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Revise trade laws, tariffs: U.S. Ambassador
Why is it in news?
- Calling upon India to rethink trade barriers, tariffs and regulations in order to become a “hub” for innovation and production, U.S. Ambassador Kenneth Juster says that India and the U.S. need to see trade relations as an “important strategic element” of their ties.
More in news
- He made a particular mention of barriers for the technology industry, including a Reserve Bank order telling technology companies to base all their servers in India.
- After rounds of intense trade negotiations since June, India agreed this month to put off until late September its plan to hit the U.S. with retaliatory tariffs worth $ 235 million on 29 American products.
- The action was in response to the U.S. raising tariffs on steel by 25% and aluminium products by 10%, which India has failed to get a waiver on.
- The U.S. is also taking a decision on whether to cancel India’s Generalised Systems of Preferences (GSP) status over the tariffs issue.
- The U.S. Ambassador’s comments are an indicator that trade issues will be highlighted during next month’s “2+2” ministerial engagement between India and the U.S., though the main purpose of the talks is the inaugural engagement of Defence and Foreign Ministers on both sides.a
Source
The Hindu