India may be hit by U.S. trade review


  • US to review its trade ties with its trading partner, in the backdrop of country’s surmounting trade deficit.
  • A “country-by-country, product-by-product” report will be prepared in 90 days that would form the basis of further measures that the administration would take to reduce the country’s trade deficit.
  • The report to identify every form of trade abuse and every non-reciprocal practice.
  • The review will be to assess whether a deficit is being caused by cheating, specific trade agreements, lax enforcement or World Trade Organization rules.

U.S. issues of concern with India:-

  • Inadequate protection of intellectual property,
  • State subsidies and tariff and non-tariff barriers.
  • Ban on animal-tested cosmetics and restrictions on dairy products and alcohol
  • Opaqueness in its non-tariff regulations
  • Export subsidy programmes in several sectors .

Future focus:

  • Trade in energy
  • Trade in generic pharmacy and defense.
  • Movement of service professionals in and out of U.S.

Key Fact:

  • India is the ninth biggest trading partner of the U.S. and had a trade surplus of around $26 billion with the U.S in goods trade alone last year.
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