The Hindu Business Line : US seeks reduction in import duty on select items

The US Assistant Secretary of Commerce, Mr David Bohigian (right), and the Advisor to Secretary-General, FICCI, Mr V. K. Topa, at a meeting in the Capital on Thursday.

Our Bureau

New Delhi, Jan. 17 In its bid to get a larger share in the burgeoning Indian market, the US on Thursday sought a cut in import duty on select items including alcohol.

The US Assistant Secretary for Commerce, Mr David Bohigian, met senior Indian government officials, including the Secretary in the Department of Industrial Policy and Promotion, Mr Ajay Shankar. "India imposes 10 per cent higher tariff than other countries," he said adding that he was expecting a breakthrough soon on the US demand for reduction in import duty.

US MARKET

With close to five million Americans dependent on the FDI flows for their jobs, and $175 billion flowing into the economy in 2006, the US market remains as free as ever with a clear focus on tracking the policy environment, lowering of healthcare and energy costs and reduction of the regulatory burden, Mr Bohigian told reporters after an interactive meeting with Indian business leaders, organised by the FICCI.

Stating that the tariffs on a number of items that are imported by India from the US are in the double-digit range, he said, "India should continue with its policy of economic liberalisation through the lowering of its tariff regime."

`INVEST IN AMERICA'

He said the US launched its `Invest in America' project 10 months ago in the wake of misgivings expressed by many countries about the openness of the US economy. The project, the primary US Government mechanism to manage foreign investment promotion, is aimed at communication with foreign governments and investors on the openness of the US economy, addressing the concerns over the business climate and providing on-the-ground help to foreign investors through its commercial service and embassy staff.

OTHER INTERESTS

Besides seeking reduction in tariff, the delegation from the US Commerce Department is believed to have made strong pitch for the American aircraft manufacturer Boeing. Other products of interest to the US are fruits, corn syrup, chocolates, life-saving drugs, pistachio and sundried raisins.

The negotiations with the Indian officials would also cover the US interest in renewable energy areas such as solar and wind power and strict enforcement of the intellectual property rights.

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