Trade negotiations between Indian and US officials have been extended into next week as the two sides aim to reach consensus on tariff reductions in sectors like agriculture and automobiles, government officials said. The discussions, initially slated for June 5–6, are now expected to continue through until June 10, indicating progress ahead of a July 9 deadline.
A US delegation, led by senior officials from the Office of the United States Trade Representative (USTR), met with Indian negotiators headed by Rajesh Agrawal in New Delhi last week. Both sides are said to be focusing on improving market access, reducing tariff and non-tariff barriers, and strengthening supply chain integration.
The current talks are part of a phased effort to finalise a limited trade agreement, with hopes of avoiding the reimposition of 26 per cent reciprocal tariffs on Indian exports which could take off by July 9.
The Indian government officials have shared the “first mover advantage” India has, and are hopeful that the consensus could be achieved soon.
While broadly there is consensus, the US has requesting opening up trade for the agriculture and diary sectors, which could hurt the local farmers in India, while India may also consider pursuing a WTO complaint over American tariffs on steel and aluminium, while continuing bilateral negotiations.
India’s exports to the US rose nearly 28 per cent year-on-year to $37.7 billion in the January–April period, partly due to a surge in shipments ahead of the expected tariff hike. Imports during the same period stood at $14.4 billion.