US trade deal: Government looks at duty cuts by both sides
NEW DELHI: The government, which is hoping to clinch the early tranche of a bilateral trade deal with the US before July 9, asserted on Monday that it is looking at a "preferential and sustained advantage" through a reduction in duty by both sides.
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"If trade has to be doubled to $500 billion, both sides have to reduce tariffs for better market access. It should be the endeavour of both countries to lower the tariffs. To what extent they have the legal authority to do so, that will depend upon their outlook towards trade," a senior official said.
When asked about the trade deal, commerce secretary Sunil Barthwal said that officials from both sides were engaged in negotiations, and they have made good progress.
"We are working on the early tranche and as you are aware that there is a date (July 9), before that we would like to conclude this early tranche."
For India, a key concern is the mechanism through which the US will lower duties as absence of the US Fast Track Trade Authority may delay the proposed trade agreement. An official said that it is up to the US authorities to decide how to navigate through local regulations.
The US Fast Track Trade Authority is a special mechanism that allows the American President to negotiate trade agreements and present them to Congress for an up-or-down vote, without amendments or procedural delays.
Officials said the US and India were looking at a different product mix under the proposed agreement with New Delhi focusing on lower-duty access for its labour-intensive products in return for offering concessions for American automobiles and some farm products. The two countries are also targeting a bilateral trade pact by Fall (Sept-Oct).
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