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- India US Trade Talks | Interim Deal Finalized? India To Buy $500 Billion US Products
New Delhi43 minutes ago
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4 days of high level trade talks will start between India and America from today i.e. Monday. Officials of both the countries will finalize the interim trade agreement in Delhi, the framework of which was agreed upon in February this year.
The purpose of the meeting is to give final legal shape to the interim agreement.
In this 4-day meeting, the American delegation is being led by the chief negotiator Brendan Lynch. At the same time, the command of the Indian team is in the hands of Additional Secretary and Chief Negotiator of Commerce Ministry, Darpan Jain.
According to the Commerce Ministry, the main objective of this meeting is to legally finalize the interim agreement. Along with this, both sides will take forward negotiations in many important areas like Market Access, Non-Tariff Measures, Customs, Trade Facilitation, Investment Promotion and Economic Security Alignment under the Comprehensive Bilateral Trade Agreement (BTA).
The framework was made in February: Now after Trump’s new decisions, re-calculation will have to be done again.
- The two countries had finalized the framework of an interim agreement on February 7 as the first phase of a bilateral trade agreement. Under this, America had agreed to reduce the tariff on India from 50% to 18%. Also, the 25% tariff imposed on Indian goods due to buying Russian oil was to be removed and the remaining 25% was to be reduced to 18%.
- On February 20, the US Supreme Court ruled against President Trump’s massive reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. After this, Trump announced to impose a uniform tariff of 10% on all countries for 150 days from February 24.
- Due to this major change, the talks to be held in February were postponed. Later in April (April 20 to 23), the Indian team visited Washington, and now the US team has come to India to take the talks forward. In the changed environment, both the countries will have to re-calculate this deal.
India will buy American products worth $500 billion
Under the existing framework decided, India has proposed to remove or reduce tariffs on all industrial goods and agricultural products of America. This mainly includes Dried Distillers Grains (DDGs), Red Sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.
In return, India has expressed its desire to buy energy products, aircraft and aircraft parts, precious metals, technology products and coking coal worth about $ 500 billion (about ₹ 47 lakh crore) from America in the next 5 years.
What is an interim trade agreement?
It takes time—several months or years—to create a complete trade agreement (FTA) between two countries. Until then, both countries reach a small, temporary agreement to provide some immediate benefits. This is called interim trade agreement.
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