USTR Highlights Trade Concerns with India Over Tariffs and Restrictions
Source: dairynews.today
The United States Trade Representative's (USTR) National Trade Estimate (NTE) Report outlines key trade challenges with India, focusing on high tariffs, non-tariff barriers, and regulatory issues affecting U.S. exports.
On April 1, the United States Trade Representative (USTR) released the National Trade Estimate (NTE) Report, addressing multiple trade and regulatory challenges posed by India's existing policies. The report primarily raises concerns over the high tariffs imposed by India, particularly a 150% tariff on alcoholic beverages and a 100% tariff on walnuts and raisins from the U.S.
These high tariffs make it challenging for American products to remain competitive in the Indian market. The report also highlights India's stringent import restrictions on certain dairy products, requiring them to come from animals not fed with meat, blood, or internal organs. This policy is seen by the U.S. as a significant trade barrier but is defended by the Global Trade Research Initiative (GTRI) as necessary for meeting India's domestic needs.
"While the U.S. continues to pressure India to amend its trade policies to serve American commercial interests, India must firmly assess each demand through the lens of its own national priorities, development goals, and cultural values," stated Ajay Srivastava, Founder of GTRI. India further mandates non-GM and GM-free certificates for 24 products.
The U.S. views this as an unnecessary restriction, while India argues it is crucial for ensuring traceability and consumer confidence. Additional non-tariff barriers include licensing requirements and import bans on specific goods, such as animal-based oils and certain medicines, which India justifies as protecting health, safety, and the environment. In 2024, India ceased issuing licenses for refurbished U.S. medical devices, which the U.S. views as excessive regulation. However, India contends that this is vital to avoid an influx of low-quality second-hand products that may jeopardize consumer safety and the domestic industry.
The USTR's annual report underscores trade policies impacting U.S. exports and investments globally, with India being a primary concern due to its restrictive trading practices. While the United States advocates for reducing trade barriers, India maintains that its policies are essential to safeguard domestic interests and ensure consumer safety.
These high tariffs make it challenging for American products to remain competitive in the Indian market. The report also highlights India's stringent import restrictions on certain dairy products, requiring them to come from animals not fed with meat, blood, or internal organs. This policy is seen by the U.S. as a significant trade barrier but is defended by the Global Trade Research Initiative (GTRI) as necessary for meeting India's domestic needs.
"While the U.S. continues to pressure India to amend its trade policies to serve American commercial interests, India must firmly assess each demand through the lens of its own national priorities, development goals, and cultural values," stated Ajay Srivastava, Founder of GTRI. India further mandates non-GM and GM-free certificates for 24 products.
The U.S. views this as an unnecessary restriction, while India argues it is crucial for ensuring traceability and consumer confidence. Additional non-tariff barriers include licensing requirements and import bans on specific goods, such as animal-based oils and certain medicines, which India justifies as protecting health, safety, and the environment. In 2024, India ceased issuing licenses for refurbished U.S. medical devices, which the U.S. views as excessive regulation. However, India contends that this is vital to avoid an influx of low-quality second-hand products that may jeopardize consumer safety and the domestic industry.
The USTR's annual report underscores trade policies impacting U.S. exports and investments globally, with India being a primary concern due to its restrictive trading practices. While the United States advocates for reducing trade barriers, India maintains that its policies are essential to safeguard domestic interests and ensure consumer safety.
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