India Lifts Additional Duties on American Products Ahead of G20 Summit

Retaliatory tariffs on US goods, including chickpeas, lentils, and apples, removed by India

Introduction: In a significant move, India has announced the removal of additional duties on several American products, including chickpeas, lentils, and apples. These retaliatory tariffs were initially imposed in 2019 in response to the United States' decision to raise tariffs on specific steel and aluminum items. The timing of this development, just a day before US President Joe Biden's arrival in India for the G20 Summit, adds further significance to the decision. This article explores the implications of India's decision and its impact on bilateral trade relations. Body:

The Background of Retaliatory Tariffs

To understand the significance of India's decision, it is essential to delve into the background of retaliatory tariffs. In 2019, the United States raised tariffs on certain steel and aluminum products, prompting India to retaliate by imposing additional duties on 28 American goods. This move aimed to protect the interests of Indian industries affected by the US tariffs.

The Removal of Retaliatory Duties

The Indian Finance Ministry, in a notification dated September 5, announced the removal of retaliatory duties on several American products. The list includes chickpeas, lentils, apples, walnuts in shells, and fresh or dried almonds, as well as shelled almonds. This decision comes as part of the agreement reached during Prime Minister Narendra Modi's state visit to the US in June, where both countries agreed to settle six World Trade Organization (WTO) disputes and eliminate retaliatory tariffs.

Significance Ahead of the G20 Summit

The timing of India's decision to lift additional duties on American products is significant, as it coincides with the upcoming G20 Summit and President Biden's visit to India. The move sends a positive signal about the commitment of both nations to resolve trade disputes and strengthen bilateral ties. It sets the stage for productive discussions during the G20 Summit and the bilateral meeting between President Biden and Prime Minister Modi.

Impact on Bilateral Trade Relations

The removal of retaliatory tariffs on American goods is expected to have a positive impact on bilateral trade relations between India and the United States. The United States is India's largest trading partner, with bilateral goods trade reaching USD 128.8 billion in 2022-23, an increase from USD 119.5 billion in the previous year. By eliminating these additional duties, both countries aim to foster a more conducive environment for trade and investment, benefiting businesses and consumers on both sides.

No Financial Loss for India

It is important to note that the removal of retaliatory duties on American products does not result in any financial loss for India. The decision was made in the context of resolving trade disputes and promoting a mutually beneficial trade relationship. The focus is on creating a level playing field and ensuring fair trade practices. Conclusion: India's decision to lift additional duties on American products, including chickpeas, lentils, and apples, ahead of the G20 Summit marks a significant step towards resolving trade disputes and strengthening bilateral relations. The move highlights the commitment of both nations to promote a conducive environment for trade and investment. As India and the United States continue to engage in productive discussions during the G20 Summit, the removal of retaliatory tariffs sets the stage for a more harmonious and mutually beneficial trade relationship between the two countries.