India has toughened its stance on agricultural issues as trade negotiations with the United States in Washington enter a decisive phase, officials told PTI on Monday.
The Indian delegation, led by Rajesh Agrawal, Special Secretary in the Department of Commerce, is currently in Washington for discussions on an interim trade agreement. The stay of the Indian team, which was initially scheduled for just two days, has already been extended by three days until June 30 and is likely to be extended further, an official said.
A deal before the July 9 deadline?
According to the official, both sides are working against the clock to conclude a deal before the July 9 deadline, which marks the end of a 90-day suspension of a 26 per cent reciprocal tariff imposed by the US on Indian goods.
“If the proposed trade talks fail, the 26 per cent tariffs will come into force again,” the official said.
Another official told PTI that the commerce ministry has already informed domestic exporters and industry stakeholders that talks are underway for the first phase of a broader bilateral trade agreement, which will unfold over multiple phases.
These discussions are viewed as critical, as both countries aim to finalise an interim pact before the July 9 deadline to avoid the re-imposition of steep US tariffs.
India toughens stance
Meanwhile, the US is pushing for duty concessions on agricultural and dairy products, industrial goods, electric vehicles, wines, petrochemical products, apples, tree nuts, and genetically modified crops.
However, officials said these demands pose a challenge for India, as the agriculture and dairy sectors are politically sensitive and central to the livelihoods of small and marginal farmers engaged in sustenance farming.
Notably, India has not opened up its dairy sector in any of its previous free trade agreements.
On its part, India is seeking duty concessions for labour-intensive sectors such as textiles, garments, gems and jewellery, leather, plastics, chemicals, shrimp, oilseeds, grapes, and bananas under the proposed trade pact.
Officials told PTI that both sides are also looking to conclude talks for the first tranche of the Bilateral Trade Agreement (BTA) by September-October this year. The larger objective of the pact is to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
Before reaching that stage, however, both countries are focusing on a more immediate interim trade pact.
The US delegation was in India for the previous round of discussions from June 5 to June 11. Talks are expected to continue in the coming weeks through both virtual and in-person meetings.
The additional 26 per cent tariff was imposed by the Trump administration on April 2 but was suspended for 90 days. The 10 per cent baseline tariff remains in place. India is seeking complete exemption from the additional tariff.
With inputs from PTI
The Indian delegation, led by Rajesh Agrawal, Special Secretary in the Department of Commerce, is currently in Washington for discussions on an interim trade agreement. The stay of the Indian team, which was initially scheduled for just two days, has already been extended by three days until June 30 and is likely to be extended further, an official said.
A deal before the July 9 deadline?
According to the official, both sides are working against the clock to conclude a deal before the July 9 deadline, which marks the end of a 90-day suspension of a 26 per cent reciprocal tariff imposed by the US on Indian goods.
“If the proposed trade talks fail, the 26 per cent tariffs will come into force again,” the official said.
Another official told PTI that the commerce ministry has already informed domestic exporters and industry stakeholders that talks are underway for the first phase of a broader bilateral trade agreement, which will unfold over multiple phases.
These discussions are viewed as critical, as both countries aim to finalise an interim pact before the July 9 deadline to avoid the re-imposition of steep US tariffs.
India toughens stance
Meanwhile, the US is pushing for duty concessions on agricultural and dairy products, industrial goods, electric vehicles, wines, petrochemical products, apples, tree nuts, and genetically modified crops.
However, officials said these demands pose a challenge for India, as the agriculture and dairy sectors are politically sensitive and central to the livelihoods of small and marginal farmers engaged in sustenance farming.
Notably, India has not opened up its dairy sector in any of its previous free trade agreements.
On its part, India is seeking duty concessions for labour-intensive sectors such as textiles, garments, gems and jewellery, leather, plastics, chemicals, shrimp, oilseeds, grapes, and bananas under the proposed trade pact.
Officials told PTI that both sides are also looking to conclude talks for the first tranche of the Bilateral Trade Agreement (BTA) by September-October this year. The larger objective of the pact is to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030.
Before reaching that stage, however, both countries are focusing on a more immediate interim trade pact.
The US delegation was in India for the previous round of discussions from June 5 to June 11. Talks are expected to continue in the coming weeks through both virtual and in-person meetings.
The additional 26 per cent tariff was imposed by the Trump administration on April 2 but was suspended for 90 days. The 10 per cent baseline tariff remains in place. India is seeking complete exemption from the additional tariff.
With inputs from PTI
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