Trade Talks Near Agreement
India and the United States are in high-level negotiations for a trade deal. Sources indicate that a mini trade pact or an interim agreement could be signed in the next 48 hours. Negotiations are taking place in Washington, as affirmed by national media.
Important Sectors in Discussion
The trade deal focuses primarily on agriculture, automobiles, industrial products, and labor-intensive items. There are some differences on issues, particularly in the agriculture and dairy sectors. India has no desire to open its dairy market to foreign firms. However, the US is requesting concessions in many sectors.
US Requests for Concessions
The US is seeking greater access for electric vehicles, wines, petrochemicals, dairy products, apples, nuts, and genetically modified produce. It is also seeking advantages in the industrial and automotive industries.
Tariff Issues Between the Countries
At present, a 26 percent tariff imposed by the Trump administration on Indian imports is suspended. The suspension is only until July 9. The normal tariff rate is 10 percent. India is insisting on a rollback or cut in this 26 percent rate as part of the negotiations currently underway.
Final Round of Negotiations Underway
The last announcement would be made prior to July 8. Rajesh Agarwal, Special Secretary in the Department of Commerce, is heading the Indian delegation in Washington. He has initiated the last round of negotiations. US President has said publicly that he will not extend the tariff suspension after July 9. This mounts pressure on both sides to finalise the agreement early.
