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India-US Trade Deal: No Zero Tariffs, But Progress on Interim Pact

Former US Assistant Secretary of Commerce Raymond Vickery clarified that India has not agreed to eliminate all its tariff barriers to zero, countering some representations. He acknowledged the positive step of a joint statement and an interim agreement framework aimed at mending the trade relationship. Vickery noted that while US tariffs on Indian products have been reduced to 18%, this is still significantly higher than pre-dispute levels. He praised India for taking a rational approach amidst pressure and emphasized the long road ahead for the crucial bilateral partnership.

Key Points: India-US Trade Deal: No Zero Tariff Agreement, Says Ex-US Official

  • India rejects zero-tariff demand
  • Interim trade pact framework reached
  • Tariffs reduced from peak to 18%
  • Goal is to mend US-India trade ties
2 min read

"India has not agreed to reduce all tariff barriers to zero, which was represented," says former US Assistant Secy of Commerce

Former US official Raymond Vickery clarifies India hasn't agreed to zero tariffs, but praises progress on the interim trade agreement framework.

"India has not agreed to reduce all of its tariff barriers to zero, which was represented. - Raymond Vickery"

Washington DC, February 7

Former US Assistant Secretary of Commerce Raymond Vickery said that India was not ready to put all its tariff barriers to zero, and it's represented in the joint statement.

Vickery, while talking to ANI on the India-US Interim Trade Agreement, said that there are elements which can help cement certain discontinuities which could have been otherwise detrimental.

He said, "There are elements here which, going forward, can help to bridge some of the discontinuities, which have been very harmful to the US-India relationship over the past year...It's good that something has been put forward in a joint statement...India has not agreed to reduce all of its tariff barriers to zero, which was represented," he said.

"It's great that India and the US seem to be working around this problem, which was created in the first place by President Trump...Now the tariffs are down to 18%. Well, that's still seven, eight times what they were before this started...There is a long way to go. India is doing a great job of not succumbing to the tweets or the social media pronouncements and taking a rational and logical approach to this so that this extremely important relationship between the U.S. and India can resume," he added.

The US and India announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). Today's framework reaffirmed the countries' commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, which will include additional market access commitments and support more resilient supply chains.

The Interim Agreement between the United States and India will represent a historic milestone in our countries' partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes, as stated in the joint statement.

- ANI

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Reader Comments

R
Rohit P
Finally some sensible diplomacy. Succumbing to Trump's tweets would have been a disaster. We need to negotiate from a position of strength, not fear.
M
Michael C
As an observer, it's refreshing to see India taking a logical, long-term approach. Trade wars help no one. This interim agreement is a step in the right direction for global stability.
A
Ananya R
Tariffs down to 18% is still too high for many products. While I support protecting local businesses, the common citizen ends up paying more for electronics and other goods. Hope the final agreement brings more relief.
V
Vikram M
The US needs to understand that India is a large market and a strategic partner, not a subordinate. Zero tariffs would have crushed our MSME sector. Jai Hind!
S
Sarah B
Building resilient supply chains is the most important part of this. The pandemic showed the risks of over-dependence on any single country. This India-US partnership is crucial for diversification.

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