New Delhi: India has decided to pause the proposed trade deal with the United States for several months after the Donald Trump-led US administration launched
a probe against trading partners including India, China to look into ‘unfair foreign practices’, Reuters reported.
An interim trade agreement between India and the United States was expected to be formally signed in March, after which the full trade deal was to be finalised.
The Trump administration has decided to target 16 major trading partners. On 12 March, the US announced the probe against 16 major trading partner countries with an aim to ‘protect’ American industries and curb the global glut of cheap goods. India is also under the scope of this investigation.
US starts Section 301 probe against India, 15 other economies
The US Trade Representative (USTR) said it has started investigating a fresh round of Section 301 trade probe targeting policies and industrial practices of 16 economies, including India and China.
The probe will examine whether certain countries have structural excess capacity in their manufacturing sectors that could harm American industries. Reuters reported that the Indian administration is viewing India this investigation a pressure tactic, and in such a situation, India is currently in no hurry to finalise any agreement.
India had expected to seal an interim deal in March after Trump agreed to reduce US tariffs on Indian imports, while New Delhi stops Russian oil imports, slashes taxes duties on US goods and pledging to buy $500 billion worth of American products.
Meanwhile, a White House official said the US was working with India to finalise a trade deal.
The USTR has announced that investigations are against its trading partners, including India, China, Japan, and the European Union (EU). The probe covers sectors, including batteries, electronics, chemicals, machinery, semiconductors, solar modules, steel, aluminum, and automobiles.
