Talks are going to resume next week regarding the long stalled interim trade deal between India and America. A high-level delegation of the central government will leave for Washington next week. This visit is taking place at a time when trade equations have changed in America due to tariff rules and court decisions. According to PTI report, government sources confirmed this visit of the delegation on Wednesday. The deal was initially expected to be signed in March, but the tariff regime implemented during the Donald Trump administration and a recent ruling by the US Supreme Court have made conditions difficult. The agreement was to be signed in March. Both the countries had prepared the framework for the first phase of the trade agreement in February. Under this framework, America had agreed to reduce the import duty i.e. tariff on Indian goods to 18%. However, soon after this the US Supreme Court canceled some of the old tariff rules imposed by Trump. After this decision of the court, the US administration has imposed 10% tariff on imports from all countries for 150 days from February 24. Due to this lack of clarity, the meeting scheduled last month was postponed. India’s relative advantage reduced: When the framework was prepared in February, India was enjoying a better position than other competing countries. The 18% rate was beneficial for India amid higher tariffs imposed by the US on other countries. But now America has implemented a flat tariff of 10% for all countries. Due to this, India’s special advantage has been reduced, because now every trading partner is getting the same rate of profit. Two investigations are underway under Section 301. This conversation to be held next week will not be limited to tariffs only. The Office of the US Trade Representative (USTR) has recently initiated two separate investigations under Section 301, in which India is also involved… What will be the main agenda of the discussion? In this meeting to be held in Washington, Indian officials will seek clarity on the new tariff structure. India will try to protect the interests of Indian exporters even in the changed circumstances. Also, India will present its stand strongly on the ongoing investigations under Section 301 so that any kind of sanctions can be avoided in future. What is Section 301? This is a part of America’s ‘Trade Act 1974’. Under this, the US government gets the right that if it feels that the trade policies of another country are unfair or discriminatory to American business, then it can investigate it and impose fines or trade sanctions on it. Why is this deal important for India? Also read this news… Wholesale inflation highest in 38 months: It reached 3.88% in March, daily essential goods and fuel became expensive. Wholesale inflation (WPI) has increased to 3.88% in March. It was at 2.13% in February. That means it has increased by 1.75% within a month. Wholesale inflation has also broken the record of 38 months. Wholesale inflation had reached 4.73% in January 2023. Commerce Ministry has released wholesale inflation figures today i.e. on 15th April. Read the full news…
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Talks on India-US trade deal will resume: Indian delegation will leave for Washington next week; New tariff structure will be discussed
