India’s timeline of March 2 for imposing retaliatory duties on US items in response to U.S. duties on its steel and aluminium is likely to be postponed by a few days and an India-US trade deal is expected to be wrapped up soon. A government official told media that the Commerce Ministry and the US Trade Representative's (USTR) office may soon announce a trade deal to address the issue of import duties on steel and aluminium from India imposed by the U.S. In March 2018, the US imposed stiff tariffs of 25 per cent on steel and 10 per cent on aluminium imported from India and a number of its trade allies citing national security.
The deal will also cover better trade opportunities for certain agriculture and dairy products in both countries brought about by removing non-tariff barriers, including lowering standards.
“There are talks of postponing the imposition of retaliatory duties by another 15 days as a deal seems very likely,” the official said.
The action is in the line of the negotiations towards a trade deal between both the countries. Trump administration has been putting pressure on India to increase imports from the US to bridge the trade deficit between the two countries. The country is demanding greater market access in areas like dairy, agriculture, energy and health equipment.
India has worked towards it by buying oil and gas worth an estimated $3 billion from the U.S. in 2018 and the purchase from the U.S. will be increased further in 2019 to bring down the trade deficit further, the official confirmed.
According to the ‘Trade Estimate 2018’ released by the USTR, the trade deficit between India and the US decreased by almost six per cent in 2017 to US$22.9 billion. New Delhi has been delaying imposition of retaliatory tariffs on 29 items from the US expecting an amicable trade solution with the U.S.
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