India and the US will focus on increasing market access, reducing tariffs and non-tariff barriers and enhancing supply chain integration as they embark on negotiations on a Bilateral Trade Agreement (BTA), Parliament was informed Tuesday.
Replying to a written question in Lok Sabha minister for state for commerce Jitin Prasada said till date no reciprocal tariffs have been applied on India by the US.
The U.S. has issued Memorandum on Reciprocal Trade and Tariffs as per which Secretary of Commerce and United States Trade Representative are to investigate harm to US from any non-reciprocal trade agreements. Based on the findings the US will impose reciprocal tariffs.
“The government continues to engage with the Government of the United States to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner,” Prasada said.
“Under the ambitious “Mission 500”, both countries aim to more than double US-India trade to $500 billion by 2030 to be achieved by deepening the trade relationship across multiple sectors,“ he added.
In reply to another question, the minister said India’s tariff policy aims to regulate trade, protect domestic industries, and generate revenue through taxes on imported and exported goods. “Recent reforms have focused on streamlining the tariff structure and facilitating trade,” he added.
“With the changing trade scenario, India is moving towards having Preferential/Free Trade Agreements (PTAs/FTAs) wherein customs tariffs and non-tariff barriers are reduced or eliminated on substantial trade between the PTA/FTA members,” he said.
At present, India is a member of 13 FTAs and 9 PTAs apart from the negotiations with the EU, the UK, and Oman.