The commerce relation between the US and India stays a high precedence for the Biden administration however the bilateral commerce “never seemed to quite live up to its significant potential”, US commerce consultant (USTR) Katherine Tai mentioned right here on Monday.
In her maiden go to to India as her nation’s chief commerce negotiator, Tai flagged considerations of American “stakeholders” about what they name India’s market entry restrictions, excessive tariffs and restrictive digital commerce measures, and the necessity for a predictable coverage regime. “These are the issues where we intend to make progress. And they will be on top of my list while I am here,” she mentioned. Tai was talking after assembly commerce and trade minister Piyush Goyal and different ministers on Monday.
The revival of the bilateral commerce coverage discussion board assembly on Tuesday after a niche of 4 years will assist preserve tempo with different essential points of the India-US relationship as properly, she added.
Tai mentioned there’s a enormous potential of progress in bilateral commerce, particularly in vital areas, together with digital financial system and agriculture.
The US is India’s largest export market, having made up for outbound cargo of practically $52 billion in FY21. Imports from the US stood at $29 billion final fiscal, because the pandemic hit provide chains.
“High” Indian tariff has all the time been a sore level with the US. India was branded “tariff king” by former US President Donald Trump, who had demanded that New Delhi slash duties on a broad vary of merchandise, despite the fact that the world’s largest financial system turned extra protectionist beneath him.
In response, Indian officers have identified that New Delhi’s utilized tariffs are method under the permissible restrict beneath the WTO framework, or the so-called certain charge (which was 50.8% in 2020). Also, India’s trade-weighted common tariff is way decrease than the easy common one (Washington often highlights solely the latter). Moreover, in contrast to different giant economies, together with the US, India hardly makes use of non-tariff obstacles to crack down on or discourage imports it deems non-essential or sub-standard.
Goyal pitches India as a trusted commerce companion
Speaking earlier than Tai, Goyal highlighted the distinctive process given to each him and Tai by their leaders “to strengthen our economic ties and trade based on transparency and fairness”. “Of course, I am sure you will bear in mind the hugely differing level of prosperity between the people of US and the people of India and the shared vision to work towards mutual prosperity of the people of both our nations,” Goyal mentioned whereas welcoming Tai to India earlier than a dinner hosted by him.
India’s aggressive benefits of value, expert manpower and the large home market, mixed with American innovation and funding, can develop into a profitable partnership, Goyal mentioned.
Goyal mentioned India and the US have realised the need of diversifying vital provide chains and are poised to play an essential position in growing “trusted supply chains with other like-minded nations”. He mentioned, regardless of its personal challenges within the wake of the Covid-19 pandemic, India “didn’t let down any of its international commitment”, highlighting the rationale why the world appears at India as a “trusted” commerce companion.