With the Trump administration's deadline for imposing higher import tariffs on its trading partners pushed back to August 1, Indian trade negotiators are expected to return to the US to iron out differences and reach an agreement, according to government sources.
Due to disparities in tariff rates on dairy, cars, and agriculture, India was unable to sign an interim trade agreement with the US before the previous deadline of July 9. After the previous team, headed by Rajesh Agrawal, special secretary, Department of Commerce, returned without reaching an agreement, the government made the decision to send the trade negotiators once more.
Key Highlights
- Indian trade delegation will soon visit Washington again to resume bilateral trade negotiations amid looming tariffs.
- Talks aim to resolve contentious auto, steel, and agricultural tariffs, targeting first-phase deal by fall.
The team's next visit to the United States has yet to be scheduled, but it could take place next week. According to sources, the Indian government is attempting to negotiate a "complete deal" and is making no distinction between an interim deal and the first phase of the Bilateral Trade Agreement. "Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue," according to a spokesperson.
While US President Donald Trump has claimed that a deal with India will be signed soon, finance ministry sources say talks have so far stalled. According to officials, the Indian government is opposed to any tariff reductions on agricultural and dairy products. Automobile tariffs are said to be one of the most contentious issues. India appeared to relent on agriculture tariffs at first, but following pressure from the Swadeshi Jagran Manch, the government appears to have hardened its stance.
Also Read: Trump's BRICS Statement Adds Fresh Tension to India-US Trade Deal
No deal is better than a bad deal
According to government sources, having no deal is preferable to having a bad one. For the record, Commerce Minister Piyush Goyal has stated that India is not in a hurry to sign a deal with the US unless it is mutually beneficial for both countries.
Rejecting the deal will not hurt India
India may refuse to sign a trade agreement or accept reciprocal tariffs from the United States. "The United States is also imposing higher tariffs on other countries." So our export competitiveness may not suffer at all," the sources reasoned.
