India can win big from inevitable $350-550bn exports moving out of China: Credit Suisse
India could potentially be one of the big winners ...
US President Donald Trump’s administration first imposed tariffs on Chinese imports in 2018 in a bid to win concessions from China, which responded with tit-for-tat tariffs. A deal remains elusive as the dispute escalates between the world’s two largest economies.
In New Delhi, Mr Ross spoke about the “third kind of barrier” that “bothers” the US, which he said was neither about competitive advantage nor one country actually needing a certain product because of locational constraints. “If you look at our trade deficit it has two components, one’s called automotive and the other’s called China,” he said.
“We believe that most of the things we’re requesting particularly of India would not only help us vis a vis India, we think a lot of them would help India itself”
During his comments, Mr Ross made the distinction between “small trade deficits with other countries” and “China” as two separate issues. “We believe that most of the things we’re requesting particularly of India would not only help us vis a vis India, we think a lot of them would help India itself,” he added.
“So, (I) don’t want you to think that we’re just focusing on deficit, we’re focusing also on total trade. And what the world needs is more total trade. This recent diminution in the forecast, that world trade will be down to 1.2 per cent this year, is a very bad omen for the world because normally, trade, global trade has been growing at a percentage point or so. So if it’s really true, that world trade will only grow at around 1 per cent. That does not speak very well for the world GDP. So that’s a source of separate concern,” Mr Ross said.
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