U.S. Secretary of Commerce Howard Lutnick emphasizes the need for a broad free-trade agreement with India, advocating for comprehensive tariff reductions instead of lengthy product-specific negotiations. Amid impending reciprocal tariffs, India aims to negotiate a bilateral trade agreement by October. Lutnick highlights the necessity for open discussions on various trade issues, including agriculture, while dismissing the link between tariffs and inflation.
The United States Secretary of Commerce, Howard Lutnick, articulated a desire for a broad free-trade agreement (FTA) with India, emphasizing a comprehensive reduction in tariffs rather than engaging in lengthy, product-specific negotiations. During his virtual address at the India Today Conclave, he remarked, “It is time to do something big, something grand, something that connects India and the US together… Let’s bring India’s tariff policy towards America down.” This declaration follows his meetings with Indian officials, highlighting urgency given the impending implementation of reciprocal tariffs by the US starting April 2.
Lutnick’s remarks are significant within the context of bilateral discussions, as both nations strive to establish a trade framework by October. Although India anticipates a reprieve from reciprocal tariffs, Lutnick pointed out that significant changes in tariff strategies are necessary for a more equitable partnership between the two countries. He noted, “How you treat us is how we would like to treat you… that level of balance has to change.”
The ongoing dialogue also touches on agriculture trade, a sensitive topic for India. Lutnick expressed the importance of open market discussions, stating, “The right way to do trade… is to put everything on the table, to do it smartly and do it thoughtfully.” He suggested that flexibility and creativity in negotiations could lead to a successful agreement.
Additionally, Lutnick dismissed concerns that tariffs contribute to inflation, arguing instead that inflation stems from larger economic issues like deficits. He noted the disparity in tariff rates, revealing that India’s average effective tariff on US exports is approximately 9.5%, compared to a mere 3% on Indian exports to the US.
The United States is advocating for a comprehensive trade agreement with India, aimed at reducing tariffs across the board, as articulated by Commerce Secretary Howard Lutnick. This call for a broad approach comes amid negotiations for a bilateral trade agreement set for later this year. The importance of thoughtful discussions on a range of trade issues, including agriculture and tariffs, is underscored, as both nations seek to enhance their economic relationship amidst evolving tariff dynamics.
Original Source: www.business-standard.com
