India, US likely to side-step WTO principle in trade pact

The reduced tariffs under the pact for mutual gains may not extend to other WTO members

- Rajeev Jayaswal

The US and India are considering sidestepping the World Trade Organization'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.

Officials from both countries are actively engaged in determining the scope of the proposed bilateral trade agreement (BTA) following meetings in the US in early March. While the proposed deal 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 on the condition of anonymity.