Indian and US Officials Initiate Bilateral Trade Agreement Talks Today in Washington
- MGMMTeam
- 5 hours ago
- 2 min read
Indian and US officials will begin discussions on the proposed bilateral trade agreement in Washington starting Wednesday, aiming to resolve issues and accelerate the negotiations.
The US has emphasized that the pact with India will open new markets for American goods and create fresh opportunities for workers, farmers, and entrepreneurs in both countries.
According to the US Trade Representative, the United States seeks to enhance market access, reduce tariffs and non-tariff barriers, and negotiate a comprehensive set of additional commitments to ensure long-term benefits.
The US has repeatedly raised concerns about its growing trade deficit with India, which reached USD 45.7 billion in 2024. It aims to address this imbalance through the BTA.
The two countries have finalized the terms of reference (ToR) for the agreement.
The three-day talks are significant, as the US has paused tariff imposition for 90 days.
The ToRs cover about 19 chapters, including tariffs, non-tariff barriers, and customs facilitation.
An official stated that these discussions would pave the way for the formal launch of BTA negotiations.
India’s chief negotiator, Additional Secretary in the Department of Commerce Rajesh Agrawal, is leading the team in the first in-person talks between the two nations.
On April 15, Commerce Secretary Sunil Barthwal mentioned that India would aim to conclude the negotiations as quickly as possible with the US.
India and the US have been negotiating the bilateral trade agreement since March, with both sides targeting to complete the first phase by the fall (September-October) of this year, with a goal to more than double bilateral trade to USD 500 billion by 2030, up from around USD 191 billion currently.
A trade pact between two countries typically involves reducing or eliminating customs duties on most traded goods and easing regulations to promote trade in services and encourage investments.
The US is seeking duty concessions in sectors such as certain industrial goods, electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and alfalfa hay. India, in turn, may seek duty cuts for labor-intensive sectors including apparel, textiles, gems and jewelry, leather, plastics, chemicals, oilseeds, shrimp, and horticulture products.
From 2021-22 to 2024-25, the US has been India’s largest trading partner.
In the last fiscal year, India’s exports to the US rose by 11.6% to USD 86.51 billion, compared to USD 77.52 billion in 2023-24. Imports from the US increased by 7.44% in 2024-25 to USD 45.33 billion, up from USD 42.2 billion in 2023-24.
India had a trade surplus with the US of USD 41.18 billion in goods for 2024-25.
The US accounted for nearly 19.78% of India’s total exports and 6.29% of total imports.
תגובות