Non-Tariff Barriers Strain US-India Trade Relations

Current Affairs International Issues

Posted by newadmin on 2025-04-25 08:52:52 |

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Non-Tariff Barriers (NTBs) have become a focal point of concern in US-India trade discussions. US Vice President JD Vance recently called on India to eliminate these trade obstacles to enhance market access and promote smoother bilateral commerce.

NTBs are trade restrictions that do not involve tariffs but still hinder the free flow of goods and services. They include measures such as import bans, product-specific quotas, complex certification requirements, and rules of origin. These barriers often result in increased costs and delays for exporters, complicating international trade operations.

Indian exporters frequently face NTBs in foreign markets. Concerns over pesticide residues and contamination can lead to rejected shipments. Moreover, exporting to countries like China involves burdensome registration procedures and high compliance costs, further challenging India’s global trade competitiveness.

The US has also raised concerns about India's own NTBs. These include import restrictions on animal products, mandatory quality certifications for industrial goods, and non-automatic import licensing. The US National Trade Estimate Report has highlighted these issues as impediments to fair trade.

Service sectors are similarly affected. Limitations on foreign investment in financial services and retail, as well as restrictions on digital trade, create additional hurdles.

In response, India is working to address NTBs by holding bilateral dialogues and developing a dedicated platform through the Department of Commerce to track and resolve exporter concerns. Easing NTBs will be crucial for advancing India’s role in global trade and strengthening its strategic economic partnerships.

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