2 weeks Ago By Moneycontrol
As an Indian team is set to visit the US from April 23 over the proposed trade deal between them, this stage of negotiation is likely to primarily focus on goods wherein both sides see room to reduce tariffs, a source in the know of the matter said. “Currently, it is largely restricted to goods, maybe they are starting at 19 chapters since it is the first tranche. The rules of engagement, the items that need to be discussed will be largely those where both the nations have inputs on and may start taking a view,” this source said.
India's chief negotiator, Additional Secretary, Department of Commerce Rajesh Agrawal, is expected to the lead the team for the in-person talks between the two nations reportedly for a three-day visit ending till April 25. Agarwal is set to become Commerce Secretary from October. Moneycontrol had earlier reported that while India sees room to reduce taxes on certain farm goods such as American almonds and pistachios, in return, New Delhi is seeking lower duties on exports such as automobile parts and essential medicines.
“The other issues such as mobility and non-tariff barriers may get included once the negotiations continue,” the source cited above added. US has also taken up non-tariff barriers as an issue, such as localisation of digital content, certification of telecom equipment outside of labs, among others. But that most likely will be taken up in the later stages.
To be sure, media reports citing sources earlier said that India and US will start negotiations on 19 chapters including tariffs, non-tariff barriers, and customs facilitation. The commerce ministry last week noted that India and the US are looking to conclude negotiations for the first tranche of the proposed Bilateral Trade Agreement (BTA) well before the agreed timeline of Fall of 2025, after both nations signed the terms of reference for the pact. Finance Minister Nirmala Sitharaman on April 20 said that India is actively engaging with the United States to seal the BTA by fall this year, by when the first phase of the pact will hopefully be concluded.
The BTA is part of a new goal - Mission 500 - aiming to more than double bilateral trade between the two countries to $500 billion by 2030. India ranks tenth among the top nations that export to US, at $91 billion in 2024, with Mexico, China and Canada occupying the top three positions. The US is India's top export destination, and its fourth-largest source of imports.
