Non-trade issues key as deadline nears

AS INDIA AND the US enter the last few weeks of the autumn deadline for the first tranche of the Bilateral Trade Agreement (BTA), both sides have signalled that a deal is around the corner that might see tariffs on India come down to 10-15%.

- FE BUREAU

The drop in additional tariffs from 50% to 10-15% was indicated by Chief Economic Adviser V Anantha Nageswaran in September, who had said his intuition says penal tariffs would not exist beyond November 30.

Demands from the US relate more with non-tariff and trade issues, while India is seeking that its 50% duties— 25% reciprocal and 25% penal for buying Russian oil—be brought down to levels that other close US allies and partners have got.

The US wants India to shut down or considerably reduce oil purchases from Russia.