Final Talks Are Under Way
India-U.S. talks on a trade pact are moving along in a smooth manner. Official sources say the announcement may be made before July 8. Special Secretary in the Commerce Department Rajesh Agarwal is attending the final round of negotiations in Washington, D.C.
Suspension of Tariffs to Expire on July 9
Former President Trump's tariffs are only suspended until July 9. The baseline tariff currently stands at 10 percent. President Joe Biden recently informed Fox News that he has no intention of continuing the suspension. As a result, the 26 percent tariffs could be reinstated unless a deal is struck.
India Seeks Concessions on High Tariffs
India is asking for relief on the 26 percent import tax. These tariffs were earlier imposed on Indian goods. The 10 percent tariff remains in place for now, but the additional tax could be reinstated after July 9.
Key Focus Areas of the Trade Deal
The proposed deal focuses on four main sectors:
- Agriculture
- Automobiles
- Industrial goods
- Labor-intensive products
Major Sticking Points
There is slow progress in dairy and agriculture. India is not ready to allow its dairy market to foreign firms. The United States is demanding concessions for:
- Electric cars
- Wines
- Petrochemicals
- Dairy products
- Apples
- Nuts
- Genetically modified crops
Trump Recently Spoke on Deal Hopes
Former President Trump last Friday indicated that a deal with India is possible. He referred to it as a big trade deal.
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