New Delhi: An Indian commerce ministry team will soon visit Washington for another round of talks on the proposed trade agreement with the US to iron out differences in sectors, like agriculture and automobiles, a government official said Thursday.
“We are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue,” the official said.
The dates for the US visit have not been finalised yet. However, according to sources, the team is expected to visit Washington next week.
“We are engaged both physically and virtually with the US on the pact,” the official, who did not wish to be named, said.
On the timeline of the proposed interim deal, the official said: “One does not know”.
Earlier this month, an Indian team led by chief negotiator Rajesh Agrawal returned from Washington after holding talks on the pact between June 26 and July 2.
Agrawal is the special secretary in the Department of Commerce.
India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector.
This visit is significant as the US has further extended the imposition of additional import duties (in the case of India, it is 26 per cent) till August 1. India is seeking the removal of this additional tariff.
India is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors. Against these, India has reserved its right under the WTO (World Trade Organisation) norms to impose retaliatory duties.
Last week, Commerce and Industry Minister Piyush Goyal said India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest.
FTAs are possible only when both sides benefit, and it should be a win-win agreement, he has said when asked about the proposed interim trade agreement with the US.
US President Donald Trump announced heavy tariffs on a number of countries, including India, April 2. However, it was soon postponed for 90 days until July 9 and later to August 1.
July 7, the Trump administration started issuing tariff letters to its trading partners. In two tranches, as many as 21 countries have received these letters. It includes Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Laos, Serbia and Tunisia.
Wednesday, Libya, Iraq, Algeria (30 per cent), Moldova, Brunei (25 per cent), and the Philippines (20 per cent) have also received these letters. These heavy levies will come into effect from August 1.
Trump has also announced 50 per cent import taxes on Brazil as he has threatened to impose an additional 10 per cent tariff on countries aligning themselves with the “anti-American” policies of the BRICS grouping.
He has claimed that BRICS was established to “hurt” the US and “degenerate” the dollar.
Leaders of the BRICS nations, Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran, met in Brazil for the 17th BRICS Summit July 6-7.
The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, like dairy items, apples, tree nuts, and genetically modified crops.
On the other hand, India is seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.
The two countries are also looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. The pact is aimed at more than doubling bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.
Before the first tranche, the efforts are on for an interim trade pact.
India’s merchandise exports to the US rose by 21.78 per cent to USD 17.25 billion in April-May this fiscal, while imports rose by 25.8 per cent to USD 8.87 billion.
PTI
