India delays Washington trade visit as U.S. policy shifts: source
US President Donald Trump (R) and Indian Prime Minister Narendra Modi arrive at Hyderabad House in New Delhi for a joint press conference on February 25, 2020. (Photo: Prakash SINGH / AFP) (Photo: PRAKASH SINGH/AFP via Getty Images)
Prakash Singh | Afp | Getty Images
India’s trade negotiators will reschedule a planned visit to Washington, D.C., in a bid to solidify an interim trade deal with the United States, a person familiar with the development told CNBC.
The development comes after the US Supreme Court declared US President Donald Trump’s tariffs illegal on Friday. Within hours, Trump used Section 122 of the Trade Act of 1974 to first impose a 10% global import tariff, then raise it to 15%.
The source told CNBC on Sunday that “the meeting will be rescheduled at a mutually convenient date.” India and the US are of the opinion that the visit “should be planned after both sides have time to evaluate the latest developments and their consequences”.
India’s chief negotiator Darpan Jain and his team are scheduled to begin a three-day meeting in the United States later this week.
India currently faces a reciprocal tariff of 25 percent; This is expected to be reduced to 18 percent after the two sides reached an interim agreement with room for changes earlier this month.
“In the event of any change in the agreed upon tariffs by either country, the United States and India acknowledge that the other country may modify its commitments,” the joint statement issued by the US and India on February 6 said. The statement was included.
Ajay Srivastava, founder of the Global Trade Research Initiative and former India trade negotiator, said that at this stage, India, like other countries, will face a 15 percent tariff on top of most-favored nation status rates (usually around 2-3 percent).
Rethinking strategy
According to a report, both parties had been meeting virtually since the announcement on February 6 to discuss the path forward. local media report. Face-to-face talks with US Trade Representative Ambassador Jamieson Greer, scheduled for next week, were seen as a precursor to the finalization of the legal text of the agreement between India and the US.
The interim trade agreement between the two countries is likely to be signed in March and implemented in April, Indian Commerce Minister Piyush Goyal said on Friday.
“The 18% tariff negotiations were based on a certain assumption of some benefits that have now disappeared. Both sides now need to rethink their strategies and the US needs to deal with more pressing issues,” Srivastava said. he said.
