India and US Collaborate to Enhance Trade Relations and Reduce Tariffs
India and the US are working on a trade agreement to enhance market access and reduce import duties. Minister Jitin Prasada confirmed that as of now, no reciprocal tariffs have been imposed on India by the US. Upcoming talks from March 25 to 29 aim to address these issues, with India considering tariff cuts on a significant percentage of US imports.
On Tuesday, Minister of State for Commerce and Industry Jitin Prasada informed Parliament that India and the United States are collaboratively working to enhance market access, reduce import duties, and eliminate non-tariff barriers. These efforts are part of a proposed trade agreement aimed at boosting supply chain integration between the two countries.
In a written response to the Lok Sabha, Prasada noted that currently, the US has not imposed reciprocal tariffs on India, with a critical deadline set for April 2. This statement comes as US officials are scheduled to visit India from March 25 to 29 for discussions regarding a bilateral trade treaty.
As the deadline approaches, it is pertinent to highlight that US President Donald Trump’s administration has imposed a 25 percent tariff on steel and aluminum imports from all nations, though India has yet to face reciprocal tariffs. The minister emphasized ongoing government efforts to enhance bilateral trade ties in a fair and mutually beneficial manner.
According to a Bloomberg report, the Indian government aims to seek exemptions from these impending tariffs during discussions with the US delegation. The Ministry of Commerce and Industry expressed anticipation for productive negotiations to deepen trade relations.
Furthermore, a Reuters report referenced government strategies to potentially reduce tariffs on over half of the $23 billion worth of US imports. In the initial phase of the trade negotiations, India is considering tariff reductions on more than 55 percent of US imports, aimed specifically to mitigate the effects of reciprocal tariffs.
In conclusion, India and the United States are actively pursuing a trade agreement that focuses on increasing market access and reducing tariffs. The upcoming discussions with US officials aim to foster enhanced trade relations while seeking exemptions from reciprocal tariffs. Moreover, India’s willingness to cut tariffs on a substantial portion of US imports reflects its commitment to maintaining a mutually beneficial trade environment.
Original Source: www.business-standard.com
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