India, US to resume bilateral trade negotiations amid tariff concerns
An Indian delegation has reached Washington to hold a fresh round of talks on the Bilateral Trade Agreement (BTA) with the US, focusing on agriculture, automobiles, and tariffs. The four-day discussions are expected to shape a potential interim deal
New Delhi: An Indian Commerce Ministry team has reached Washington for another round of talks on the proposed bilateral trade agreement (BTA), which will begin on Monday, an official said.
Chief negotiator of India and special secretary in the department of commerce Rajesh Agrawal will join the team on Wednesday. The four-day talks will end on Thursday. India’s deputy chief negotiator for the proposed BTA has reached Washington for the talks on the first phase of the BTA, the official said.
The visit assumes significance as both sides have to iron out issues in sectors, like agriculture and automobiles. It is also important as the US has further postponed the imposition of additional tariffs on several countries, including India, until August 1.
Last week, an official has said that “we are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue”.
Earlier this month, the Indian team was in Washington for talks, with negotiations taking place from June 26 to July 2. The team has once again reached the US for negotiations. India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector.
India is seeking the removal of this additional tariff (26 per cent). It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties.
US President Donald Trump announced heavy tariffs on a number of countries, including India, on April 2. However, it was soon postponed for 90 days until July 9 and later to August 1.
From July 7, the Trump administration has issued tariff letters to a number of its trading partners, including Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Laos, Serbia, and Tunisia.
The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, like dairy items, apples, tree nuts, and genetically modified crops.
On the other hand, India is seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.
The two countries are looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. Before that, they are looking for an interim trade pact.
India’s merchandise exports to the US rose 21.78 per cent to USD 17.25 billion in April-May this fiscal year, while imports rose 25.8 per cent to USD 8.87 billion.
