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| India US trade relations, issues,war,deficit,dispute |
India and the US, both countries are the largest & the oldest democratic country in the world respectively. After the end of USSR & during George W. Bush presidential tenure, both countries came close to each other, both want to contain China.
In 2019, the US under the
Presidentialship of Mr. Donald Trump revoked GSP (Generalized System of
Preference) status of India, after that India also increase the tariff of 28 US
goods. Now trade war between the US & India stared.
Trade Differences between US and India.:
- India High tariff/import duty?
- US's View: India has protected own market with a high import tariff on US goods. Example: 50-60% tariff on the motorcycle, 150 % US Liquor
- India’s View: The average tariff of all US goods which imported to India is approx. 13.8 %, not much higher than levied by South Korea & Brazil.
- US dairy product Ban?
- US's View: India should open the market of US dairy product.
- India's View: India is ready to open the dairy market to India but the US should take care of the cultural sentiment of India. In India, cows are sacred animal and we feed only vegetable meal to them. But in the US, cow’ food includes bull organ & blood meal, milk of those cows are not as per Indian culture.
- Stent price cap?
- US‘s View: India caps stent price and this is against the free market.
- India’ view: Due to poverty in India, and essential item nature of stent, India does capping of stent price for the welfare of our people.
- Data localization?
- US’s view: due to data localization rule of India, Americans are losing money and Job. India’s View: For the security of India & its people data, data localization is compulsory for all companies those who are dealing with Indian people data.
- IPR Violation?
- US’ Views: India, Indian company & Indian people do not follow IPR & US companies are losing a big chunk of money due to IPR violation in India.
- India’ Views: US is seeing IPR from own domestic law. India is not bound to follow US domestic law. India will follow own domestic law as per the welfare of own people. If the US does has any problems that the US has the right to go WTO. India is following the spirit of GATT( General Agreement on Tariff & Trade).
- Farmer Subsidies?
- US ‘s view: Giving subside electricity, fertilizer and other subsidies to good for the farmer.
- India Views: Due to farmer subsidies in the US, Indian agricultural products price is higher in the US and India is not able to export to the US.
There is much trade
difference between India & US, we will discuss each from both countries
point of views.
As per WTO ( world trade organization), the US also levied a very high tariff on tobacco(350%), peanut(164%), and some dairy product(118%), these are the proof US do more tariff on own interest.
India currently enjoys approx. 24 $ Billion trade surplus over the US, but this is a very tiny amount if we compare to the US GDP. Under Mr. D Trump presidentship US not able to see a broad picture of India, US relation, they are evaluating & only focusing trade part of the relation. If the US has any problems on the tariff of India or China or from other counties, the US should go to multi-trade forum group such as WTO. The US should not take any action unilaterally. If the trade war among countries continues to long run than 1930 great financial depression may be repeated.
There is much trade
difference between India & US, we will discuss each from both countries
point of views.
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