India’s exports to the US was $52b, imports were $35b
Trade deficit dropped from $21b in 2017-18 to $17b in 2018-19, largely due to India’s purchase of US oil, natural gas and coal. A bigly and neglected benefit of Trump’s energy policies. bit.ly/2SZrHdS
Abbreviated: the American side wants the removal of price caps (Trade Margin Rationalization) for its agriculture, dairy products and to remove the 20% tariffs on Information and Communications Technologies (ICT) products.
ICT. The US has said that its exports of these goods to India were valued at about $500m and that despite India’s commitment not to charge any duties on these products, India has been applying duties ranging from 7.5% to 20%.
Alcoholic beverages have a 150% tariff
Poultry. India’s chicken consumption is largely imported chicken legs, but India banned them in 2007/precaution against avian flu. US domestic market prefers chicken breast, creating problem of surplus
Information and Communications Technologies: India fears that eliminating tariffs on ICT products invites Chinese companies to come in and flood their markets.
Generalized System of Preferences (GSP) program resumed
Easier access to US markets for the export of mangoes, grapes, pomegranates, etc
Facilitation of processes in agricultural product markets where it already had access
Easier certification of food product irradiation facilities
Visas in Services Trade
India considers the “movement of natural persons,” as a “services” trade.
For the US, these are immigration matters that cannot be negotiated in trade deliberations bit.ly/2T8oDfq
Obama largely denied India as a US Defense industry client on the odd grounds they it would alter the balance of power with Pakistan. India increased its purchases and dependence on Russian made equipment, technology and services.
Air defense systems
In 2020 US approved a Foreign Military Sale to India of an Integrated Air Defense Weapon System (IADWS) for an estimated cost of $1.9b
In 2019, India signed a $3b contract w/Boeing for the purchase of 22 AH 64E BlockII Apache attack and 15 CH-47F Chinook heavy-lift helicopters
India recently announced purchase of 24 multi-role helicopters, MH-60R Seahawks for $2.5 billion.
Boeing is offering its F-15EX fighter jets to India. This might lock up $18b contract to procure 114 fighter jets, Boeing’s Super Hornet is already in contention. India is also planning to procure 57 carrier-borne aircraft.
Trump approved $1b sale of 13 naval guns
India, as an energy consumer since 2017 has begun strongly diversifying its energy imports from Iran and Saudi Arabia, and increasing its portfolio of US energy imports.
India has avoided giving any precision to its proposed digital/date governance regime.
An agri deal could help restore some of India’s GSP benefits and U.S. could graduate India back into the GSP bit.ly/2VaHl91
Sino-US tariffs may become the new normal, a syndicate of other countries will take up that slack as the global manufacturing base.
India identified 203 products where exports to US could be increased by replacing Chinese exports as it already has market access for these items and is a competitor of China.
India can help resolve a deception that China is using called “knockdown” – taking apart a product into its components and reassembling them outside China to avoid tariffs and duties.
You’re up to date, may the force be with you 🇺🇸🇮🇳