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India-US deal to include ‘zero’ tariffs on ‘vast’ agricultural goods? Details
India-US deal to include ‘zero’ tariffs on ‘vast’ agricultural goods? Jamieson Greer reveals details
US trade representative Jamieson Greer said on Tuesday that India's average industrial tariff of 13.5% would “go to zero” on “virtually” all goods. He claimed agricultural tariffs would also be cut to zero for several goods.
Greer's statement came as India and the US work to “memorialising” the trade agreement announced on Monday with India.
Details of the US-India trade deal began emerging after US President Donald Trump announced the major breakthrough on the TRUTH social media platform. Here's what reports claim:
India-US trade deal: New details emerge
1. US Trade Representative Jamieson Greer told CNBC in the interview that India agreed to reduce tariffs on US exports and that India's industrial goods tariffs will go to zero from 13.5%.2. Greer mentioned that the deal will allow India to maintain some agricultural import protection. He said in the interview that the US would continue to work on access to certain protected areas of India's agriculture sector.
He, however, said India's tariffs “for a variety of things, you know, tree nuts, wine, spirits, fruits, vegetables, etc, they're going down to zero.” The official did not mention rice, beef, soybeans, sugar or dairy, which are commodities that India excluded from its recent trade deal with the European Union.
3. Sources told the Hindustan Times (HT) that the India-US trade deal exempts Indian dairy and “sensitive” agriculture items from its ambit.
4. As per the HT, the deal also provides for zero-duty access to over $40 billion worth of Indian goods, and reduces customs duties on labour-intensive Indian merchandise such as textiles, leather goods, marine products, chemicals, and certain agricultural items, including processed food.
5. Besides, the Indian Express learnt that India committed to purchasing $100 billion worth of US products annually for five years, which will largely include aircraft, technology items, precious metals, oil, nuclear products and agricultural goods.
6. Sources told Indian Express that while India has opened its agriculture sector to a wide category of products, it has maintained protection on genetically modified (GM) products, soya meal, poultry, maize, cereals, and corn.
7. As per the report, quota access has been given in cotton, pulses, chestnuts, onion among a range of other items. They added that Delhi has given market access to products, such as apples, that are already open for other countries.
8. However, Union Commerce and Industry Minister Piyush Goyal said on Tuesday that the sensitive agriculture and dairy sectors are fully protected in the India-US trade deal.
What did Donald Trump say on India-US trade deal
Sharing limited details of the "historic" trade deal between the US and India, President Trump said on Monday that he spoke with Prime Minister Narendra Modi, and that the latter "agreed to stop buying Russian Oil."Trump said, “...we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%.”
India will likewise move forward to reduce their tariffs and non-tariff barriers against the US, to zero, Trump said.
The US President added that PM Modi also "committed to 'BUY AMERICAN,' at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products."
While PM Modi confirmed the tariff cut to 18 percent, a joint statement on the exact tenets of the deal is awaited. So far, India has offered no confirmation on stopping Russian oil import or "buying American."
When will the India-US deal be implemented?
Most of the provisions of the deal will come into force after the joint statement, a source told HT. "Some of them could have certain specific timelines,” they added.Another source said the deal has already been negotiated in a structured manner, so it will be implemented expeditiously.
The governments of both sides are finalising a joint statement, which will formalise the contours of the deal. Subsequently, the two sides will seal the deal after legal scrubbing.
Source: LiveMint
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