India Index Founder and CEO Samir Kapadia discusses the benefits of President Donald Trump’s trade deal with India on ‘Mornings with Maria’.
The US and India have reached a point interim trade agreement that would lower tariffs for both countries, a joint statement revealed on Friday.
“The Interim Agreement between the United States and India will do that represent a historic milestone in the partnership of our countries and demonstrate a common commitment to reciprocal and balanced trade, based on mutual interests and concrete results,” the statement said.
US Trade Ambassador Jamieson Greer praised the president Donald Trump’s “dealmaking” for the agreement, saying it “unlocks one of the world’s largest economies to American workers and producers, lowering tariffs on all U.S. industrial goods and a wide range of agricultural products.”
He added that Friday’s announcement “demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries.” I thank Indian Minister of Commerce and Industry Goyal for his leadership and commitment to achieving fair and balanced trade with the United States.”
US AND ARGENTINA ENTER BIG TRADE DEAL, LOWER TARIFFS, OPEN MARKETS TO US EXPORTS
President Donald Trump and Indian Prime Minister Narendra Modi shake hands before their meeting at Hyderabad House, February 25, 2020, in New Delhi, India. (AP Photo/Alex Brandon, file / AP Newsroom)
This comes after Trump said on Monday that the US and India had agreed to the trade deal following his phone call with Indian Prime Minister Narendra Modi.
Under the terms of the deal, India will “eliminate or reduce tariffs on all U.S. industrial goods and other food and agricultural products such as animal feed, nuts and fruits.
In return, the US will apply an 18% reciprocal tariff on goods from India, including “textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home furnishings, handicrafts and certain machinery.”
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A billboard in Ahmedabad, India, in 2020 of President Trump, the first lady and Indian Prime Minister Narendra Modi. (Reuters/Amit Dave/Reuters)
Upon successful completion of the interim agreement, the US will also eliminate reciprocal tariffs on other products, “including generic pharmaceuticals, gemstones and diamonds, and aircraft parts,” the joint statement said.
The former 50% tariff on Indian goods was reduced in exchange for India halt to Russian oil purchases and reducing trade barriers.
The port of Deendayal in Kandla in the western state of Gujarat, India. (Reuters/Amit Dave/Reuters)
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The agreement adds that “India plans to purchase $500 billion American energy productsaircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.”
A formal trade agreement between the two countries is expected in March.
