Why India may not agree to’ zero for zero tariffs’ with US under trade deal

New Delhi: With India and the United states set to begin virtual talks over the proposed bilateral trade agreement this week New Delhi is unlikely to agree to a zero for zero tariffs strategy with Washington. The 2 sides may also not go for item by item parity during these sector-specific talks with negotiations revolving around bringing the overall tariff down from both sides amid US president Donald Trump America first policy push.

New Delhi and Washington are scheduled to engage in sector-specific talks in the coming weeks and the first phase of the trade deal between the US and India could not out within the tariff-pause period of 90 days.

The terms of reference for the pact have been finalised and further negotiations are set to take place primarily over video conferencing though negotiators may meet in person as well according to a report by NDTV Profit.

Discussions around a broad package deal on tariffs and non-tariff barriers are likely to take precedence over achieving tariffs parity. India and US may not go for item by item parity during these sector specific talks and the talks may revolve around shaping the deal on bringing the overall tariff down from both sides people in the know told NDTV profit.

The deal is also unlikely to have zero for zero tariff strategy as the two countries are at different levels of economic development according to a report by Press Trust of India certain trade experts have suggested that India can propose a zero for zero tariff strategy to the US for addressing President Trump reciprocal tariffs hikes