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LISA NAPOLI: The price of things like auto parts and jewelry from developing countries is about to go up. A revamped trade program signed into law by President Bush means those things may now be taxed. From New Delhi, Miranda Kennedy says there go the trade preferences.
MIRANDA KENNEDY: India stands to lose billions of dollars if the U.S. starts taxing its products like gold jewelry and brass lamps.
In an effort to prevent that, the country petitioned the trade office to continue its duty-free benefits next year.
Last year, the U.S. imported $19 billion of goods from India. $4 billion of that was duty-free.
Trade analyst TS Vishwanath says India is willing to bring down its own tariff rates if it will help it keep the U.S. preferences.
TS VISHWANATH: Here is India which has now come out in saying that we are ready to bring down our customs duties, our tariff rates. And we now want to engage with whom we believe are our major trade partners. I think that’s a huge statement.
India is not alone. A dozen other countries may lose their trade preferences too as the U.S. tries to repair trade imbalances with the developing world.
In New Delhi, I’m Miranda Kennedy for Marketplace.