US delegation may postpone India visit for bilateral trade talks
What's the story
A US delegation, due to visit India from August 25 for the sixth round of talks on the proposed bilateral trade agreement (BTA), is likely to defer its trip, PTI reports. The postponement comes as the US has imposed a 25% duty on Indian goods, with an additional 25% duty set to take effect soon, totaling a 50% increase. The rescheduling of this meeting is significant given the current trade tensions between the two countries.
Trade negotiations
India's stance on agricultural and dairy issues
The US is demanding greater market access in politically sensitive areas like agriculture and dairy. However, India has refused to budge on these issues as they directly affect the livelihood of small and marginal farmers. An official emphasized India's firm stance in these negotiations, stating that the country will not compromise the interests of farmers and cattle rearers.
Trade targets
Ambitious targets set for bilateral trade
Despite the current challenges, the US and India have set an ambitious target to complete the first phase of their BTA by fall 2025 (September-October). They also plan to more than double bilateral trade from $191 billion to a whopping $500 billion by 2030. This ambitious goal underscores the commitment of both countries to strengthening their economic ties, despite existing trade barriers.
Tariff impact
US tariffs on Indian goods
The US has already imposed a 25% tariff on Indian goods entering its market from August 7. An additional 25% tariff, as a penalty for India's purchase of crude oil and military equipment from Russia, will come into effect from August 27. These tariffs are likely to have a significant impact on the trade dynamics between the two countries.