India-US trade talks to resume on June 1 as both sides push to finalise interim pact

Key Takeaways

• Representational image US-India trade talks Section 301 probe Trade negotiations between India and the United States are set to gain momentum, with senior officials from both countries beginning a four-day meeting in New Delhi on Monday to work out the final details of an interim trade agreement.The US delegation will be led by chief negotiator Brendan Lynch, while India will be represented by Darpan Jain, additional secretary in the department of commerce and the country's chief negotiator for the talks.According to the commerce ministry, the discussions are expected to focus on finalising the interim agreement and advancing negotiations under the broader Bilateral Trade Agreement (BTA).
• Areas under discussion include market access, non-tariff measures, customs and trade facilitation, investment promotion, and economic security alignment.Earlier on February 7, India and the US had issued a joint statement, outlining the framework for the first phase of the BTA, also referred to as the interim trade agreement.
• The next step involves finalising the legal text of the proposed deal.
• The framework also reaffirmed both countries' commitment to continuing negotiations on the wider trade agreement.As part of the agreed framework, the US had committed to lowering tariffs on India to 18% from 50%.It had also withdrawn the 25% tariffs imposed on Indian goods linked to purchases of Russian oil and planned to reduce the remaining 25% tariff to 18% under the pact.However, developments in the US tariff regime altered the situation.
• On February 20, the US Supreme Court ruled against President Donald Trump's reciprocal tariffs that had been imposed under the 1977 International Emergency Economic Powers Act (IEEPA).