U.S. says high Indian tariffs may impact trade ties

New Delhi, Mar.26 (ANI): U.S. Commerce Secretary, John Bryson, on Monday said that high Indian tariffs on the goods manufactured in the United States could cause "meaningful harm" to long-term trade ties.

Bryson said this while addressing a conference organised by Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi.

"It would be a miss, if I would not mention the barriers which still exist in building our economic relationships. For example there are many tariffs on American products that are still too high," said Bryson.

Bryson also urged New Delhi to lower import duties on various items including capital goods and fruits for better trade relations.

"Capital goods such as power generating equipment face a basic duty of 7.5 per cent and effective rate of 22 per cent when taxes are added. Some medical products also have a 7.5 percent rate and grapes, citrus fruits and other fruits face a 30 per cent duty," commerce secretary told reporters.

United States has been asking India to ease restrictions on imports of products like capital goods and medical products in recognition of stronger economic ties between the two countries.

Bryson also talked about India's tough sourcing decisions in sectors like IT, electronics and solar energy having an ill effect on the bilateral trade relations.

He further said that India's failure in lowering import duties then it would cause meaningful harm to the trade relations.

"This makes it harder to invest in India, if India is not able to readily access US products or attract strategic investments from US businesses, our progress together could slowdown and in the long term that could cause meaningful harm," added Bryson.

Bryson also urged New Delhi to join the World Trade Organisation (WTO) Government Procurement Agreement (GPA).

In 2010-11, the bilateral trade stood a $45.6 billion. During April-January (2011-12), the US invested 913 million dollars in India. (ANI)

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