March 2018
11:02 PM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | About Deepika 
Business News
India braces for Donald Trump's reciprocal tax, may fight it in WTO
India is gearing up for a tough fight following America’s repeated threat of imposing a “reciprocal tax” on countries with which it has a trade deficit. “We will oppose such a move on the basis of the principles involved,” a senior Commerce Department official told Business Standard. The issue could possibly be taken up at the World Trade Organization’s disputes settlement body as well, experts said.

On Friday, US President Donald Trump signed two proclamations that levied a 25 per cent tariff on steel and 10 per cent on aluminium imported from all countries except Canada, Mexico and Australia. While the exact details of the new order are not known, the contentious tariffs will come into effect in 15 days. While the US focused on China for the larger part of Trump’s first year in office, India has been a target in the recent past. Trump voiced his disappointment against “unfair” treatment of American exports to the country even as India enjoys free access to the US market. “We’re going to be doing a reciprocal tax programme at some point, if China is going to charge us 25 per cent or if India is going to charge us 75 per cent. If they are at 50, or they are at 75 or they are at 25, we are going to be at the same number,” Trump said on Friday.

“Reciprocal tax” is a new concept in the global trade rules. “The US President may not have a clear idea about how reciprocity works at the WTO. Each country has some flexibility to change its customs duty as long as it does not break its larger commitments under the fixed bound rates,” Abhijit Das, head of the Centre for WTO Studies, said.

Under the norms of the WTO, which oversees global trade law for its 164 member nations, the bound tariff rate is the customs duty rate committed by a country to all other members under the most favoured nation principle, which prohibits discrimination in tariffs. Pointing out that it is not known as of now whether the US move is within the bound rate, Das clarified that India has never raised its tariffs beyond the fixed bound rates, which are arrived at after lengthy trade negotiations and vary for every nation.

India’s decision to raise import duties as announced in the last Budget was within the rates, according to Das. When a country raises a tariff to a higher level, those adversely affected can seek remedy through the dispute settlement body (DSB) of the WTO.

“The US has single-handedly and consistently blocked the appointment of judges to the seven-member DSB. Currently, three members have retired and a fourth is set to retire soon,” senior trade expert and Jawaharlal Nehru University professor Biswajit Dhar said. India had repeatedly raised this issue during the last ministerial conference of the WTO at Buenos Aires in Argentina, with Commerce and Industry Minister Suresh Prabhu urging swift action to resolve the impasse. “This is part of a larger plan to destabilise the WTO structure and force India and other nations to come into a bilateral agreement with the United States,” Dhar added.

Global trade facing challenges,India needs to boost exports: Prabhu
Havells appoints Shashi Arora as CEO of Lloyd
Markets consolidate gains, Sensex reclaims 33k-mark
SAIC’s MG Motor India to invest Rs5,000 crore in next six years
Audi to hike car prices by up to Rs 9 lakh from April
RBI sets rupee reference rate at 64.9366 against US dollar
Indians choose travel over shopping, food: Survey
'Panama Papers' law firm shuts down operations
Delhi, Bangalore, Chennai among cheapest cities globally: EIU
Sensex extends losses, down 66 pts; Nifty below 10,400
SBI closes 41.2L SB accounts for not keeping minimum balance
RBI scraps bank LoUs in the aftermath of PNB fraud
Huawei, Savex Technologies partner for enterprise biz in India
Rupee opens 9 paise higher against US dollar
Sensex cautious on weak global cues; TCS cracks 5%
Rupee rises 23 paise against dollar in opening trade
Sensex rallies 301 pts ahead of IIP, inflation data
Sensex ends marginally lower on late sell-off
Rupee rebounds 4 paise in opening trade
Tata Steel could pip JSW to emerge as highest bidder for Bhushan Steel
Kannur accident: Manorama News journalist injured
 (Koothuparamba, Mar 24, 2018, DG): Four persons have been injured in a car-lorry crash at Kot  
Observe Earth Hour between 8.30 PM-9.30 PM Saturday, appeals Governor
IYD: Govt to take foreign Yoga professionals to Kerala
IS recruitment case: Woman operative sentenced to 7 years in jail
Three killed in France shooting; Islamic State claims responsibility
 (TREBES, Mar 23, 2018):Islamic State on March 23 claimed a shooting in the southwestern Frenc
Trump replaces McMaster, taps Bolton as national security adviser
EU blames Moscow for UK spy attack, recalls envoy
Asian markets tumble with Wall St as Trump sparks trade war fears
Shah sets target of 21 seats from northeast
 (Guwahati, Mar 24, 2018): Gearing up for the next general election, BJP President Amit Shah t
SC asks 12 states why they have not appointed Lokayukta
Bihar: Explosion in illegal firecracker unit kills 5
Air India crew member slaps junior for serving non-veg food to passenger
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.