US assures India it won't cut imports despite $30 billion trade deficit

Posted by Daily Shipping Times on 01-11-2017        Tweet

WASHINGTON: The United States has assured India that it will not curtail imports to reduce or eliminate the trade deficit of 29.6 billion US Dollars. Trade deficits with various countries especially with China, has been a red flag for President Donald Trump who had promised American companies a fair deal globally by expanding exports.

The assurance came from the US Secretary of Commerce Wilbur Ross in his recent meeting with Union Commerce Minister Suresh Prabhu at the third US-India Commercial Dialogue in Washington, the first the annual meet of Commerce Ministers in President Trump’s regime

United States admitted that the trade deficit was indeed an issue, the Country would deal with it “not by reducing imports from India but by promoting more exports from the US to India” Commerce Minister Suresh Prabhu said after meeting his counterpart in the US capital.

It was a positive idea that India welcomes and it meant that we can buy more goods from United States, the Minister said.

The Minister also said there was progress on the long-stalled issues bedeviling export of Indian mangoes, pomegranate, apples and grapes into the US that were subjected to long inspection delays involving irradiation which added to cost overruns making them prohibitively expensive in grocery stores.

Bilateral trade between Indian and the US stands at 115 billion US dollars, which is thrice the figure in 2005. America’s trade deficit of 29.6 billion US Dollars had prompted Trump to order an investigation into all unfavorable trade to ascertain if they were caused by unfair trade practices.