Indian team returns from USA without final trade pact

India has formally proposed retaliatory tariffs on select US products under World Trade Organisation (WTO) rules, in response to the recent hike in US import duties on automobiles and auto parts originating from India.

- STATESMAN NEWS SERVICE

In a notification to the WTO, India said the US safeguard measures – a 25 per cent ad valorem tariff on passenger vehicles, light trucks, and certain automobile components – would affect $2.895 billion worth of Indian exports annually. The corresponding duty collection by the USA is estimated at $723.75 million.

India stated that the proposed suspension of concessions or other obligations will be in the form of an increase in tariffs on selected products from the USA, matching the value of the affected trade.

"India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States," it said.