India takes big step against US as talks over trade deal continue, Modi govt put this…
India Retaliatory Tariff on USA: Taking a big step, the Indian government on Friday proposed retaliatory tariffs against the United States at the World Trade Organisation (WTO). The proposal was made in response to American tariffs on the automobile sector on national security grounds.
India-US Trade Deal
The move has come at a time when both countries are in the advanced stages of inking an initial mini-trade deal. New Delhi had informed the WTO’s Goods Trade Council that it the country will reduce concessions or other obligations on some goods imported from the US in response to tariffs imposed on automobiles on the basis of national security.
New Delhi’s negotiation team, which was led by Special Secretary in the Ministry of Commerce and Industry Rajesh Agarwal on Monday returned to India from US.
Why Did Trump Impose Tariffs As A Safeguard?
On India’s proposal, WTO has said that under the proposed suspension of concessions or other obligations, tariffs on select products which are manufactured in America will increase.
Notably, on March 26, America had imposed a 25 percent tariff on automobiles and auto parts coming from India as a safeguard measure. The tariff came into effect from May 3 this year.
Trump had said that his country has been suffering losses in global trade for several years. He states that this step will strengthen country’s manufacturing sector as there will be less competition from companies of other countries in the US market.
What Was India’s Reply?
The Trump administration imposed tariffs on various automotive and related goods, including light trucks, cars, and numerous components. These tariffs, however, were not registered with the World Trade Organization (WTO). India contends that these tariffs violate the General Agreement on Tariffs and Trade (GATT) 1994 and existing security agreements. Following consultations under Article 12.3 of the WTO’s Agreement on Safeguards, India has reserved the right to retaliate by suspending concessions under Article 8.
News