The US has asked New Delhi to lift the “de facto embargo” on import of American soda ash which would prove to be an “important step in expanding the country“s growing commercial relationship with Ind…
The US has asked New Delhi to lift the “de facto embargo” on import of American soda ash which would prove to be an “important step in expanding the country“s growing commercial relationship with India”. US Commerce Secretary William Daley and US Trade Representative (USTR) Charlene Barshefsky have sent a joint letter to Minister of Commerce and Industry Murasoli Maran “outlining their concerns over Indian practices preventing US soda ash industry from exporting to the country”, the office of the USTR said recently. “US soda ash,” said Barshefsky, “is being shut out of the Indian market. The letter we sent to minister Maran reflects the administration“s continued commitment to fair and equitable treatment of US products abroad.” Daley said: “Improved market access for all US products overseas is a high priority for the US. Free and fair trade is the cornerstone of the administration“s trade policy, and resolving the soda ash issue would be an important step in expanding our growing commercial relationship with India.” The US natural soda is of the highest quality and sought by glass manufacturers world-wide, including India“s glass industry. However, a de facto embargo on soda ash has been maintained by the Indian government as a result of a temporary injunction imposed by the Monopolies and Restrictive Trade Practices Commission in 1996, an USTR release said. “In addition to the de facto embargo, India“s 1999-2000 budget raised import tariffs on soda ash to 35.8%, making it the highest in the world. The tariff, along with other import fees, puts a tariff burden of 69.9% burden on US soda ash imports. “The American natural soda ash corporation has estimated that India would have to lower its import tariffs on soda ash to 12% before US soda ash producers could compete effectively in the Indian market,” the release said. The release said that an industry petition under the generalised system of preference programme was also “under active review.” This programme allows duty-free imports for certain products from developing countries.