The new FTP will cover any fresh imposition of non-tariff barriers by importing nations after a shipment has left Indian shores

Exporters may soon be able to get insurance cover for some losses suffered on account of countries’ sudden imposition of barriers to trade, under the new Foreign Trade Policy (FTP), which also envisages the formation of a “whole of government” ministerial panel to address the grievances of small exporters.

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The government will expand the definition of “political risk” under the export guarantee scheme to cover any fresh imposition of non-tariff barriers by importing nations after a shipment has left Indian shores.

Typically, the Export Credit Guarantee Corporation (ECGC) indemnifies exporters for losses when buyers turn insolvent or default on payments, as well as political risks like war and sudden import restrictions or promulgations of laws or decrees, but does not cover anti-dumping steps or non-tariff barriers.

“Some of the anti-dumping measures or non-tariff barriers introduced after a shipment has been made, will come under the purview of the political risk,” the new FTP states.

Source : thehindu.com/news/For More Details