India to cut tariffs to zero on many US industrial, farm products: USTR

Washington: India will lower tariffs on a “vast array” of American industrial and agricultural goods, such as “fruits” and “vegetables”, to zero per cent under the trade deal announced by President Donald Trump, a top US official has said.

US Trade Representative Jamieson Greer described the deal as a “big win” while noting that India will continue to control “certain key areas” that enjoy protection.

“This is it. The time has come, and now we have the deal. We’ll finish papering it, but we know the specifics. We know the details. It’s a very exciting opportunity,” Greer told CNBC Squawk Box on Tuesday.

Greer said the US will continue to maintain some level of tariff against India - 18 per cent - “because we have this giant trade deficit with them, but they’ve also agreed to reduce their tariffs for us on a variety of agricultural products, manufactured goods, chemicals, medical devices, etc. It’s an exciting opportunity for both countries.”

Giving details of the deal, Greer said the average tariff on industrial goods in India is currently around 13.5 per cent. “That’s going to go to zero for virtually everything. When I say virtually, I mean 98-99%. On the agricultural side, there’s a vast, vast array of agricultural goods. So it will go to zero,” he said. “India, like every country in the world, including the US, has some protection around certain key areas where they’ll continue to control that. We’ll continue to work on access. But for a variety of things, tree nuts, wine, spirits, fruits, vegetables, etc, they’re going down to zero. This is a big win.”

On the non-tariff barriers, he said that getting rid of tariffs is one thing, but often, the non-tariff barriers pose problems.

Separately, White House Press Secretary Karoline Leavitt on Tuesday said India has committed to “no longer” purchasing Russian oil, with PM Modi also agreeing on investments of USD 500 billion across key American sectors.

Leavitt said India is “committed to not only no longer purchasing Russian oil, but buying oil from the US, also perhaps from Venezuela too, which we know will now have a direct benefit on the US and the American people.”