India may again extend retaliatory tariff deadline on US products by 30
daysndia is expected to again extend the deadline by a month to impose
retaliatory import duties on 29 US products, including almond, walnut and
pulses, an official said. The previous extension will end on May 16. The
commerce ministry has asked its finance counterpart to issue a notification
with regard to further extension of the deadline, the official added.
These deadlines were extended several times since June 2018, when India
decided to impose these duties in retaliation to a move by the US to impose
high customs duties on certain steel and aluminium products. This extension
comes in the backdrop of the US decision to withdraw export incentives
being provided to Indian exporters under Generalised System of Preferences
(GSP) programme, which is expected to impact India’s exports to the US
worth USD 5.6 billion under this scheme.
America had given 60 days notice, which ended on May 2 but has yet to
withdraw those benefits. Meanwhile, US Commerce Secretary Wilbur Ross
and Commerce Minister Suresh Prabhu held bilateral meetings on May 6
here to discuss trade-related issues. Further extension of GSP benefits was
part of a trade package being negotiated between the two countries.
However, those negotiations hit a roadblock after the US announced its
decision to roll back GSP benefits from Indian exporters. The US
administration has alleged that India in imposing high import duties on
products such as paper and Harley Davidson motorcycles from America.
India wants US to exempt them from the high duty imposed on certain steel
and aluminium products, provide greater market access for agriculture,
automobile, automobile components and engineering sector products.
On the other hand, the US is demanding greater market access through a cut
in import duties for its agriculture goods, dairy products, medical devices, IT
and communication items. As part of the imposition of higher import duties,
India has notified higher tariffs on several products. While import duty on walnut has been hiked to 120 per cent from 30 per
cent, duty on chickpeas, Bengal gram (chana) and masur dal will be raised to
70 per cent, from 30 per cent currently. Levy on lentils will be increased to
40 per cent. India’s exports to the US in 2017-18 stood at USD 47.9 billion,
while imports were at USD 26.7 billion. The trade balance is in favour of
India.
Source: The Financial Express, India Thursday, 16 May 2019