US-India trade deal likely before July 8 deadline
What's the story
India and the United States are reportedly close to finalizing a bilateral trade deal before the July 8 deadline. The announcement comes as the deadline for US President Donald Trump's reciprocal tariffs on countries worldwide approaches on July 9. Trump has indicated he won't extend a 90-day reprieve on tariffs for most nations past this date.
Negotiation hurdles
US wants greater market access to dairy, agricultural products
The trade negotiations between India and the US have been complicated by Washington's demand for greater market access to dairy and agricultural products. Trump wants India to allow American genetically modified (GM) crops, apples, and nuts. However, India is reluctant due to fears of GM food crops entering its markets and cultural acceptability issues with American dairy products.
Market protection
India has been firm on protecting its agricultural interests
India has been firm on protecting its agricultural interests, especially rice, fruits, millets, and wheat. The country's trade team has even extended its stay in Washington to resolve differences before the deadline. Last week, Trump hinted at a "very big" agreement with India during a recent White House event, but negotiations have stalled over agriculture and dairy issues.
Tariff negotiations
India seeking assurance on removal of all US tariffs
Besides, India is also seeking assurance that all US tariffs would be removed once a deal is reached. This includes the 50% duty on steel and the 25% duty on automobile parts. Analysts have suggested that a "mini deal" could be reached, similar to the US-UK trade deal that was announced in May. Such an agreement could focus solely on tariffs and leave other issues like services trade and digital regulations for future negotiations.