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China have to talk to India before approaching WTO: Pillai

business Updated: Feb 06, 2009 10:30 IST

China will have to seek consultations with India on the issue of toy ban if it goes to the World Trade Organisation (WTO).

"There is a procedure through which they have to come.... they have to seek consultations," Commerce Secretary G K Pillai said here at a CII function.

China may drag India to the WTO Dispute Settlement Body contesting ban by India on Chinese toys for six months, Chinese official media had reported on Wednesday.

India had banned import of Chinese toys on January 23. While the Directorate General of Foreign Trade did not cite any reason for the ban, officials said the prohibition was necessary to protect kids from toxic hazards that may be associated with Chinese toys.

It was also perceived here that ban by New Delhi was aimed at providing protection to the domestic industry from the Chinese manufacturers which claimed at least half of Rs 2,500 crore Indian toy market.

China's toy industry has come under close scrutiny since millions of goods were recalled globally last year amid fears that they had been made with toxic lead paints or had dangerous design flaws.

China's toy exports have also taken a beating from the global financial crisis, with demand shrinking in the key US and European markets.