A United States delegation is set to visit India on August 25 for the sixth round of negotiations regarding the proposed bilateral trade agreement between the two nations, a government official confirmed on Tuesday, reported the PTI.
Although the US team is scheduled to arrive at the end of next month, both sides are actively engaging in discussions to resolve outstanding issues and potentially finalise an interim trade deal before August 1. The date marks the end of a temporary suspension of additional tariffs imposed under former US President Donald Trump, which included a 26 per cent tariff on select Indian goods.
“The US team is visiting for the sixth round of talks,” the official said, indicating ongoing momentum despite the tight timeline.
While prospects for an immediate breakthrough remain uncertain, US Trade Representative Jamieson Greer recently commented that more rounds of negotiation are required before a trade pact with India can be reached.
“We continue to speak with our Indian counterparts. We`ve always had very constructive discussions with them,” Greer told CNBC on Monday, according to the PTI.
The fifth round of discussions was concluded in Washington last week, with India’s chief negotiator Rajesh Agrawal, Special Secretary in the Department of Commerce, meeting with Brendan Lynch, Assistant US Trade Representative for South and Central Asia.
Both sides are aiming to conclude an interim deal before August 1, even as broader talks toward a more comprehensive agreement are expected to extend into autumn (September-October).
The urgency stems from a April 2 announcement by Trump, which imposed high reciprocal tariffs on a number of countries, including India. Although the implementation was initially delayed for 90 days until July 9, and later extended to August 1, as per the PTI.
India has taken a firm stance, particularly on US demands for greater access to its agriculture and dairy markets. New Delhi has traditionally refrained from offering duty concessions in the dairy sector under any trade agreement. Several Indian farmers’ associations have also urged the government to keep agriculture out of the negotiations entirely.
India, meanwhile, is pushing for the removal of additional tariffs (26 per cent), as well as relief on steel and aluminium (50 per cent) and automotive imports (25 per cent). These have become key sticking points in the trade dialogue, the PTI reported.
In return, the US is seeking duty concessions on industrial goods, automobiles — especially electric vehicles — wines, petrochemical products, agricultural items, dairy goods, apples, tree nuts, and genetically modified crops.
India is also seeking duty relief for several of its labour-intensive export sectors, including textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
India has reserved its right under WTO (World Trade Organisation) norms to impose retaliatory duties if needed, in response to the continuation of US tariffs.
Trade between the two countries remains robust. India’s merchandise exports to the US rose by 22.8 per cent, reaching USD 25.51 billion in the April-June quarter of the current financial year. Imports from the US increased by 11.68 per cent to USD 12.86 billion during the same period.
(with PTI inputs)