US ambassador to India, Eric Garcetti, emphasized the importance of collaboration between India and the United States to reduce tariffs and enhance trade fairness. Speaking at an event organized by the US-India Business Council, Garcetti referred to India as the “highest tariff major economy,” underscoring the need for reforms to make trade less restrictive and more equitable.
“The US could say you [India] might be down 95% from what tariffs used to be, but it’s still the highest tariff major economy in the world,” he remarked. “Too often, there are barriers that are arbitrary or take too long to resolve, ranging from issues of labor to land, which are challenges both nations share.”
Garcetti referenced recent comments by US President-elect Donald Trump, who stressed the need for tariffs to be “done fairly.” The ambassador echoed these sentiments, urging open and frank discussions about trade policies. “I think it’s helpful for us to speak bluntly, but let us use that as a starting point to negotiate much more deeply than we do today,” he stated.
Progress in Trade Relations
Despite challenges, Garcetti highlighted the significant growth in trade between the two countries, noting that two-way trade has increased tenfold since 2001. He also pointed out that the United States is India’s largest trade partner, emphasizing the potential for further growth if trade barriers are addressed.
“We need, together, to lower tariffs, not to see them go up. We need, together, to increase trade and to make it more fair and equal,” Garcetti said, calling for deeper collaboration to unlock economic opportunities.
The ambassador outlined specific areas where India and the US could collaborate more effectively. These include protecting trademarks, enhancing intellectual property rights, and ensuring robust infrastructure and transportation systems to facilitate trade. “India’s economic goals require faster and more efficient systems, which are in the American interest as well,” he said.
A Vision for Mutual Prosperity
Garcetti encouraged both nations to embrace a more ambitious approach to their partnership. “Let us renew our commitment to being more ambitious, to not settling for what is good, but reaching for what will be great,” he stated. He reiterated the importance of fostering mutual trust and transparency in trade relations, which he sees as crucial for the long-term success of both economies.
The ambassador stressed that fair trade practices and tariff reductions are not just a matter of economic policy but a step toward building a stronger and more resilient Indo-Pacific region. “We need to, together, make sure that there’s training and talent that meets the needs of companies on both sides of the Indo-Pacific,” he remarked.
Garcetti concluded by emphasizing the urgency of taking bold steps to strengthen the US-India partnership, ensuring that both nations can thrive in a competitive global economy. “Let us recommit ourselves to a mutual path of trust and transparency,” he urged, advocating for a shared vision of prosperity and innovation.
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