On being asked whether the US imposing “such high tariffs” are in violation of WTO and other UN ratified agreements on tariff and trade and the retaliatory and remedial steps taken by the government, he said: “As an affected member with significant export interest to the US in the products concerned, India requested consultations with the US under Article 12.3 of the WTO Agreement on Safeguards. As consultations did not take place, India notified the WTO Council for Trade in Goods and the Committee on Safeguards that it reserves rights for suspension of concessions under Article 8 of the Agreement on Safeguards.”
India and the US have reached a framework for an interim agreement regarding reciprocal and mutually beneficial trade. The US will provide preferential market access to Indian goods, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products and certain machinery, among others.
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“Subject to the conclusion of the Interim Agreement, the US will reduce additional tariff on India to 0% on a wide range of products, such as gems and diamonds, aircraft parts, generic pharmaceuticals, certain machinery and parts, vegetable saps, certain instruments and apparatus, certain plastic and rubber, certain auto parts, etc,” he said, adding that India has protected its sensitive sectors.
In a separate reply, he said the government continues to work with all stakeholders including exporters and industry to mitigate the impact of the tariff measures of the US on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with Washington for a mutually beneficial India-US Bilateral Trade Agreement.
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On a question on India’s trade with China, he said: “Bilateral trade between India and China is driven primarily by market dynamics and the requirements of domestic industry and consumers”.