India can be alternative to China for US cos: Greer

NEW DELHI: US Trade Representative Jamieson Greer Tuesday said the India-US deal will be a very important one that will reverberate for years to come, while stating that India could be an alternative to China for American companies looking to diversify their production.

"We know that many companies already are going in that direction. We want the supply chains to be here in the US and as close to home as possible. We know there's a process when you are shifting from globalisation and the challenges that are present to our country. when you are shifting to a more resilient and secure economy. At some point, you have to shift supply chains around, India can be a waystation for that. They have a lot of folks there, manufacturing capacity. Of course, we want to make sure American worker is first, but to the extent we want to import from other countries, India can be a good source as long as it is balanced and it is fair," he said in a TV interview. The comments were seen to be supporting India as a "trusted partner" in the global supply chain.


Greer reiterated that India has started winding down purchases of Russian oil and ramping up supplies from the US. He said that India has also started taking down digital services tax.

While describing US-China trade ties as "stable", he said that Donald Trump's deals were changing the global trade system in favour of America. "Just over the past 10 days, we have signed agreements with Argentina, Bangladesh, India, before that with Guatemala and El-Salvador and all these deals open these market more to US exports and they also talk about cooperation in dealing with distortions in the global markets," he said, adding that rules are being worked in ways that third country exports are not routed to the US, a comment targeted at Chinese products.

Asked about Trump administration's strategy in case of an adverse ruling by the US Supreme Court, Greer said: "Tariffs are going to be part of the landscape going forward. If the Supreme Court goes the wrong way, then we will find ways to use tools to adjust some of the unfair trade policies that these countries are pursing."