RECIPROCAL TRADE
20, Jun 2019
Prelims level : Economics
Mains level : GS III- Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
Why in News:
- The State Department of US reacted to India’s announcement of retaliatory tariffs on certain U.S. imports reiterating President Trump’s message of reciprocal trade and the strength of U.S.-India ties.
What is Reciprocal Trade:
- Reciprocal trade is an agreement between two countries which provide for the exchange of goods between them at lower tariffs and better terms than that exist between one of the countries and other countries.
Details:
- The U.S.-India partnership stands upon a shared commitment to democratic values and the rule of law. The United States is India’s top market for exports and U.S. companies see great opportunity in India.”
U.S. continued to raise market access concerns with India.
- Among the challenges in the Indo-U.S. relationship, are the U.S.’s preferential trade access system, the Generalized System of Preferences (India was recently taken off the beneficiary list), 5G network infrastructure, and data localisation.
- The U.S. is also concerned about India’s policies with respect to data portability across borders that has become one of the areas of disagreement in trade discussions.