India-US trade deal expected to be sealed by December
What's the story
India and the United States are in regular virtual trade talks, Commerce Secretary Rajesh Agarwal said on Friday. He expressed optimism that a final agreement could be reached before the end of this year, as most issues have already been resolved. The statement was made during his address at the FICCI's 98th AGM and annual convention in Delhi.
Political resolution
Remaining issues to be addressed at political level
Agarwal noted that any remaining issues related to the India-US trade deal could be resolved at a political level. He emphasized that there have been significant changes in the global trade landscape since negotiations for the Bilateral Trade Agreement (BTA) began. "Our assumption is trade deal will be beneficial for Indian exports when higher US tariffs are removed," he said, adding India expects some official visits from the US in near future.
Dual negotiations
India negotiating 2 parallel deals with US
Agarwal revealed that India is negotiating two parallel deals with the US: one for a trade deal and another to address reciprocal tariffs imposed by US President Donald Trump. He also acknowledged that the BTA will take time due to changed dynamics of reciprocal tariffs beyond those under MFN (most favored nation) status.
Trade concessions
India seeks duty concessions in labor-intensive sectors
To boost bilateral trade with the US, India is seeking duty concessions for labor-intensive sectors such as textiles, gems and jewelry, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. Meanwhile, the US has sought duty concessions in certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, agricultural items, apples, tree nuts, and genetically modified crops.