Chief negotiators of India and US commence trade talks in Delhi

Chief negotiators of India and the US have commenced talks on the proposed trade agreement to iron out issues in the wake of steep tariffs that have created uncertainties for exporters an official said on Tuesday reported news agency PTIBrendan Lynch the Assistant US Trade Representative for South and Central Asia is leading the American team while Rajesh Agrawal Special Secretary in the Department of Commerce is Indias chief negotiatorLynch arrived in India late Monday for a daylong talk with his Indian counterpartThis is the first visit by a highranking US trade official after the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market for buying Russian crude oilThe trade talks have started the official said reported PTIIndia has described the steep 50 per cent tariff as unfair and unreasonableIn February the leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement BTA It was planned to conclude the first tranche of the pact by the fall of 2025 So far five rounds of negotiations have been held and the trade talks for the sixth round which were scheduled from August 2529 were postponed following the imposition of the high import duties reported PTIA senior commerce ministry official had said the meeting between Lynch and Indian officials should not be viewed as the 6th round of negotiations but a precursor to itThe official also said India and the US have been engaged in discussions through virtual mode on a weekly basisThe meeting is taking place within days Prime Minister Narendra Modi warmly reacting to US President Donald Trumps positive assessment of trade ties between the two countries reported PTIDefending its purchase of Russian crude oil India has been maintaining that its energy procurement is driven by national interest and market dynamicsThe government has repeatedly emphasised that it will protect the interests of its farmers dairy producers and MSMEs in all trade dealsOver the past few months both sides have been negotiating an interim trade deal though progress has been slow due to Indias concerns over US demands to open up the agriculture and dairy sectors These sectors remain sensitive for India as they provide livelihoods to millions of peopleIndia and the US initiated trade talks for a just balanced and mutually beneficial Bilateral Trade Agreement BTA in March this year aiming to complete the first stage of the Agreement by OctoberNovember 2025Initially US President Donald Trump announced 25 per cent tariffs on Indian goods even as there were hopes of an interim IndiaUS trade deal that would have otherwise helped avoid elevated tariffsA few days later he imposed another 25 per cent tariff taking the total to 50 per cent citing Indias continued imports of Russian oilThe 50 per cent tariffs came into effect on August 27 US President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit Since assuming office for his second term President Trump has reiterated his stance on tariff reciprocity emphasising that his administration will match tariffs imposed by other countries including India to ensure fair tradeWith inputs from PTI