India-US trade deal: What Indian & American officials discussed during the week-long deliberations; first phase likely soon
India-US trade deal soon? During week-long discussions on the proposed bilateral trade agreement, Indian and American teams deliberated on various aspects including market access, digital commerce, and customs facilitation procedures.To progress towards finalising a comprehensive BTA, a delegation from the United States, headed by the Additional US Trade Representative, conducted meetings in India from June 4-10.Both countries have agreed to maintain negotiations to swiftly conclude the first phase of the Bilateral Trade Agreement (BTA). The two countries are engaged in negotiations for the first segment of a mutually advantageous, multi-sector BTA, with a target completion by fall 2025.India-US trade deal discussions:An official told PTI, “During the visit, in-depth negotiations were held on various elements of the proposed BTA that among others included areas such as market access, SPS (sanitary and phyto-sanitary/TBT (technical barriers to trade), digital trade, customs and trade facilitation and legal framework.”The United States maintains particular focus on digital commerce, with its digital service companies frequently highlighting how data flow limitations and competition regulations create operational challenges in India.Sanitary and Phytosanitary (SPS) measures concentrate on safeguarding human, animal and plant wellbeing from food safety risks and diseases. Technical Barriers to Trade (TBT) encompasses the regulatory standards and compliance procedures related to SPS.These regulations primarily affect the agricultural sector. The customs and trade facilitation component aims to enhance and simplify trading procedures.Also Read | ‘Unfairly low prices’: India slaps anti-dumping duty on China & Japan for two substances; says harming local producersDiscussions with American representatives proved constructive, advancing towards a balanced and mutually advantageous agreement, including some immediate benefits.The American delegation’s visit held significance as both nations are expected to reach an interim trade arrangement by June, with India seeking complete exemption from the 26 per cent reciprocal duty on domestic products.The United States has delayed implementing proposed tariffs until July 9, with anticipation of finalising an interim trade agreement before this deadline.America retained its position as India’s principal trading partner for the fourth straight year in 2024-25, with two-way trade reaching $131.84 billion.The United States represents approximately 18 per cent of India’s total goods exports, 6.22 per cent of imports, and 10.73 per cent of the country’s overall merchandise trade.Also Read | ‘Adopt dual-track approach to…’:NITI Aayog has important suggestion on India-US trade dealMeanwhile, Commerce and Industry Minister Piyush Goyal on Tuesday expressed confidence regarding the proposed trade agreement between India and the United States, noting it as a crucial chance for both countries to enhance their economic collaboration during current discussions.During his Switzerland visit, Goyal spoke to journalists, emphasising the vital nature of India-US ties and the possibilities for considerable expansion in two-way trade through a properly structured agreement.“We believe this presents an opportunity for us to expand our bilateral trade and strengthen our partnership,” Goyal stated, underlining the strong basis of India-US relations. He described the two countries as “close friends, allies and strategic partners” with established connections across business, geopolitical and cultural spheres.
