Indian Tariffs Still Pose Challenges, but Obama's New Delhi Trip Marks Positive Steps, Say Industry Reps
Despite close cooperation between the U.S. and India, significant steps are still needed to slash Indian tariffs and strengthen intellectual property protections in the country, said two industry representatives in a Jan. 22 conference call. President Barack Obama is scheduled to travel to New Delhi, India in the coming days to attend the Indian Republic Day celebration on Jan. 26 and address bilateral issues.
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Obama will meet with Indian Prime Minister Narendra Modi, but industry advocates don’t expect the trip to be “deliverable-driven,” said Chris Moore, senior director for international business policy at the National Association of Manufacturers on the conference call, held by the Alliance for Fair Trade with India. Nonetheless, the trip is a sign of improving relations, said Moore and intellectual property expert at the Chamber of Commerce Patrick Kilbride.
The Obama administration still needs to pressure the Indian government to slash a wide-range of duties though, Moore said. “Action is needed to lower Indian tariffs that exceed 100 percent on products ranging from autos to textile to distilled spirits,” said Moore. “India recently has raised tariffs on a number of telecommunications products that we believe are covered by the [World Trade Organization] Information Technology Agreement.” Following months-long bilateral dispute over advancing the WTO Trade Facilitation Agreement in 2014, both countries struck an agreement to move ahead with the pact (see 1411280027).