India and the U.S. teams have concluded the fifth round of talks for the proposed bilateral trade settlement (BTA) in Washington on July 17, an official mentioned.
The negotiations had been held for 4 days (July 14-17) in Washington. “The Indian team is coming back,” the official mentioned.
India’s chief negotiator and particular secretary within the division of commerce Rajesh Agrawal leads the workforce for negotiations.
These deliberations are necessary as either side are finalising an interim trade deal earlier than August 1, which marks the tip of the suspension interval of the U.S. President Donald Trump tariffs imposed on dozens of nations together with India (26%).
On April 2 this 12 months, Mr. Trump introduced these excessive reciprocal tariffs. The implementation of excessive tariff was instantly suspended for 90 days until July 9 and later until August 1 as America is negotiating trade offers with a quantity of nations.
Issues associated to agriculture and vehicles are learnt to have figured throughout the fifth round of negotiations. Matters associated to methods to cope with non-market economies, and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) additionally got here up for discussions.
India has hardened its place on the U.S. demand for obligation concessions on Agri and dairy merchandise. New Delhi has, thus far, not given any obligation concessions to any of its buying and selling companions in a free trade settlement within the dairy sector. Certain farmers’ associations have urged the federal government to not embody any points associated to agriculture within the trade pact.
India is looking for the elimination of this extra tariff (26%). It can also be looking for the easing of tariffs on metal and aluminium (50%) and the auto (25%) sectors. Against these, India has reserved its proper underneath the WTO (World Trade Organization) norms to impose retaliatory duties.
The nation can also be looking for obligation concessions for labour-intensive sectors, resembling textiles, gems and jewelry, leather-based items, clothes, plastics, chemical substances, shrimp, oil seeds, grapes, and bananas within the proposed trade pact.
On the opposite hand, the U.S. seeks obligation concessions on sure industrial items, vehicles, particularly electrical automobiles, wines, petrochemical merchandise, agricultural items, dairy gadgets, apples, tree nuts, and genetically modified crops.
The two nations wish to conclude talks for the primary tranche of the proposed bilateral trade settlement (BTA) by fall (September-October) this 12 months. Before that, they’re trying for an interim trade pact.
India’s merchandise exports to the U.S. rose 22.8% to $25.51 billion within the April-June quarter this fiscal 12 months, whereas imports rose 11.68% to $12.86 billion.
