India, US discuss trade ties

Amid rising trade tensions, India and US officials met in New Delhi for the first time on Friday since the US withdrew duty-free benefits to Indian exporters, while India imposed retaliatory tariffs on imports from US.

The commerce ministry stated that assistant US trade representative (USTR) Christopher Wilson was on a visit on 11-12 July to “explore potential for enhanced bilateral trade and economic engagement with India under the new government”.

Additional secretary in the commerce ministry Sanjay Chadha led the talks for India. “The meeting was cordial and aimed at providing a new impetus to bilateral trade and commercial ties, in line with the mandate given by Prime Minister (Narendra) Modi and President (Donald) Trump during their meeting at Osaka, Japan, on 28 June,” the statement added.

The statement said both countries discussed broad contours of bilateral trade and commercial ties and “agreed to continue their discussions for achieving mutually beneficial outcomes aimed at further growing the economic relationship and addressing mutual trade concerns”.

On Tuesday, ahead of the official-level trade talks, President Donald Trump had warned India that its high tariff regime was not acceptable to the US.

“India has long had a field day putting Tariffs on American products. No longer acceptable!” Trump tweeted on Tuesday.

Trump has often termed India a “tariff king” and repeatedly pointed to the 50% duty it imposes on imports of Harley-Davidson motorcycles.

Ahead of the talks on Friday, speaking at the Second Leadership Summit of US India Strategic and Partnership Forum (USISPF) in Washington, deputy USTR Jeffrey D Gerrish said that president Trump and USTR Robert Lighthizer are frustrated with lack of balance and reciprocity in the India-US trade relationship. “I think, we are at a pivotal juncture here in our relationship and at a critical intersection between a frustrating last few years that we have had and a possible future relationship that at this point is not really defined and is still being tested,” PTI reported quoting Gerrish.

India has imposed retaliatory tariffs on 28 US products, including almonds and apples, starting 5 June, a year after announcing them to counter the increase in steel and aluminium tariffs by the US and the withdrawal of duty-free benefits to Indian exporters. Following the move, the US raised the dispute at the World Trade Organization (WTO). India also raised customs duties on a host of products, including alloy steel and auto parts, in the budget presented on 5 July.