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Assistant US Trade Representative Mark Linscott will be in New Delhi next week to brainstorm with Commerce Ministry officials on ways to minimise trade-related tensions that have intensified between the two nations over recent months.
“Tricky issues such as higher tariffs on Indian steel and aluminium imposed by the US, the US’ trade deficit with India, restoration of GSP benefits for India and the tightened work visa rules hurting the Indian IT industry in the US are likely to be discussed,” a government official told BusinessLine .
Linscott will be in New Delhi on June 26-27 for a two-day meeting with Indian officials which follows Commerce and Industry Minister Suresh Prabhu’s meeting with US Trade Representative (USTR) Robert Lighthizer, Secretary of Commerce Wilbur L Ross and Secretary of Agriculture Sonny Perdue earlier this month in Washington.
“Both India and the US had a long list of agenda items at the Commerce Minister’s meeting with the USTR and the Secretaries of Commerce and Agriculture. It was decided that attempts would be made to sort out the concerns of both the sides in follow-up meetings between officials. The meeting in New Delhi next meeting will be the first of such meetings,” the official said.
The US’ refusal to extend the Generalised System of Preferences (GSP) scheme under which about 3,500 items from the country get duty-free access to the Indian market without carrying out a review has also upset India.
Moreover, the country put India on a ‘watch-list’ of countries with “potentially questionable foreign exchange policies’ with China and four other countries.
What US wants
The US, on the other hand, wants India to take more measures to reduce its trade deficit with the country. It wants the price caps on medical equipment to be removed and India to start importing dairy items from the country.
US President Donald Trump has also sought zero duty on import of the country’s iconic bike, Harley Davidson.
The US is India’s largest export destination and the second largest source of imports after China.
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