India to keep engaging with US on trade deal

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

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

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The fresh duty on India is lower than the 12.5 percent 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 long-standing market access issues.

“The government remains committed to working with the United States towards the early conclusion of the India-U.S. Bilateral Trade Agreement,” the ministry said.

It said about 45 percent 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 percent would face the new 10 percent duty.

The fresh levy applies on top of standard US most-favoured-nation tariffs.

Reuters reported on Friday that Indian textile and apparel exporters are likely to be at a disadvantage against several Asian rivals under the new tariff regime.