“The engagements were marked by a spirit of cooperation and pragmatism, with both sides reaffirming their commitment to concluding a mutually beneficial agreement that strengthens bilateral trade and economic ties,” the commerce and industry ministry said in a statement Thursday, after the conclusion of a four-day visit of the US delegation to New Delhi. The team from the office of the US Trade Representative (USTR) was led by chief negotiator Brendan Lynch.
Positive Signs Both sides hold wide-ranging discussions on trade, customs, economic security and other areas of mutual interest
The discussions took place in the backdrop of the USTR proposing an additional 12.5% duty on 54 countries, including India, over their alleged failure to restrict imports of goods produced with forced labour in third countries. It has proposed new tariffs on most Indian goods under Section 301 of the US Trade Act of 1974, concerning forced labour, besides initiating a separate probe on excess industrial capacity.
Commerce and industry minister Piyush Goyal said Monday he was hopeful of finalising the first tranche of the proposed bilateral trade agreement (BTA) with the US soon. Goyal highlighted that the two sides have finalised most elements of the first phase, with the talks currently focused on a few minor issues, “commas and full stops”.
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US Ambassador to India Sergio Gor said 99% of the things have been finalised. Commerce secretary Rajesh Agrawal had earlier said the trade deal could be finalised before July 24 when the uniform 10% additional global tariffs applied by the US expire. Officials have said that the key focus of the negotiations will be on getting relief on Section 301 probes, and New Delhi achieving lower tariffs than its competitors, adding that the deal could be firmed up if “we get the terms fair, equitable, and balanced”.
US Trade Representative Jamieson Greer could visit India once the broad contours of the agreement are finalised, an official said, signalling progress in the negotiations.
The Indian side had visited Washington from April 20 to 23 for in-person meetings with US counterparts.
The two sides issued a joint statement on February 7, agreeing on a framework for an interim agreement on reciprocal and mutually beneficial trade. The framework reaffirmed their commitment to the broader India-US BTA negotiations.
Under the February 7 interim agreement, the US removed a 25% penal tariff imposed on India for buying Russian oil and agreed to cut reciprocal tariffs to 18% from 25%. However, before the deal was signed, the US Supreme Court on February 20 struck down tariffs imposed under the International Emergency Economic Powers Act. On February 24, Washington imposed a temporary 10% blanket tariff on all countries for 150 days under Section 122 of the Trade Act of 1974.