India To Reject Aluminium Quotas In Exchange For Tariff Exemption
13 September 2018 by Staff
Sources from within the Indian government indicate that it will not entertain the notion of exchanging blanket tariffs on aluminium and steel for a 70-percent quota on imports of the same.
According to reporting in local media, the Indian government continues to hold the position that its exports to the United States is a minuscule portion of the country’s total intake of aluminium and steel and, as such, it merits none of the import restrictions placed upon it.
“We have made it clear that we will not accept any caps on India’s steel and aluminium exports to the US,” explained a government official to domestic media speaking on condition of anonymity.
Though the country’s contribution to U.S. imports is small, India says the impact of tariffs upon its aluminium industry has been substantial. Per the government, steel and aluminium producers have suffered harm to US$1.2 billion in exported stocks to the United States, while the United States has gained revenue of $241 million in the course of the tariffs’ run.
At present the governments of India and the United States are at the bargaining table to discuss a trade package, with a waiver on aluminium tariffs similar to that given to the Republic of Korea, Argentina, and Brazil the aim for Indian negotiators.
Three rounds of trade negotiations are already complete, with a fourth round expected to commence upon the arrival of US trade representative for South and Central Asian affairs Mark Linscott later this month.
However, President Donald Trump has often pointed to India’s trade surplus as a negative for the United States economy. Last week Trump indicated his administration’s desire to end subsidies to emerging markets like that of India’s, as he considers the United States a “developing nation” whose economy should be allowed to grow faster than those of India and the People’s Republic of China, among others.