India eyes interim trade deal with US by July 31
What's the story
The Indian government is considering an interim trade deal with the United States ahead of the August 1 deadline, as per CNBC-TV18. The discussions are part of a larger bilateral trade agreement (BTA) that is currently being negotiated. Last week, teams from both nations concluded the fifth round of talks in Washington.
Negotiation
Discussions mainly revolved around agriculture, automobiles
The latest round of talks was led by India's chief negotiator Rajesh Agrawal and Brendan Lynch, Assistant US Trade Representative for South and Central Asia. The discussions mainly revolved around automobiles, agriculture, non-market economies, and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies). Both nations hope to finalize the first phase of this proposed BTA by October.
Tariff concerns
Trump had announced reciprocal duties on several trading partners
The Donald Trump administration had announced reciprocal duties on many trading partners in April, but the implementation has been delayed to August 1 as talks continue. While India is not on the initial list of countries facing new US tariffs, officials are unsure if Washington shall extend the deadline if an interim deal isn't reached in time.
Demands
What both countries are seeking
India is pushing for the removal of additional 26% duties and reduction of levies on steel, aluminum, and autos. On the other hand, the US is eyeing tariff concessions on industrial goods, electric vehicles, wines, petrochemicals, as well as agricultural goods such as dairy products, apples, tree nuts, and genetically modified crops.