India-US interim trade talks in final phase, deal likely before July 9
India has hardened its position on giving duty concessions to American farm and dairy products as these are politically sensitive sectors
New Delhi: The Indian team, led by chief negotiator Rajesh Agrawal, has returned from Washington after concluding another round of talks on an interim trade pact, but discussions will continue as certain issues in the agri and auto sectors still need to be resolved, an official said.
The official said that the talks are in the last phase and its conclusion is expected to be announced before July 9.”Indian team is back from Washington. Negotiations will continue. There are certain issues which need to be resolved in agriculture and auto sectors,” the official said.
The Indian team was in Washington for negotiations on an interim trade agreement with the US from June 26 – July 2. These talks are important as the suspension of Trump’s reciprocal tariffs is ending on July 9.
The two sides are looking at finalising the talks before that. India has hardened its position on giving duty concessions to American farm and dairy products as these are politically sensitive sectors.
On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent tariff.
India has not opened up the dairy sector for any of its trading partners in free trade pacts the country has signed so far. The US also wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agricultural items like apples, tree nuts, and genetically modified crops.
India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.
The two countries are also looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. The pact is aimed at more than doubling bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.
Before the first tranche, they are trying for an interim trade pact. The US team was here last for the talks. India’s merchandise exports to the US rose by 21.78 per cent to USD 17.25 billion in April-May this fiscal, while imports rose by 25.8 per cent to USD 8.87 billion.
