In an interview with CNBC-TV18, Sibal warned that a comprehensive-based business deal advocated by US Commerce Secretary Howard Lutnik would not serve American interests as expected.
“If we do not interact on a product-based bilateral deal and instead opt for an entire board trade agreement, it will be China that benefits America the most,” Sibal warned. “And of course the United States doesn’t want so.”
Sibal’s comments to reduce tariffs between India and the US and improve bilateral trade come amidst intensive discussions. President Donald Trump recently claimed that India had agreed to “cut off” the tariff, strengthening its long -standing claims that India faced excessive sanctions in America’s exports. However, Sibal dismissed Trump’s rhetoric, making his statements called exaggerated and misleading.
âTrump is bullying the rest of the world including India on this tariff question. He is completely changing the basis of international trade, dismissing the WTO subjects, âsaid Sibal. He said that despite Trump’s $ 100 billion trade deficit claims with India, the actual figure is close to $ 46 billion. In addition, he denied Trump’s claim that the US “cannot export anything” to India, highlights the American exports that India is about $ 46 billion annually.
Beyond Prime Minister Narendra Modi’s visit to the US, India had already given significant tariff concessions on high-value US imports, including luxury cars and motorcycles. However, Sibal insisted that any further tariff cuts from the US should be linked to mutual commitment to increase imports from India. âIf the target of $ 500 billion is to be met in bilateral trade, it cannot be on the basis that the US benefits from this and India. This is a two-way process, âhe said.
Commerce Minister Piyush Goyal is currently leading India’s trade talks at Washington, DC, engaged with US Commerce Secretary Howard Lootnik and American Trade Representative Jamisson Greer. While the discussion remains in the initial stages, they are expected to give a significant shape to the future of Indo-American trade relations.
Below are parts of the interview.
Question: How do you see what kind of frontal attack Donald Trump sees against India, saying that it is impossible to sell anything here, and India, by the way,, “have agreed to bring the tariff down much”. How do you read these statements? And also, to keep in context, what to say to Howard Lutynik really said, he said that we are not looking at a product by product deal with India. We want something comprehensively based. We want something at the macro level. We do not care what you provide to the rest of the world, you need to have a special relationship with America?
SIBAL: Trump is bullying the rest of the world including India on this tariff question. After all, America is a very large market, and it imports, some trillion dollars have imports from different countries.
Now, if it exports to the United States, the market is interrupted, meaning that countries that are exporting to the United States will be in a great reform. They have to find an alternative market, and it will not be easy. Therefore, Trump knows what he is doing. He is openly bullying, but he knows what he is doing. He is completely changing the base on which international trade is still taking. He is also completely rejecting the subjects of WTO. He wants a bilateral agreement with countries on business where he feels that he has an upper hand.
Of course, in India, he is very vague on facts and figures, which is a regret, because, as you can remember, he said in one of his speeches that the trade deficit with India is $ 100 billion dollars, while it is actually about $ 46 billion. Therefore, when he says that the United States cannot export anything to India, it is again a part of the hand statement, which means nothing, because, after all, their exports to India are around $ 46 billion. Therefore, you cannot say that the United States cannot export anything to India.
In relation to Lutnik, they are making a big mistake, and we have to persuade them why they are making this mistake. We can make a bilateral agreement with them, and it is allowed under the World Trade Organization. And this will then exclude MFN treatment, because if we do not have a product -based bilateral interaction for the United States, and move across the board, it is not basically the United States that is going to benefit the most from it, it will be China. And of course the United States does not want so. Therefore, the full approach is incorrect, and it is really to get its way, one way or the other.
The second thing is that his tendency to make a ongoing comment is being held behind the scenes. It is now a fact that India and Commerce Minister have gone there with very positive minds, rather than being negative about tariff cuts as we have been in the past, today the entire attitude is different. A lot of studies have been conducted by India before this meeting, where we can actually go for tariff reduction, which will satisfy Americans and therefore what we can in return from Americans.
Question: We have seen since the time of the Union Budget that India was giving concession. We reduced cars above $ 40,000 to about 100% to 70% on fully manufactured cars. Even Harley Davidson or high -capacity motorcycles over 1600 cc, and even less than 1600 cc, we have reduced tariffs in the budget and also for some electronic items. Therefore, we are making those gestures for America. America knows this, but they definitely want more. I want to draw your attention that some high -laid sources told us what is happening in the conversation, it is very difficult to tell what is happening in the conversation. We are advancing our sensitivity, but the current dialogues should be seen in the light of how India reduced the average applied tariff for countries like Norway, UAE and Australia. Does it give you a signal that yes, India will reduce the average applied tariff in the entire board with the US, and perhaps it will bring it to the same level?
Sibal: We have done these ftas with Australia and with EFTA and with the United Arab Emirates. Therefore, what this high-level source is saying is that we have moved on the road with the road we have signed an FTA and so if we signed a multi-regional trade agreement with the United States, we will go down the road with the United States as well. We have already demonstrated our desire to do so.
And in relation to the concessions made in the budget, it was a kind of soft seat, that before the Prime Minister visited the United States, it was a message for Trump that we were ready to give concessions to the United States on tariffs, and it was not mutual. We did not ask for anything in return. This is only goodwill and our intentions hope that it will be registered and passed, because in a joint statement, you will find a reference of stages that we raised in the budget to raise more business opportunities for American goods.
But Lutnik is quite wrong when he wants India to give these concessions throughout the board, unless there is a lot of conversation between the two sides very seriously and deeply, where there is some mutuality, where we have shown our desire that we can open our economy to import more than the United States, as we will expect that we can export more to the United States. If the target of $ 500 billion is to be met, it may not be on the basis that the US benefits from this and India. This is a two-way process.
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