4-Day Closed-Door Talks On India-US Trade Deal Conclude. What Was Discussed
Significant progress was made in the latest round of talks between India and the United States over a possible interim trade deal expected within weeks
- Date & Time:
- |
- Views: 28
- |
- From: India News Bull
India and the United States are working towards expanding their bilateral trade from the current $190 billion to an ambitious $500 billion by 2030.
New Delhi:
The latest round of negotiations between India and the United States on a potential interim trade agreement has yielded substantial progress, with the deal expected to be finalized within weeks. This agreement aims to dramatically increase the annual trade volume between the two democratic giants from $190 billion to $500 billion by the end of this decade.
American and Indian negotiators engaged in intensive four-day closed-door discussions in New Delhi, concluding on Tuesday. The talks concentrated primarily on enhancing reciprocal market access for industrial and agricultural products, reducing tariffs, and addressing non-tariff barriers, according to individuals familiar with the negotiations.
The American delegation, comprised of officials from the Office of the US Trade Representative, met with their Indian counterparts led by Rajesh Agrawal from the trade ministry. "The negotiations with the US were productive and facilitated progress towards developing a mutually advantageous and balanced agreement, including through securing early wins," a government source informed Reuters news agency.
The enhancement of bilateral digital trade reportedly emerged as another critical area of discussion. The source mentioned that detailed conversations were held regarding various initiatives to improve customs procedures and facilitation measures, adding that both nations are eager to finalize an initial portion of the comprehensive trade agreement soon, with discussions set to intensify in the coming days.
THE NEGOTIATION DETAILS
During today's discussions, India resisted American requests to open its markets to wheat, dairy, and corn imports, while offering to reduce tariffs on premium US products such as almonds, pistachios, and walnuts. India also requested the US to withdraw the 10 percent baseline tariff imposed during the Trump administration under a national emergency. However, the US delegation opposed this request, pointing out that even the United Kingdom was subject to this tariff under its recent bilateral trade agreement.
Regarding steel, India sought exemption from Washington's 50 percent tariff imposition. New Delhi also indicated its willingness to increase imports of American energy resources, including LNG, crude oil, and coal, while also considering purchases of defense equipment.
POTENTIAL FOR A JUNE AGREEMENT?
Both nations are striving to sign an initial agreement within June, possibly during the G7 Summit in Canada, where Donald Trump and Prime Minister Modi are scheduled to meet - though this event is less than a week away.
Amid growing criticism over his hurried trade decisions, Donald Trump is reportedly eager to secure an agreement with India before the expiration of his 90-day pause on reciprocal tariffs, which includes a 26 percent tariff on India that would significantly impact exports of textiles, footwear, rice, and shrimp.
Interestingly, while trade ministry negotiators were fine-tuning the US trade deal in New Delhi, Union Minister Piyush Goyal was in Switzerland working on another major trade agreement with the European Union - India's second-largest trading partner.
Regarding the India-US trade pact, Mr. Goyal stated that India is ready to proceed by addressing simpler issues first. Government officials added that more complex matters could be negotiated in subsequent talks, suggesting India's willingness to agree to an interim deal.
India aims to sign the next phase of the bilateral trade agreement with the United States by September or October, according to these officials.