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US delegation in India to discuss trade pact: What will be on agenda?

A high-level US delegation visits New Delhi to advance bilateral trade negotiations, focusing on tariff reductions, market access, and resolving disputes ahead of July 9 deadline Krishnanshu Panda New Delhi A high-level US trade delegation is in New Delhi on June 5–6 to advance negotiations on a Bilateral Trade Agreement (BTA) with India. The visit follows Union Commerce Minister Piyush Goyal's recent trip to Washington and aims to finalise an interim trade deal by July 9, the deadline set by US President Donald Trump following a 90-day pause on new tariffs. What is India seeking? India has proposed significant tariff reductions, potentially lowering average duties from 13 per cent to 4 per cent, in exchange for exemptions from US tariff hikes imposed during the Trump administration. These concessions mirror those offered to the United Kingdom in a recent free trade agreement. India is also seeking preferential market access for its industrial and agricultural products in the US market. Dairy sector remains a sensitive issue The US, whose dairy exports reached $8.22 billion last year, is pushing for greater access to India's dairy market, which is currently protected by high import duties and non-tariff barriers. India's dairy industry, comprising over 80 million small-scale farmers, has expressed concerns over potential market disruptions from increased US imports, according to a Reuters report. Cultural and dietary considerations, such as the vegetarian feed requirement for dairy cattle, further complicate negotiations. Steel and aluminium tariffs: A point of contention Recently, the US doubled safeguard duties on steel and aluminium imports to 50 per cent, affecting Indian exporters. India is considering three options in response: imposing retaliatory tariffs, initiating a dispute at the World Trade Organization (WTO), or continuing bilateral discussions to reach a resolution. The US maintains that these tariffs are national security measures under Section 232, not safeguard actions, a position India disputes. Mission 500: Doubling bilateral trade by 2030 Trade between India and the US reached $129 billion in 2024, with New Delhi recording a trade surplus of $45.7 billion. In February, Prime Minister Narendra Modi and Trump launched 'Mission 500', an initiative aiming to double bilateral trade to $500 billion by 2030. Both nations are working diligently to finalise the first phase of the BTA by July 9, with further negotiations expected to continue through September.