US Urges India To Ease Trade Rules, India Highlights Global Challenges
Non-tariff barriers (NTBs) are trade restrictions that don’t involve direct taxes or duties. They include strict rules, complex paperwork, or special licenses that make it hard for goods and services to move between countries. While some rules protect health and the environment, others go too far and create unfair obstacles for businesses trying to trade.
How These Rules Affect Traders
These rules can make trading very expensive and slow. Exporters must spend more money on testing, certification, and changes in packaging or labeling. For example, an Indian farmer exporting mangoes to Europe may have to pay for lab tests to prove there are no harmful pesticides.
Shipments can also be delayed due to complicated checks at borders. This causes stress and uncertainty for businesses, especially small traders who cannot afford the extra costs.
What Indian Exporters Face
Indian exporters, especially those sending food or farm products, often face problems abroad. Some countries reject Indian goods due to higher pesticide levels or diseases like foot-and-mouth. This results in losses for farmers and traders. They also have to deal with tough inspection rules before they can even ship their goods.
The US’s Concerns with India
In a recent visit to Jaipur, US Vice President JD Vance asked India to reduce such barriers. According to a US trade report, American goods like dairy, chemicals, and certain tech products face difficulties entering India due to strict import rules or licensing requirements.
One example is India’s rule on dairy imports: the animals from which the milk comes must not have eaten feed made from certain animal parts, a rule the US says has no clear health reason.
Barriers in Services and Digital Trade
The US also says that foreign companies face limits in sectors like banking and retail in India. There are also rules that affect digital trade, such as restrictions on how online payments work. These rules can make it harder for international companies to do business in India’s growing digital economy.
India’s View and Action
India has its own complaints too. Indian goods also face NTBs in countries like the US, EU, Japan, and China. To support Indian exporters, the government is building a platform where they can report the problems they face. India is also raising these issues during meetings with other countries, hoping to find fair solutions.
The Bigger Picture
Trade barriers hurt small businesses, farmers, and workers the most. As the world becomes more connected, countries must work together to make trading easier and fairer. India and the US are two big economies, and if they can resolve these issues, it will benefit millions of people on both sides.
news