- Indian farmers and U.S. manufacturers of medical devices could be among the main winners in a trade package under negotiation, as Washington and New Delhi look to remove long-standing irritants to ties.
- The current discussions, however, are focussed on removing outstanding sources of friction, and are not aimed at creating a bilateral free trade agreement.
- Having already waded into bigger fights with China and the European Union, Mr. Trump has previously called out India for unfair trade practices.
- At an estimated $126 billion, U.S. goods and services trade with India last year was less than a fifth of its trade with China.
- Unlike some other countries India failed to be given a waiver after the Trump administration imposed new import tariffs on steel and aluminium imports in March.
- New Delhi retaliated by raising tariffs on a number of U.S. products but has held back from implementing them while it negotiates a package to soothe ties.
- The tariffs were to go into effect from Monday midnight but the government issued an order saying these had been deferred until Nov. 2.
- S. companies are hungrily watching an Indian economy that is growing at more than 8%, as they seek presence in a market that has potential for massive growth.
- One of the most prominent trade issues to erupt during Mr. Trump’s presidency has involved India’s treatment of medical devices imported from the United States.
- Last year, U.S. exports of medical devices and equipment to India totalled $863 million.
- India last year equated high profit margins of medical device makers with “illegal profiteering”, capping prices for some heart stents — small wire-mesh structures used to treat blocked arteries — and knee implants, to help poor patients.
- One of the main areas where India is likely to benefit will be agricultural trade, with Washington expected to grant concessions making it easier for exporters of products like rice, mangoes, table grapes and lychees.
- Currently, the United States imports just a small fraction of the $5.5 billion of rice shipped annually from India, the world’s top rice exporter.
- New Delhi wants to sell basmati rice but U.S. agencies have in the past flagged concerns over the presence of chemical residues in the rice.
- New Delhi is also discussing how to meet stringent U.S. standards to sell bovine meat.
- India is the world’s biggest buffalo meat exporter but has failed to make much headway in the U.S. market because of Washington’s insistence that a country be free from foot-and-mouth disease.
- The two sides are exploring ways to open the U.S. market for certain grades of bovine meat from India, according to the Indian government negotiator and the other sources familiar with the talks.
- For its part, the United States wants to sell more almonds to India, the world’s top buyer, cherries and eventually dairy products.
- The United States has also been urging India to lower the input costs of components for IT that would allow U.S. companies to manufacture in India as part of Mr. Modi’s Make-in-India campaign.
- These affect firms such as Apple Inc and Qualcomm Inc who have plans to set up operations in the country.
- The United States has complained that India’s tariffs are among the highest in the world, and cover a range of IT equipment, including circuit boards, screens and memory chips.
