U.S. Secretary of Commerce Howard Lutnick urges India to consider a broad FTA that would reduce tariffs across the board rather than focusing on individual products. With the implementation of reciprocal tariffs looming, both nations are set to negotiate a bilateral trade agreement by October. Challenges remain, particularly around India’s high tariffs and agricultural sector restrictions.
U.S. Secretary of Commerce Howard Lutnick emphasized the Trump administration’s desire for a comprehensive free-trade agreement (FTA) with India. He prefers a broad agreement reducing tariffs across multiple sectors rather than lengthy negotiations focused on individual products. Lutnick stated, “Let’s bring India’s tariff policy towards America down, and America will invite India in to have really an extraordinary opportunity and relationship with us” during the India Today Conclave.
His comments followed a meeting with Commerce Minister Piyush Goyal, who visited Washington from March 4-6, just before the U.S. planned to implement reciprocal tariffs starting April 2. India seeks relief from these tariffs, and both countries aim to negotiate a bilateral trade agreement (BTA) by October, though Trump’s administration appears hesitant to offer concessions.
Lutnick envisioned that the evolving U.S.-India relationship depends on India lowering its high tariffs, which he described as among the highest globally. He remarked, “How you treat us is how we would like to treat you,” indicating the need for a balanced trading relationship.
Despite India’s apprehensions regarding agricultural market access, Lutnick encouraged openness in trade discussions, suggesting that all products should be included in negotiations. He remarked, “The right way to do trade… is to put everything on the table.”
Lutnick pointed out that current tariffs by the U.S. are only “temporary” and are designed to change the dynamics of trade. He rejected the idea that tariffs cause inflation, attributing it instead to deficits and excessive money printing. He noted that India’s effective tariff on U.S. goods stands at 9.5% compared to just 3% for Indian exports to the U.S.
Secretary Lutnick’s advocacy for a broad trade agreement underscores the need for India to reconsider its tariff structures in relation to the U.S. The prospective bilateral trade agreement aims to foster deeper economic ties, although challenges regarding agriculture and current tariff disputes remain. Balancing tariffs and fostering open negotiations are essential for enhancing the U.S.-India trade relationship.
Original Source: www.business-standard.com
