‘Zero-for-zero tariff not possible between India-US’

PM Narendra Modi (L) with US Prez Donald Trump. File Pic/PTI

A ‘zero-for-zero' tariff strategy under the proposed bilateral trade agreement between India and the US is unlikely, as the two countries are at different levels of economic development, official sources said. Certain trade experts have suggested that India can propose a ‘zero-for-zero' tariff strategy to the US for addressing America's reciprocal tariff hikes.

An official said that the India-US agreement will always be a "package" deal that could include issues such as goods and non-tariff barriers, adding "it does not happen like this that if he will do ‘zero' in electronics, we will also do in electronics. Trade agreements do not happen like this. ".

India and the US have been engaged in negotiating a bilateral trade agreement (BTA) since March. Both sides have targeted to conclude the first phase of the pact by fall (September-October) of this year with an aim to more than double the bilateral trade to $500 billion by 2030.

"The work has started for the agreement. India is far ahead of other countries in negotiating a trade deal," the official added. In February, Delhi-based think tank GTRI suggested that India should propose a zero-for-zero tariff strategy to the US for addressing America's tariff hikes.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever