India to continue US trade talks despite 10% tariff

Commerce ministry says govt working on early conclusion of bilateral trade pact

MUMBAI:

India said on Saturday it would continue engaging with the United States to conclude a bilateral trade agreement, after Washington imposed a 10% tariff on imports from the South Asian nation under new trade measures.

The Trump administration on Friday unveiled fresh duties of between 10% and 12.5% on goods from 60 trading partners, including India, alleging those countries had failed to curb imports made with forced labour.

The fresh duty on India is lower than the 12.5% tariff proposed in June and excludes products such as generic pharmaceuticals, smartphones, steel, aluminium and auto parts, India's commerce ministry said in a statement. India remains engaged with the United States and would continue discussions on sector-specific issues, including textiles, as part of negotiations on a bilateral trade pact, the statement said.

The two countries have been negotiating a trade agreement since last year as they seek to deepen economic ties and resolve longstanding market access issues.

"The government remains committed to working with the United States towards the early conclusion of the India-US Bilateral Trade Agreement," the ministry said. It added that about 45% of India's exports to the United States would remain outside the scope of the fresh tariff because of product exemptions, while the remaining 55% would face the new 10% duty.