India-US Trade Pact Phase 1 Awaits Conclusion of US Section 301 Investigations, Says Official
On June 2, the USTR proposed imposing 12.5 per cent tariffs on 54 countries, including India, for allegedly failing to prohibit the import of goods produced with forced labour: Reports
NEW DELHI: The first phase of the bilateral trade agreement between India and the US can be finalised after the conclusion of Section 301 investigations by the US administration, an official said on Monday.
In March, the US Trade Representative (USTR) launched two unilateral Section 301 investigations against a number of countries, including India, over excess capacity and failures to eradicate forced labour in global supply chains.
On June 2, the USTR proposed imposing 12.5 per cent tariffs on 54 countries, including India, for allegedly failing to prohibit the import of goods produced with forced labour. The report of the second probe (excess capacity) is awaited.
The conclusion of the probe is important, as the temporary 10 per cent additional tariffs imposed by the US will end on July 24. After that, only the MFN (most favoured nation) tariffs will apply on the USA's trading partners. “So, if the US wants us to pay any additional tax...They have to finish the Section 301 process before that,” the official said.
India is seeking lower tariffs than its competitors, like members of Asean (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam), as well as Sri Lanka and Bangladesh.