Chief negotiator and special secretary in the Department of Commerce, Rajesh Agrawal, will join the delegation on Wednesday. The four-day discussions will run from Monday through Thursday, the news agency reported
India is seeking the removal of a 26 percent tariff. Representational Pic/File
An Indian Ministry of Commerce delegation has arrived in Washington in the US for a fresh round of negotiations on the proposed bilateral trade agreement (BTA), commencing on Monday, an official stated, reported the PTI.
Chief negotiator and special secretary in the Department of Commerce, Rajesh Agrawal, will join the delegation on Wednesday. The four-day discussions will run from Monday through Thursday, the news agency reported.
India’s deputy chief negotiator for the BTA has already reached Washington ahead of the talks, as per the official. These discussions are pivotal, particularly concerning agriculture and automotive sectors. They are timely, given that the United States has postponed the imposition of additional tariffs on several countries -- including India -- until August 1.
Asked whether an interim trade deal could materialise before August 1, an another official stated, “We are talking about a BTA. How it progresses, whether there will be a first phase, second phase -- whatever phase -- will be mutually decided. We are doing our job; the remaining aspects we leave to others. We are progressing in terms of a BTA and aiming for a mutually beneficial solution,” according to the PTI.
Last week, an official had said, “We are not differentiating between an interim deal or the first phase of the BTA. We are negotiating a comprehensive agreement. Whatever is finalised we can package as an interim deal while discussions on the rest continue,” as per the PTI.
Earlier this month, the delegation had engaged in talks in Washington from June 26 to July 2, and have returned for further negotiations.
India has taken a firm stance against US demands for duty concessions on agricultural and dairy products. New Delhi has hitherto not granted any such concessions in free trade agreements for the dairy sector.
India is seeking the removal of a 26 per cent tariff, alongside easing duties on steel and aluminium (50 per cent) and automobiles (25 per cent). It reserves the right under WTO rules to impose retaliatory duties.
US President Donald Trump announced heavy tariffs on several countries, including India, on 2 April. These were initially deferred for 90 days until 9 July, and then extended to August 1, reported the PTI.
From July 7, the US administration issued tariff notification letters to numerous trade partners, including Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Laos, Serbia, and Tunisia.
The US is seeking duty concessions on certain industrial commodities, automobiles (particularly electric vehicles), wines, petrochemicals, and agricultural products such as dairy, apples, tree nuts, and GM crops. Conversely, India is seeking reduced tariffs for labour-intensive industries including textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oilseeds, grapes, and bananas under the proposed agreement.
Both nations aim to conclude negotiations for the first tranche of the BTA by autumn (September-October) this year, with the aim of securing an interim pact beforehand.
India’s merchandise exports to the US rose by 21.78 per cent to USD 17.25 billion in April-May, while imports increased by 25.8 per cent to USD 8.87 billion this fiscal year.
(with PTI inputs)
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