2 days ago
‘Some Progress' Yet Differences Over Farm Product Tariffs Hold Up US-India Trade Deal
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New Delhi: Differences over farm product tariff cuts is one of the reasons why officials of the United States and Indian sides have been unable to finalise an early trade agreement even after week-long negotiations, The Hindu Businessline has reported, quoting people aware of the matter.
The outlet's sources said that 'some progress' had been made towards reaching a balanced deal.
'Differences continued over tariff cut demands by the US, especially for farm products, and the need to protect Indian sensitivities,' the source told Businessline.
Reuters, meanwhile, has also reported on 'progress' in the latest round of talks in New Delhi on Tuesday. Government sources told the agency that talks focused on industrial and farm goods, tariff cuts, and non-tariff barriers.
The US team has senior officials from the Office of the US Trade Representative. The delegation was in India from June 4-10. Indian trade ministry officials are headed by chief negotiator Rajesh Agrawal.
Negotiations are likely to continue.
'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,' an official told the news agency PTI. The report noted that the US has a special interest in digital trade, and its digital services providers have often flagged restrictions on cross-border data flows and competition policy as a hindrance in operating in India.
Businessline's source told the outlet that India is ready to bring down tariffs for many US products and the list may include items like automobiles, alcoholic beverages, certain fruits and nuts and chemicals, among other items. India has not agreed to budge on items like rice and wheat.
India has to arrive at a trade deal with the US by July 9, or face the brunt of the 26% 'reciprocal' duties imposed by Trump. The US president and Indian prime minister Narendra Modi had agreed earlier this year to conclude a bilateral trade agreement by fall 2025.
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