US cries foul over tariff, India raises visa concerns

US commerce secretary John Bryson, currently in India, has raised the issue of the high tariff India has on some American products. Bryson said because of this, the US was finding it difficult to penetrate the Indian market. Last year, his predecessor, Gary Locke, had complained about the same issue.

On its part, India has raised issues relating to US visas for its professionals.

Bryson pointed to the high tariff on products such as power-generating equipment, which attracts basic duty of 7.5 per cent and an effective rate of 22 per cent, medical products that draw 7.5 per cent duty and fruits such as grapes and citrus that attract a duty of 30 per cent.

He also expressed concern on US’ sourcing decisions in sectors such as information technology, electronics and solar energy. These, he said, made it hard to invest in India.

Addressing the Federation of Indian Chambers of Commerce and Industry, he said, “If India is not able to readily access US products or attract strategic investments from US businesses, our progress together could slow. In the long term, this could cause significant harm. In addition, we must work to foster greater fairness and a more level-playing field for all of our businesses.”

He also asked the Indian industry to have more “accountability, transparency and integrity” in commercial matters. Bryson, who is leading a high-powered trade mission with a focus on India’s $1-trillion infrastructure sector, also urged India to allow more international competition by being party to the World Trade Organisation’s government procurement agreement to support greater “openness”.

He also met commerce & industry and textile minister Anand Sharma on Monday and discussed issues of bilateral importance. Both sides agreed to renew the US-India commercial dialogue for two more years.

Sharma said, “All issues of concern from both the sides were raised. We particularly raised the issue of the movement of professionals — H1B and L1 visas for professionals, whether they are going from here or are transferred from a foreign location to new ones. There has been concern on the high rate of rejection. Last year, the number of visas declined 28 per cent. We had a very frank discussion, even on issues on which the US is concerned.”

The concern on H1B and L1 visas has been there since 2010, when the US decided to raise the visa fees for both these categories. The state of Ohio had banned off-shore outsourcing of government business, and this, too, has become a cause of concern for the Indian information technology industry.