India-US Trade Deal On A Brighter SideTop Stories

October 09, 2019 05:43
India-US Trade Deal On A Brighter Side

(Image source from: www.hindustantimes.com)

Following the connects with Russia for the ammunition, people were skeptical whether or not the same will end up affecting the India-US trade deal. With the latest reports, it can definitely be concluded for a fact that the same won’t necessarily hinder through the India-US relations, especially with prospects of the trade.

The early conclusion of the India-US trade deal with each of the sides reducing their possible lingering animosity and differences and working better shipping of the goods among both the countries. This has been done without cutting import duty on the contentious items including some of the pricey Harley Davidson bikes.

Following this, the further assessment of the gains considering the duty benefits as well as the trade volumes are being looked into. A clear and explained announcement is expected to be made in the coming few weeks itself.

There also have been a number of discussions on this trade package being revealed to the public eye and the community during the next meeting that is all set to be conducted between the PM Narendra Modi and President Donald Trump.

The exact dates of the same are still been talked about mainly because of the fact that the United States is entering its election season pretty soon. This may end up with the announcement being made by the coveted commerce and industry minister Piyush Goyal in collaboration with US trade representative Robert Lighthizer.

According to the reports by Times of India, they suggest that a deal did arrive on high-end, patented and innovative heart stents along with knee implants which have been an alarming prospect in the United States. The problem arose when the government started buying them under the price control.

In the future, medical devices which are bought under the price control or even the ones with capped trade margins may technically not enjoy the benefits of the carve outs.

In return of that, USA is going to provide with salient duty benefits for some of the Indian exports under the much coveted Generalised System of Preferences (GSP) programme which was priorly withdrawn and revoked by the Trump administration earlier this year. The same was done when the Indian administrations invoked retaliatory tariffs on several of the American goods including food items like apples, almonds and walnuts.

A few of the farm products like Indian mangoes as well as pomegranates are all expected to get a much easier access to the United States. New Delhi, on the other hand, is all set to address the import surrounding the import of the alfalfa hay.

India had time and time indicated to the United States about its willingness to address multiple of the issues. But, the empathetic mandate to PM Narendra Modi along with the detailed negotiations that were made between Goyal and Lighthizer since the last three months have further strengthened the trade relations even better, a source said.

Both the governments are working on sorting through their negotiations keeping a broader spectrum and thought process in mind. The same isn’t done with the sole trade deficit in mind but will definitely include further thoughts put into it for the goals between the two nations in the long run.

A senior source suggested saying that US has been an ally for India in a number of cases, terrorism, J&K membership to Nuclear Supplies group being some of the most common prospects.

The India-US trade deal is currently in the works, there are some factors that are not sitting right with both the nations. India offered to reduce the import duties on some of the high end ICT products but US isn’t willing to abide by the same.

By Somapika Dutta

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