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U.S. trade negotiators to visit Delhi for more talks
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- Trade negotiators from the Office of the U.S. Trade Representative (USTR) are expected to visit New Delhi by Mid-Nov or End-Nov, to continue discussions with Commerce Minister Piyush Goyal and his team, at least three independent sources, from the Indian and U.S. sides, told The Hindu. This follows Mr. Goyal’s visit to Washington, DC, on 13th Nov for discussions with USTR Robert Lighthizer and his team to progress a limited trade package between the two countries.
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- The visit by Mr. Lighthizer’s deputies to New Delhi was discussed on a telephone call between Mr. Goyal and Mr. Lighthizer on 14 Nov, when Mr. Goyal was back in New York City for industry interactions.
- Key differences between two sides:
(1) Price caps or ‘trade margin rationalisation’ for knee implants and cardiac stents
(2) Generalised System of Preferences(GSP) — a preferential market access programme the U.S. offers developing country partners.
- ‘Unfair treatment’
(1) India’s GSP benefits were revoked in June on the grounds that India had not assured the U.S. that it would provide “equitable and reasonable” access to its markets.
(2) Trump believes the world trading system, and more broadly, the multilateral system, treats America unfairly.
(3) India wants GSP benefits restored but it is unclear whether any limited trade agreement reached between the sides will result in a full or partial restoration of GSP benefits to India.
(4) The extent of GSP restoration has been one of the discussion points between the two sides.
(5) India also has wanted a rollback of tariffs on steel and aluminium imports into the U.S. that Mr. Trump had imposed in 2018 across countries, ostensibly on national security grounds.
- Greater access
(1) Both have wanted greater access for agricultural commodities in each other’s markets.
(2) The U.S has wanted lower Indian tariffs on apples, almonds, and walnuts- as per Business Line.
(3) The U.S. has also wanted tariff concessions on Harley Davidson motorbikes (of symbolic value to Mr. Trump), dairy products and Information Communication and Technology products.
(4) India has been reluctant to move on ICT products, concerned that it would open Indian markets up to a flood of Chinese goods.
- Progress made
Sources
The Hindu