, etc.

As Trump quashes TPP, Canada pushes pact with India

Canada is calling on India to fast-track a proposed bilateral free trade agreement (FTA). This is part of Canada’s

attempts to strengthen ties with Asia following the decision of US President Donald Trump to pull out of the

ambitious Trans Pacific Partnership (TPP), of which the country was a part.

Canadian International Trade Minister François-Philippe Champagne is scheduled to meet his Indian counterpart

Nirmala Sitharaman on Friday to take forward negotiations on the FTA, called the Comprehensive Economic

Partnership Agreement (CEPA).

Source: http://www.bilaterals.org/?as-trump-quashes-tpp-canada-pushes

Renewables row: US blocks India at WTO on localization issue India’s request for a dispute settlement panel against the US for incentivizing use of domestic over imported goods in its

renewable energy programmes was taken up by the World Trade Organization on Monday.

The move, however, was blocked by the US, which said that it had not flouted norms.

“The US' move of blocking the panel was expected. Now we will have to put in our panel request again. The WTO will

have to oblige the second time as per rules. We are quite confident of a favourable ruling,” a Commerce Ministry official

said.

Source: http://www.thehindubusinessline.com/economy/policy/renewables-row-us-blocks-india-at-wto-on-

localisation-issue/article9552230.ece

India beats Canada, EU in internal trade: Economic Survey

When the GST proponents talk of 'one tax, one market, one India' as the aim for the national levy, the Economic

Survey 2016-17 has found that India's internal trade is already quite robust.

"India's aggregate interstate trade (54 per cent of GDP) may not be as high as that of the United States (78 per cent

of GDP) or China (74 per cent of GDP) but substantially greater than provincial trade within Canada and greater

than trade between Europe Union (EU) countries (which is governed by the "four freedoms": allowing unfettered

movement of goods, services, capital, and people)," it says.

Source: http://economictimes.indiatimes.com/news/economy/indicators/india-beats-canada-eu-in-internal-

trade-economic-survey/articleshow/56891607.cms

India rejects EU, Canada’s attempts for global investment agreement

India will not allow investment to become part of any global agreement that allows investors to challenge

governments in an international tribunal, commerce and industry minister Nirmala Sitharaman said on Monday.

News in Focus

“We have said no to any investment agreement in which companies can challenge governments,” she said after an

informal meeting with ministers from Canada and EU in Davos last week.

Source: http://economictimes.indiatimes.com/news/economy/foreign-trade/india-rejects-eu-canadas-attempts-

for-global-investment-agreement/articleshow/56737494.cms

Free-trade agreement with India a ‘high priority’ for Canada Federal Liberal Infrastructure Minister Amarjeet Sohi, fresh off a trade promotion trip to India, says a free-trade

agreement with India “is high priority for our government.”

But for all the talk, it’s clear that any free trade with India remains a long way off.

Talks began with fanfare under the Conservative government led by Stephen Harper but quickly slowed as officials

haggled over investor protections and thorny issues such as access for Indian temporary workers, skilled workers and

visitors to Canada.

That turtle pace continued despite Justin Trudeau’s mandate letter to his former international trade minister Chrystia

Freeland setting out “the development of a targeted strategy to promote trade and investment with emerging markets,

with particular attention to China and India,” as a goal for his government.

Source: https://www.thestar.com/news/canada/2017/01/19/free-trade-agreement-with-india-a-high-priority-for-canada.html

Table 4: CVD/AD Petitions Docket No. Received Type Commodity

3207

3/21/17 337 Complaint Thermoplastic-Encapsulated Electric Motors

3197 2/6/17 337 Complaint Electrical Connectors

3196 2/02/17 337 Complaint Hybrid Electric Vehicles and Components Thereof

3176 9/20/16 701 & 731 Petition Steel Concrete Reinforcing Bar

3168 8/16/16 337 Complaint Personal Transporters

3161 6/30/16 701 & 731 Petition Finished Carbon Steel Flanges

3150 5/23/16 337 Complaint Semiconductor Devices and Semiconductor Device Packages

3148 5/18/16 337 Complaint Personal Transporters, Components Thereof, and Packaging and Manuals Therefor

3144 4/26/16 337 Complaint Carbon and Alloy Steel Products 3142 4/18/16 Other Primary Unwrought Aluminum

3138 4/11/16 337 Complaint Passenger Vehicle Automotive Wheels

3136 4/8/16 701 & 731 Petition Carbon and Alloy Steel Cut-to-Length Plate 3129 3/22/16 337 Complaint Motorized Self-Balancing Vehicles 3124 2/24/16 332 Request Unwrought and Wrought aluminum products

Source: http://www.usitc.gov/petitions_and_complaints

CVD/AD matters: Recent petitions filed with USITC

Table 5: Country wise Anti-Dumping (AD) Cases against India Country

initiating AD investigatio

n

Case ID Case Code Product Initiating

Date Dumping

Date Injury

decision date

Canada CAN-AD-

373 CAN-AD-

372 Certain Carbon Steel Welded Pipe

5/14/2012 8/13/2012 7/13/2012

Canada CAN-AD-

401 CAN-AD-

400 Certain Oil Country Tubular Goods

7/21/2014 12/3/2014 9/19/2014

Canada CAN-AD-

410 CAN-AD-

410

Certain Hot-rolled Carbon Steel Plate and High-strength Low-alloy Steel Plate

6/10/2015 9/8/2015 8/10/2015

Mexico MEX-AD-

305 MEX-AD-

305 Carbon Steel Tubing with Longitudinal Seams

12/24/2014

MI MI

Mexico MEX-AD-

314 MEX-AD-

314 Ferro-silico-manganese 9/8/2015 MI MI

USA USA-AD-

1191 USA-AD-

1191 Circular Welded Carbon-Quality Steel Pipe

11/3/2011 6/1/2012 12/16/2011

USA USA-AD-

1213 USA-AD-

1213 Certain Steel Threaded Rod 7/3/2013 2/18/2014 11/5/2013

USA USA-AD-

1215 USA-AD-

1215 Certain Oil Country Tubular Goods

7/10/2013 2/25/2014 8/22/2013

USA USA-AD-

1251 USA-AD-

1251 Certain Steel Nails 6/4/2014 . 7/18/2014

USA USA-AD-

1275 USA-AD-

1274 Certain Corrosion-Resistant Steel Products

6/9/2015 MI 7/24/2015

USA USA-AD-

1285 USA-AD-

1283 Cold-Rolled Steel Flat Products

8/3/2015 MI 9/17/2015

USA USA-AD-

1298 USA-AD-

1298 Welded Stainless Steel Pressure Pipe

10/7/2015 MI 11/20/2015

Table 6: Safe Guard Matters of India

Safe Guard Initiating Country

PRODUCT PET_DATE WTO_INIT_D

ATE

India Seamless Pipes, Tubes and Hollow Profiles of Iron or Non–Alloy Steel MI 04/22/2013

India Cold Rolled Flat Products of Stainless Steel of Chromium Type MI 09/19/2014

India Not-Alloyed Ingots of Unwrought Aluminium MI 04/07/2014

India Hot-rolled Flat Products of Non-alloy and Other Alloy Steel in Coils of a width of 600 mm or more

MI 09/07/2015

India Hot-rolled Flat Sheets and Plates (excluding hot rolled flat products in coil form)

MI 12/7/2015

Source:

http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTTRADERESEARCH/0,contentMDK:22561572~pagePK:64168182~piPK:64168060~theSitePK:544849

,00.html

India’s Safe Guard initiating matters since last six years (2010-2016)

Country wise Anti-dumping matters in the last six years (2010-2016) against India

On January 27, 2017, the Department of Commerce (Commerce) announced its affirmative preliminary

determinations in the antidumping duty (AD) investigations of imports of finished carbonsteel flanges

from India, Italy, and Spain.

Source: http://enforcement.trade.gov/download/factsheets/factsheet-multiple-finished-carbon-steel-

flanges-ad-prelim-012717.pdf

On November 22, 2016, the Department of Commerce (Commerce) announced its affirmative

preliminary determination in the countervailing duty (CVD) investigation of imports of finished carbon

steel flanges from India.

Source:http://enforcement.trade.gov/download/factsheets/factsheet-india-finished-carbon-steel-

flanges-cvd-prelim-112216.pdf

On October 25, 2016, the United States International Trade Commission (USITC) determined that a U.S.

industry is materially injured by reason of imports of welded stainless steel pressure pipe from India

that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the

United States at less than fair value.

Source: https://www.usitc.gov/press_room/news_release/2016/er1025ll676.htm

On September 23, 2016, the Department of Commerce (Commerce) announced its affirmative final

determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports

of welded stainless pressure pipe from India.

Source: http://enforcement.trade.gov/download/factsheets/factsheet-india-welded-stainless-

pressure-pipe-ad-cvd-final-092316.pdf

On September 2, 2016, the United States International Trade Commission (USITC) announced its

determinations in its antidumping and countervailing duty investigations concerning imports of cold-

rolled steel flat products from Brazil, India, Korea, Russia, and the United Kingdom that the U.S.

Department of Commerce (Commerce) has determined are sold in the United States at less than fair

value and subsidized by the governments of Brazil, India, Korea, and Russia.

Source: https://www.usitc.gov/press_room/news_release/2016/er0902ll649.htm

Table 7: List of Exhibitions

Events Date Venue Link

National Hardware Show 9th- 11th May,2017 Las Vegas

Convention Center

http://www.nationalhardwareshow.com/

Factsheets on Antidumping Duty and Countervailing Duty Investigations of Imports

Upcoming Exhibitions in North America

Table 8: Tender related information Title Deadline Country Link

Furnishing And Delivery Of Grounds

And Turf Equipment (TI Ref ID: 38812128)

02 May 2017

United States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38812128

Oem Caterpillar Parts - 4c-4869 & 5p-

3712 (TI Ref ID: 38840782)

10 May

2017

United

States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38840782

Ground And Elevated Observation Post Kits (TI Ref ID: 38811379)

16 May 2017

Canada http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38811379

Provision Of Nut, Heavy, Hexagon (TI

Ref ID: 38803150)

08 May

2017

United States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38803150

Provision Of Duplexer-mixer. (TI Ref ID: 38662752)

17 May 2017

United States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38662752

Two Cnc Lathes In Accordance With Dla-

a-vibb-17-25-1000/1017 (TI Ref ID: 38819530)

05 May 2017

United States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38819530

Supply Of Cnc Machine-wood (TI Ref ID:

38785055)

16 May

2017

Canada http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38785055

Trailer Mounted Centrifuge Dewatering

System (TI Ref ID: 38820375)

02 May

2017

United

States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38820375

Encoder Shaft Angle (TI Ref ID: 38764158)

22 May

2017

United

States

http://alliances.tendersinfo.com/eepc/awlog.php?action=details&id=38764158

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**********************************************

Society for the Advancement of Material

Process Engineering 22nd-25th May, 2017

Washington Convention Center

Seattle, WA

http://www.nasampe.org/events/EventDetails.aspx?id=621210&g

roup=

Windpower 22nd-25th May, 2017 Anaheim

Convention Center Anaheim, CA

http://www.windpowerexpo.org/

Tender information in North America

EEPC India North America Territorial Newsletter Contact: Priyanka Chakraborty

Email: pchakraborty@eepcindia.net Phone no: 033-40120362