India-US trade tensions threaten the ties that bind (DW)
DW
Business
17/06/2019 | Arthur Sullivan
The US and India are long-standing allies, and trade is an important part of the relationship. However, a row over market access and tariffs has escalated, leading to fears of a protracted dispute.
The US is already mired in a deepening trade conflict with China, the world's most populous nation. Now it appears to be on course for one with the world's second most populous — India.
They have come to the boil in recent weeks. Earlier this month, the US suspended Indian trade privileges from its Generalized System of Preferences (GSP), a 43-year-old program which gives US market access to less developed economies. India had been the biggest beneficiary of the scheme.
India said that it would hit back with tariff hikes and those levies duly took effect at the weekend — 28 specified US imports to India, including agricultural products such as lentils, chickpeas, apples and walnuts, are now subject to significantly higher rates than previously...Huawei is another potential sore point. The Chinese tech giant has plans for expansion in India and hopes to play a role in building the country's 5G network, something Washington is unlikely to take too kindly.
For its part, India is less than impressed by US threats to impose sanctions if the country buys oil from Iran and if it proceeds with plans to purchase Russian anti-aircraft missiles.
More here
https://www.dw.com/en/india-us-trade-tensions-threaten-the-ties-that-bind/a-49235292
