High tariff walls could harm our trade relations: US Secretary

NEW DELHI: The US today asked India to lower import duties on various items including capital goods and fruits, saying high tariff walls could "harm" trade relations between the two countries.

"It would be a miss, if I would not mention about the barriers which still exist in building our economic relationships. There are tariffs on American products which are still too high," US Commerce Secretary John Bryson said at a Ficci luncheon meeting here.

He further said, "Our progress (in absence of India lowering duties)... will slowdown in the long-term or would cause meaningful harm".

Bryson, who is leading a 16-member business delegation, will also visit Jaipur and Mumbai.

America has been asking India to ease restrictions on imports of products like capital goods and medical products in recognition of stronger economic ties between the two countries.

Pointing out that India's high import duties on the US products are impacting American businesses, Bryson said, "Capital goods such as power generation equipment faces a basic duty of 7.5 per cent and effective rate of 22 per cent. Grapes, citrus fruits and other fruits face a 30 per cent duty."

He said India's sourcing decisions in sectors like IT, electronics and solar energy are also tough.

"This makes it harder to invest in India, if India is not able to readily accept the US products...," the US Commerce Secretary said.