What’s Next for India-US Trade Talks? Insights from Recent Negotiations

Ongoing Trade Negotiations Between India and the US

New Delhi: The Ministry of External Affairs (MEA) announced on Thursday that discussions are actively taking place between India and the United States to resolve outstanding issues related to a trade agreement.

This statement follows US President Donald Trump's remarks indicating that the two nations are 'very close' to finalizing the trade pact.

MEA spokesperson Randhir Jaiswal confirmed during a media briefing that both countries are in continuous communication to address the remaining concerns.

The primary goal of these negotiations is to maintain tariffs below 20 percent.

Trump mentioned on Wednesday, 'We’re very close to a deal with India, where they open it up,' suggesting that the agreement could enhance American companies' access to the Indian market, similar to the existing trade deal with Indonesia.

The US has already communicated with several nations regarding reciprocal tariff rates set to take effect on August 1.

India is optimistic about reaching an agreement with the US to circumvent these reciprocal tariffs.

However, India has made it clear that it will not rush into a trade deal.

Commerce Minister Piyush Goyal emphasized earlier this month that India will only agree to the trade pact once it is thoroughly finalized, beneficial, and in the national interest.

A team from India's commerce ministry is currently in Washington for further discussions on the proposed agreement.

India has taken a firm stance against US requests for duty reductions on agricultural and dairy products, having not granted any concessions to its trading partners in the dairy sector under free trade agreements.

New Delhi is advocating for the elimination of an additional 26 percent tariff and is also pushing for reduced tariffs on steel and aluminum (50 percent) and automobiles (25 percent).

Trump had previously announced significant tariffs on various countries, including India, on April 2, but these were postponed for 90 days, first to July 9 and then to August 1.

Regarding India's ongoing negotiations with the European Union for a long-awaited free trade agreement, Jaiswal noted that discussions are 'progressing very well.'

He added that the 12th round of talks took place in Brussels from July 7 to 11, with the next round scheduled for September in New Delhi.

'The talks are moving forward positively, and we hope for a favorable outcome,' he concluded.