India, US agree on framework for interim trade deal after four days of talks
The negotiations are part of a framework announced by India and the US earlier this year. Both countries agreed to work towards an interim agreement while continuing discussions on a larger Bilateral Trade Agreement (BTA).
India and the United States have moved closer to sealing an interim trade agreement after four days of negotiations in New Delhi. Officials from the Office of the United States Trade Representative (USTR), led by the agency's chief negotiator, held discussions with Indian counterparts from June 1 to June 4. Both sides said productive efforts were continuing to finalise a mutually beneficial trade pact.
In a statement, India's Commerce Ministry said the discussions were held in a spirit of cooperation and pragmatism. The ministry said both countries reaffirmed their commitment to strengthening trade and economic ties through a balanced agreement.
The talks covered several key areas. These included trade in goods, customs procedures, trade facilitation measures, non-tariff barriers, economic security cooperation and other issues of mutual interest.
INDIA-US PURSUE PHASED TRADE AGREEMENT
The negotiations are part of a framework announced by India and the US earlier this year. In a joint statement issued on Thursday, both countries agreed to work towards an interim agreement while continuing discussions on a larger Bilateral Trade Agreement (BTA).
There are growing signs that the first phase of the deal may be close to completion. Last week, US Ambassador to India Sergio Gor said negotiations were in the final stages and that only a small portion of the agreement remained unresolved.
Commerce and Industry Minister Piyush Goyal also recently said that most issues had already been settled. According to him, discussions are now focused on final details before the first tranche of the agreement can be announced.
Progress on the trade pact has gathered pace, but uncertainty remains as the Donald Trump administration is also considering 12.5 per cent additional tariffs on imports from 60 economies, including India.
US TARIFF PROPOSAL ADDS NEW CHALLENGE
The USTR is reviewing a separate proposal that could affect imports from India and several major trading partners. It has completed investigations involving 60 economies and proposed additional tariffs under Section 301 of the US Trade Act of 1974. The proposal is linked to concerns over the import of goods allegedly connected to forced labour.
According to the proposal, economies that have adopted restrictions on such imports could face tariffs of 10 per cent. Countries that have not implemented similar measures could face duties of up to 12.5 per cent.
India, China, Japan, South Korea, the United Kingdom, Bangladesh, Vietnam and several other economies are included in the review.
US Trade Representative Jamieson Greer said countries that fail to address imports linked to forced labour create unfair conditions for American workers.
However, the proposed tariffs are not yet final. Stakeholders have until June 22 to request participation in hearings. Written comments can be submitted until July 6, while hearings are scheduled for July 7. The USTR will review all submissions before making a final decision.
INDIA CONTINUES ENGAGEMENT WITH US
India has remained engaged with the US on the Section 301 proceedings while simultaneously negotiating the trade agreement.
The Commerce Ministry said discussions on the proposed tariffs and the trade pact are moving in parallel. New Delhi is seeking to protect its trade interests while also advancing an economic partnership with Washington.
For both countries, the stakes are high. The US remains one of India's largest trading partners, while India continues to be an important market for American businesses.