Lok Sabha Question No. 867 (UNSTARRED), answered on 2018-07-23
Subject: Indo-US Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: VINAYAK BHAURAO RAUT, DHARMENDRA YADAV, PONNUSAMY VENUGOPAL, ANURAG SINGH THAKUR, ASADUDDIN OWAISI, PRITAM GOPINATH MUNDE, SHIVKUMAR CHANABASAPPA UDASI, ANANDRAO  ADSUL, Tejpratap Singh,Yadav, SHIVAJI ADHALRAO PATIL, ANJU BALA, KUNWAR PUSHPENDRA SINGH CHANDEL, Shrirang Appa Barne

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 867 TO BE ANSWERED ON 23 rd  JULY,2018

## INDO-US TRADE

## 867.   SHRI VINAYAK BHAURAO RAUT:

SHRI DHARMENDRA YADAV:

DR. P. VENUGOPAL:

SHRI ANURAG SINGH THAKUR:

SHRI ASADUDDIN OWAISI:

DR. PRITAM GOPINATH MUNDE:

SHRI SHIVKUMAR UDASI:

SHRI ANANDRAO ADSUL:

SHRI TEJ PRATAP SINGH YADAV:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRIMATI ANJU BALA:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI SHRIRANG APPA BARNE:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether  the  tariffs  on  steel,  aluminium  and  other  items  imposed  by  the  United States (US) are likely to impact Indo-US bilateral trade and if so, the reaction of the Government  thereto  along  with  the  total  indian  exports  to  the  US  from  2014  to 2018;
- (b) whether India has also hiked tariff on goods being imported from the US and if so, the details thereof along with its impact on indian economy and the bilateral trade between the two countries;
- (c) whether the US  revoking preferential benefits to Indian exports would be detrimental to trade and if so, the reaction of the Government thereto;
- (d) whether  the  US/  US-Indian  Strategic  Partnership  Forum  has  challenged  India's export promotion programmes, started review of India's GSP eligibility and begun examining fixation of prices of American pharmaceuticals and medical devices and if so, the details thereof; and
- (e) whether the two countries have approached the World Trade Organisation in this regard and if so, the details thereof along with the steps taken by the Government to resolve the issue amicably?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

After issue of United States (U.S.) Presidential proclamations imposing tariff on steel and aluminum, Government of India has taken up with U.S. Authorities for exempting Indian imports into U.S. from tariffs levied under Section 232 of U.S. Trade Expansion Act and pursued persistently with the U.S. Administration. As no positive response had emerged from the U.S. side, India filed for consultations with U.S. before World Trade Organization  (WTO)  Dispute  Settlement  Body.  India  also  imposed  retaliatory  tariffs which  would  come  into  effect  from  4 th August,  2018.  Nevertheless,  India  remains engaged with the U.S. for an amicable solution for the issue.

Total Indian exports to the U.S. from 2014 to 2018 are as below -

|                                                        | India's Exports to USA (in US $ Million)   | India's Exports to USA (in US $ Million)   | India's Exports to USA (in US $ Million)   | India's Exports to USA (in US $ Million)   |
|--------------------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------|
| Particulars                                            | 2014-15                                    | 2015-16                                    | 2016-17                                    | 2017-18                                    |
| Items where 25% tariff levied by the U.S. on Steel     | 1102.55                                    | 519.8                                      | 537.51                                     | 618.39                                     |
| Total Steel Items                                      | 2412.83                                    | 1638.24                                    | 1593.65                                    | 1977.73                                    |
| Items where 10% tariff levied by the U.S. on Aluminium | 272.13                                     | 260.09                                     | 311.65                                     | 637.81                                     |
| Total Aluminium Items                                  | 306.85                                     | 295.17                                     | 350.14                                     | 680.24                                     |
| Total Indian Exports to USA                            | 42,448.66                                  | 40,335.82                                  | 42,212.27                                  | 47,878.69                                  |

- (b): Yes, Madam.

In response to U.S. imposition of tariffs on steel and aluminum, India hiked the tariff on 29 U.S. imports which would come into effect from 4 th August, 2018.At this point of time, no major impact on Indian Economy is envisaged.

- (c): India specific review of Generalized System of Preferences (GSP) has been taken up by the U.S. Presently, the review is at the stage of examination of post hearing comments and  the  outcome  of  the  review  may  take  a  few  more  months.  In  case  U.S.  revokes preferential benefits to Indian exports, the Indian exports presently availing GSP would be impacted. India has persistently engaged with the U.S. for continuation of the GSP and also submitted pre-hearing as well as post-hearing comments.
- (d): Yes, Madam.

United States requested for consultations on India's export incentive schemes at World Trade  Organization  in  March,  2018.  Also  as  mentioned  above,  the  GSP  eligibility review has been taken up by the U.S. U.S. is also seeking a more nuanced approach for price cap on medical devices.

- (e): Both  the  U.S.  consultations  on  India's  export  incentive  schemes  as  well  as  India's consultations on imposition of tariff under Section 232 of U.S. Act are currently before the WTO.

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