India-US trade deal: Here's what Washington DC wants from New Delhi and what we know so far
US President Donald Trump on Thursday said that a 'very big trade deal' with India is on the cards as negotiators from New Delhi reached Washington DC, where America has reportedly demanded a few tariff cuts that India is not ready to agree with.
Chief Negotiator Rajesh Aggarwal is leading a delegation from India to the US as the team works with officials from the Office of the United States Trade Representative (USTR), navigating through a July 9 deadline to secure an interim deal before temporary tariff protections expire.
However, roadblocks in the conversations have been delaying progress in securing a bilateral trade agreement during the high-stakes negotiations, reportedly due to some demands from the US.
Here's what we know so far.
According to a report by ANI, several contentious issues have surfaced during the trade negotiation conversations between the US and India.
The US is pressuring India into lowering duties on American agricultural and dairy products and to provide market access for genetically modified (GM) crops.
However, India has resisted these demands firmly, saying that it would impact domestic food safety, public health and leave millions of farmers unprotected.
The Indian delegation has also reportedly resisted an offer of broad-based access to the US agricultural and dairy sectors, which can be politically and economically sensitive.
As per a report by Reuters, the Indian side wants to push for a rollback on the now-paused 26 per cent tariff that the US imposed on New Delhi, which is set to take effect if a deal is not reached by July 9.
Negotiators are also demanding concessions on existing US tariffs on steel and auto parts, which American negotiators have not yet agreed to, according to Indian government sources quoted by Reuters.
'The US side first wants India to commit to deeper import tariff cuts on farm goods like soybeans and corn, cars and alcoholic beverages along with easing of non-tariff barriers,' an Indian official was quoted as saying by Reuters.
This has led to a disagreement between India and America.
However, Indian officials have ensured that protecting the country's interests will be of supreme importance during the trade talks.
"Protecting India's interests will be supreme in India-US BTA talks," an Indian official close to the negotiations was quoted as saying by ANI.
Despite these challenges, both sides remain committed to reaching an interim agreement before the deadline.
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