‘India never misuses import duty’, think tank denies Donald Trump’s claim
New Delhi| Think tank Global Trade Research Initiative (GTRI) said that former US President Donald Trump’s recent claim on India regarding misuse of import duty is false. She said many countries, including the US, protect their domestic industries by imposing high customs duties on certain products. On September 17, Trump had labeled India as misusing import duties.
Ajay Srivastava, founder of GTRI, said that according to WTO’s World Tariff Profile 2023, the U.S. is responsible for dairy products (188 percent), fruits and vegetables (132 percent), coffee, tea, cocoa and spices (53 percent), grains and food preparations (193 percent), oilseeds, fats and oils (164 percent), beverages and tobacco (150 percent), Also imposes higher duties on commodities such as fish and fish products (35 per cent), minerals and metals (187 per cent), and chemicals (56 per cent). GTRI said these figures prove that the US protects specific products of its economy by imposing higher tariffs. Whereas India imposes high duties only on some goods including wine and automobiles.
GTRI argued that when Trump refers to India’s high tariffs, he notes the very high tariffs on certain products, such as liquor or cars. But this does not reveal the complete picture of India’s trade policy. If you focus on average fees (which means looking at all products at once) and trade-weighted fees (which looks at which products are traded in what quantities), India’s tariffs are as high as they are. Not as much as they seem to be just by paying attention to certain items.
Trump’s recent claim is reminiscent of his October 2020 statement. In this he had called India the duty king. Srivastava said that while the truth is that India imposes high duties on selected products. Trump’s argument ignores the necessary context. This proves their allegations wrong. He said India’s average duty rate of 17 per cent is higher than the US’s 3.3 per cent, but similar to other major economies like South Korea (13.4 per cent) and China (7.5 per cent).
The GTRI report also said that India has shown openness to free trade by removing customs duties for imports from FTA (Free Trade Agreement) partners like ASEAN (Association of Southeast Asian Nations), Japan and South Korea. However, despite India’s wishes, the US has been reluctant to reduce tariffs through FTAs.