India's tariff rate is 'unjustified': US commerce secretary Wilbur Ross
Wilbur Ross
The US wants India to eliminate trade barriers for American companies and remove restrictions with regard to data localisation to cut the cost of doing business, visiting US Commerce Secretary Wilbur Ross said on Tuesday.
Speaking at US govt backed business event "Indo-Pacific Trade winds", Wilbur Ross Said, “today India is only the America's 13th largest market due to overly restrictive market access barriers. The US is India's largest export market, that is a real imbalance"
India's average applied tariff rate is 13% with a tariff on auto at 60%, bikes at 50% & Alcohol at 100%.
Calling it "unjustified", Ross said, "US businesses face significant market access barriers in India. These include both tariff and non-tariff barriers, as well as multiple practises and regulations that disadvantage foreign companies."
But assured US companies that Washington is "working diligentlywith Indian govt" on market access, he explained, "goal is to eliminate barrier" for US companies including on data localization, that "weakens data security and increases the cost of doing business".
Ross who is on a two day India visit raised the matter with Prime Minister Narendra ModiandCommerce minister Suresh Prabhu during a bilateral meet.
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Bilateral trade last year between India and the US stood at $142 billion, up to $16 billion from 2017. US exports of goods to India increased by 7.4 billion, to 33% but imports increased by 12% to 54 billion, representing trade deficit of $ 21 billion for the US, something that is irking trump administration.
India has been trying to reduce its trade deficit with the US. India is importing $4.5 billion worth of US crude and natural gas. Indian private airlines have placed orders for around 300 Boeing aircraft to be delivered over the next 5 to 7 years that are worth around $ 39 billion and will create 130,000 American jobs.
Ross though reaffirmed India US ties and said "Make America Great Again (MAGA)" needs to be rephrased to MAGWIC (Make America Great Again With Indian Corporations).
He also emphasised on New Delhi's important role in Indo-Pacific. He said, "Indo-Pacific is strategically and economically significant... India is key to the administration approach to Indo-Pacific".