High-level panel for ‘unambiguous’ mandate for negotiations with US

 

India has further informed the US that duty reduction on products such as certain telecom network equipment, smartwatches, high-end mobile phones.

By Pranav Mukul 

NEW DELHI: The issues pertaining to import tariffs on information and communication technology (ICT) equipment, on which the US has sought duty elimination, has reached the highest corridors of the government with an inter-ministerial panel comprising finance minister Arun Jaitley, commerce and industry minister Suresh Prabhu and IT minister Ravi Shankar Prasad discussing the US’ demand at a meeting last week. According to sources, in the high-level meeting, it was discussed that “India may have to take a considered stand on the issue” so that the commerce ministry’s mandate for negotiations with the US is “unambiguous”.

India has been negotiating with the US for a mutually agreeable bilateral package on several contentious trade issues and one of the critical issue which the US Trade Representative (USTR) was pursuing strongly was tariff on ICT products. Wednesday, The Indian Express reported that the commerce ministry had snubbed the US demand to eliminate duties on seven ICT products, on account that factors such as “serious economic constraints” such as rising current account deficit and rupee depreciation “make it difficult” for India to consider the revenue loss arising out of duty elimination. India has further informed the US that duty reduction on products such as certain telecom network equipment, smartwatches, high-end mobile phones costing over Rs 10,000 and some mobile phone parts, will not benefit the US while imposing a “disproportionate and unbearable stress on a “low income country like India at a time of significant economic stress”.

 

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Credit: indianexpress.com