7 September 2023, Mumbai: In preparation for US President Joe Biden’s three-day visit to India, the Indian government has made a significant move by eliminating additional duties on several American products. These duties were initially imposed in 2019 as a response to the United States’ decision to raise tariffs on specific steel and aluminum products. India had placed these duties on 28 US items in 2019. The decision to revoke these duties was conveyed through a notification by the Finance Ministry, dated September 5. It detailed the removal of duties on items such as chickpeas, lentils (masur), apples, shelled walnuts, and fresh or dried almonds, among others.
Background on Tariffs and Resolution
This development comes as President Biden is scheduled to visit India and participate in the G20 summit on September 9-10, with bilateral talks with Prime Minister Narendra Modi planned for September 8. During Prime Minister Modi’s state visit to the United States in June, both nations reached an agreement to terminate six disputes under the World Trade Organization (WTO) and to eliminate retaliatory tariffs on select US products. As part of this agreement, India has now removed additional duties on various items, including chickpeas (10 percent), lentils (20 percent), fresh or dried almonds (Rs 7 per kg), shelled almonds (Rs 20 per kg), walnuts (20 percent), and fresh apples (20 percent).
Symbolic Gesture of Cooperation
The decision to remove these additional duties on American products ahead of President Biden’s visit can be seen as a symbolic gesture of cooperation between India and the United States. It underscores their commitment to resolving trade disputes and fostering stronger economic ties. This move aligns with the broader goal of enhancing bilateral relations between the two nations.
Impact on Bilateral Relations
The elimination of these additional duties is expected to have a positive impact on the bilateral relationship between India and the United States. It not only reflects a willingness to address trade disputes but also paves the way for increased trade and economic collaboration. The removal of tariffs on American products aligns with both countries’ objectives to boost trade and economic growth.