India-US Trade Deal: Intense trade talks between India and the US continued for the sixth straight day on Tuesday in Washington. The negotiations reached a critical stage, as India tried to get better market access for its labour- intensive products, according to an official.
The Indian delegation, led by Special Secretary Rajesh Agarwal from the Department of Commerce, held talks in Washington about an interim trade agreement with the US.
The Indian officials extended for their stay beyond the original two-day schedule, which had started on June 26.
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India-US Trade Deal: These discussions hold significance as US President Donald Trump’s deadline to suspend reciprocal tariffs was approaching on July 9. The official told the PTI that both countries wanted to finish the negotiations before that date.
The official added that if the proposed trade talks failed, the 26 percent tariffs would come back into effect.
Both countries were working to finish talks on the first phase of the bilateral trade agreement (BTA) by autumn (September-October) that year but the agreement aimed to raise two-way trade to $500 billion by 2030, compared to the current $191 billion.
The countries were working to set up an interim trade agreement before starting the first phase.
India expected duty cuts for several labour-intensive sectors, including textiles, garments, gems and jewellery, leather goods, plastics, chemicals, shrimp, oilseeds, grapes, and bananas. The source added that these cuts would not hurt any US domestic interests and were unlikely to face opposition.
The US suspended the reciprocal tariffs it had placed on Indian imports on April 2 for 90 days, but the 10 percent basic tariff stayed in effect. Meanwhile, India aimed to get an exemption from the 26 additional tariffs imposed by the US.
On the other hand, the US expected duty cuts in both agriculture and dairy from India. But it was difficult for India to agree because Indian farmers mostly do subsistence farming and have small land holdings.
The US sought duty cuts on industrial products, electric vehicles, wines, petrochemical goods, dairy, and agricultural items such as apples, tree nuts, and genetically modified crops.
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