India and the United States are set to engage in ministerial-level trade discussions this week to finalize the framework for their proposed bilateral trade agreement. The talks come ahead of a significant tariff deadline next month. US Trade Representative Jamieson Greer is expected to visit Delhi for a two-day session with Union Minister of Commerce and Industry Piyush Goyal.
Goyal mentioned that his American counterpart would be in Delhi for the trade deal talks. The focus of the discussions is likely to be on refining the framework agreement and advancing negotiations on the broader bilateral trade pact. Both countries have been working towards resolving outstanding issues in the interim trade agreement.
The impending talks are crucial as the temporary 10% tariff imposed by the US on all trading partners is due to expire on July 24. This tariff, introduced in February, is in addition to the Most Favoured Nation duty rates. After the 150-day period, the US is expected to introduce a revised tariff structure.
The recent negotiations follow earlier discussions at the chief negotiator level held in Delhi from June 2 to June 4. These talks aimed to push forward negotiations on the proposed pact. The ongoing discussions occur amidst investigations by the Office of the US Trade Representative against various countries, including India, regarding issues such as excess industrial capacity and labor practices in global supply chains.
In June, the US Trade Representative proposed additional tariffs on imports from several countries, including India, citing concerns about forced labor in supply chains. The proposal is currently in the consultation phase and has not been finalized. The upcoming ministerial talks are anticipated to inject fresh impetus into trade negotiations and bring both sides closer to finalizing the initial phase of the agreement.
