Want India to eliminate trade barriers for US firms: Wilbur Ross
Commerce secretary raises issue of high tariffs imposed by Delhi on goods.
New Delhi: Visiting United States commerce secretary Wilbur Ross on Tuesday strongly raised the issue of trade imbalances and high tariffs imposed by India on US goods — a subject high on the global agenda of US President Donald Trump — while making it amply clear that he expected New Delhi to address the matter.
Speaking at the “Trade Winds” business conference in the capital, he made it clear that his country’s “goal is to eliminate barriers to US companies, operating here (in India)”. Stating that India’s average applied tariff rate was the highest for any world economy, Mr Ross was scathing in his views on the high Indian tariffs on automobiles, motorcycles, agricultural products, alcoholic beverages and telecom products. He said India is only the 13th largest export market of the US due to “overly restrictive market access barriers” while pointing out that on the other hand “the US is India’s largest export market, accounting for something like 20 per cent of the total”.
He termed it a “real imbalance”, adding that it is one “we must strive to counteract”. On varying tariffs, Mr Ross said these were “not justified percentages” and were “way too high”.
He also said that “in the World Bank’s Ease of Doing Business report, India climbed an impressive 23 spots this year, but it still ranks only 77 out of 190 countries” and that “there’s lots of room for further improvement”.
On the trade imbalance, the US commerce secretary said, “Today, India is only the US’ 13th largest export market due to overly restrictive market acc-ess barriers. Meanwhile, the US is India’s largest export market, accounting for something like 20 per cent of the total. There is a real imbalance! And it’s an imbalance we must strive to counteract.”
Mr Ross said, “As President Trump has said trade relationships should be based, and must be based, on fairness and reciprocity. However, currently, the US businesses face significant market access barriers in India. These include both tariff and non-tariff barriers, as well as multiple practices and regulations that disadvantage foreign companies. India’s average applied tariff rate of 13.8 per cent and that remains the highest of any major world economy.”
“It has, for example, a 60 per cent tariff on automobiles; it has a 50 per cent on motorcycles and 150 per cent on alcoholic beverages. Its bound tariff rates, namely the highest rate they can charge, on agricultural products average and incredible 113.5 per cent and some are as high as 300 per cent. These are not justified percentages. They are way too high,” he added.