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News India Live, Digital Desk: Trade Agreement: Commerce and Industry Minister Piyush Goyal on Tuesday discussed with US Commerce Minister Howard Lutenik in Washington to expedite the conversation on the first phase of the proposed bilateral trade agreement between the two countries. Goyal is in Washington for a ministerial meeting to review the progress of the trade agreement.
Goyal said in a post on X, “There was a good discussion with Secretary Howard Lutnik to accelerate the first phase of the Indo-US bilateral trade agreement.” Goyal was also in Washington in March for trade talks.
After the ministerial meeting, there will be discussions between the chief negotiaters of the two countries, which will continue till 22 May.
These meetings are taking place at a time when the two countries are exploring the possibility of interim trade system in goods to ensure “early mutual benefits” before finalizing the first phase of the trade agreement by autumn (September-October) this year.
The main issues that will be considered in the talks include market access, rules of origin and non-tariff barriers.
Officials of New Delhi and Washington aim to avail the 90-day tariff break period to carry forward the talks. The US has postponed an additional 26 percent tariff on India till 9 July. It was announced on 2 April to bridge the rising trade deficit.
However, the basic tariff of 10 percent imposed on these countries will be applicable.
In order to promote bilateral trade, India is demanding a fee concession for labor, gems and jewelery, leather items, apparel, plastic, chemicals, shrimp, oilseeds, chemicals, grapes and bananas in the proposed agreement with the US.
On the other hand, the US wants fee concession in areas such as some industrial items, automobiles (especially electric vehicles), wine, petrochemical products, dairy, agricultural products such as apples and trees.
The terms of reference (TOR) for BTA by India and the US have been finalized, including about 19 chapters, including issues such as tariffs, goods, services, rules of generation, non-tariff barriers and customs facilities.
The US has expressed concern over some non-tariff obstacles faced by American goods in Indian markets on many occasions.
The US will remain India’s largest trading partner in the fourth consecutive year 2024-25, which will be US $ 131.84 billion. America accounts for about 18 percent of India’s total goods exports, 6.22 percent in imports and 10.73 percent in the country’s total goods trade.
India’s trade surplus (difference between import and export) in terms of goods in 2024–25 with the US was US $ 41.18 billion. It was US $ 35.32 billion in 2023-24, US $ 27.7 billion in 2022-23, US $ 32.85 billion in 2021-22 and US $ 22.73 billion in 2020-21. The US has expressed concern over this growing trade deficit.
India’s ban on import of clothes and beverages from Bangladesh