High Indian tariff walls could harm our trade relations: US Secretary

New Delhi, Mar 26 (PTI) 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 luncheon meeting of Indian industry chamber FICCI in New Delhi. He further said, "Our progress (if India does not lower duties) ... will slowdown in the long-term or would cause meaningful harm". Bryson, who is leading a 16-member US business delegation, will also visit Jaipur and Mumbai. America has been asking India to ease restrictions on import 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. India, Bryson said, should provide a more level-playing field for US businesses. It also needs to build on its effort to support more accountability, transparency and integrity in its commercial actions. Besides, he said, India should join the World Trade Organisation (WTO) Government Procurement Agreement (GPA). "Allow more competition by joining WTO agreement on government procurement", he said. India is an observer of the GPA which deals with the issues relating to government purchases. In 2010-11, India-USA bilateral trade stood at USD 45.6 billion. During the April-January period of the current 2011-12 fiscal, the US invested USD 913 million in India. Meanwhile, India's Commerce and Industry Minister Anand Sharma in his meeting with Bryson raised concerns over high rate of visa rejections by America. "There have been concerns over the high rate of visa rejections last year. There is a 28 per cent decline," Sharma told reporters after the meeting. Both the ministers also discussed the issue of FDI In multi-brand retail. "They (the US) are aware of our decision (on the retail)," he added. PTI