India, US weigh WTO workaround for BTA

The United States and India are considering sidestepping the World Trade Organisation's principle of non-discrimination while negotiating lower tariffs on goods in their proposed bilateral trade agreement, according to three people with direct knowledge of the matter.

- Rajeev Jayaswal

NEW DELHI:

Officials from both countries are actively engaged in determining the scope of the proposed bilateral trade agreement (BTA) following meetings in the United States in early March. While the proposed agreement is not yet being called a free trade agreement (FTA), the two nations may negotiate reduced tariffs for mutual benefit without automatically extending the same advantages to other WTO members, as would normally be required under the most favoured nation (MFN) tariff principle, the people said, speaking on condition of anonymity.