102nd Day Of Lockdown

Maharashtra1929901046878376 Tamil Nadu102721583781385 Delhi92175630072864 Gujarat34686249411905 Uttar Pradesh2579717597749 West Bengal2048813571717 Telangana2046210195283 Karnataka197108807293 Rajasthan1878515043435 Andhra Pradesh169347632206 Haryana1550911019251 Madhya Pradesh1410610815589 Bihar10911821184 Assam8956583212 Jammu and Kashmir76954856105 Odisha7316535333 Punjab56683989149 Kerala4594243626 Uttarakhand2791190937 Chhatisgarh2339193713 Jharkhand2339160512 Tripura140110931 Manipur13166390 Goa11984783 Himachal Pradesh9796179 Puducherry73930112 Nagaland5351820 Chandigarh4463676 Arunachal Pradesh182601 Mizoram1601230 Sikkim101520 Meghalaya50421
Business Economy 29 Aug 2018 Tariff wars have put ...

Tariff wars have put global trade at serious risk, says Panagariya

Published Aug 29, 2018, 2:42 pm IST
Updated Aug 29, 2018, 2:42 pm IST
Exports to the US in 2016-17 stood at USD 42.21 billion, while imports were USD 22.3 billion.
Former Niti Aayog vice chairman Arvind Panagariya.
 Former Niti Aayog vice chairman Arvind Panagariya.

New Delhi: Former Niti Aayog vice chairman Arvind Panagariya has said that the recent import tariff hikes by the US and retaliation by China and Europen Union have placed the future of the multilateral trading system at serious risk.

He also said that there is nothing wrong in Indians depositing money in banks abroad as long as they have paid their taxes on it.


On the ongoing global tariff wars, Panagariya praised the Indian government for not imposing retaliatory tariff on US products as it could impose bigger injury on the nation.

"There is no doubt that recent tariffs by the United States and retaliation by China, EU and other countries have placed the future of the multilateral trading system at serious risk.

"For the first time, I feel that we may descend into the kind of protectionism the global economy experienced during the inter-war years. We in India need to stay course, however," he told PTI in an interview.

Currently a professor of economics at Columbia University, Panagariya said India should not indulge in the protectionism. He resigned as Niti Aayog VC last year to return to academics.

"I admire our government for keeping away from any retaliatory tariffs of our own...any retaliation we do will inflict bigger injury on us than did the US steel and aluminum tariffs," he opined.

He argued that India can escape the injury from the US tariffs by selling the country's steel and aluminum to other countries or using it ourselves.

"But we cannot escape the injury from our own retaliatory tariffs," he insisted.

On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items following which China and EU hit back by imposing retaliatory tariffs against the American products.

India has said the duty imposed by the US has affected steel exports by USD 198.6 million and aluminium shipments by USD 42.4 million.

India has also dragged the US to the World Trade Organisation's (WTO) dispute settlement mechanism over the imposition of import duties on steel and aluminium.

India exports steel and aluminium products worth about USD 1.5 billion to the US every year.

Exports to the US in 2016-17 stood at USD 42.21 billion, while imports were USD 22.3 billion.

Replying to a question on rising deposits of Indians in Swiss banks by about 50 per cent after demonetisation in November 2016, Panagariya said there is nothing wrong with the deposits rising as long as they are legal.

He pointed out that at the peak in 2006, Indians deposited USD 6.46 billion in Swiss accounts.

In 2017, this amount was USD 1.02 billion and even in 2013, the amount was USD 2.03 billion.

"So the rise in 2017 notwithstanding, deposits in Swiss accounts are very much on a declining trend," Panagariya asserted.

"Holding deposits abroad by Indians is not a crime as long as they pay taxes due and deposit funds abroad through legal channels," he added.

Location: India, Delhi, New Delhi