Goyal, Greer review interim trade agreement as India-US race against tariff deadline
India and the United States reviewed the progress on an interim bilateral trade agreement during the two-day ministerial meeting that concluded in New Delhi on
India and the United States reviewed the progress on an interim bilateral trade agreement during the two-day ministerial meeting that concluded in New Delhi on 24 June. The two sides discussed trade ageeement elements, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors, the government said in a statement without any indication that all differences were resolved ahead of a key tariff deadline next month. Quick answers to key questions • 5 QUESTIONS 1 What topics were discussed in the recent India-US trade agreement talks? ⌵ The discussions covered enhanced market access, digital trade, supply chain resilience, and reduction of non-tariff barriers, among other key elements of the interim trade agreement. 2 Why is there urgency in finalizing the India-US trade agreement before July 24? ⌵ The urgency stems from the impending expiration of a temporary 10 percent US tariff regime on July 24, which has added pressure to conclude the trade negotiations. 3 How have the changes in US tariff policy affected the India-US trade deal? ⌵ Changes in US tariff policy have prompted both nations to revisit key elements of their trade framework, which initially aimed to reduce tariffs on Indian goods but became less favorable due to legal rulings. 4 What commitments are both countries making regarding the trade agreement? ⌵ Both India and the US are committing to a trade agreement that is balanced and commercially meaningful, aiming to deliver tangible benefits for businesses, farmers, workers, and consumers in both nations. 5 Should Indian exporters be concerned about the high tariffs set by the US? ⌵ Yes, Indian exporters should be concerned as the high tariffs, previously anticipated to decrease under the trade agreement, pose challenges in maintaining their competitiveness in the US market. Commerce and Industry Minister Piyush Goyal and visiting US Trade Representative Jamieson Greer held discussions on the first phase of a proposed bilateral trade agreement (BTA), which both sides have been negotiating since reaching a framework understanding earlier this year.
"The two ministers conducted a "comprehensive review" of key elements of the proposed pact, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers and cooperation in strategic sectors," the Commerce Ministry said in a statement at the conclusion of talks on Wednesday. The ministry said both countries discussed pathways to conclude an interim agreement and reaffirmed their commitment to a deal that is "balanced and commercially meaningful". Greer's June 22-24 visit comes at a time when New Delhi and Washington race to finalise an interim arrangement before the expiration of a temporary 10 per cent US tariff regime on July 24, a deadline that has added urgency to negotiations. While the statement said 'substantial' progress has been made, the two sides did not say if outstanding issues had been resolved. "Discussions focused on pathways to conclude an interim agreement as an important milestone toward a comprehensive BTA," the ministry said, adding that the two ministers reaffirmed their commitment to a trade agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries. "Recognizing the growing significance of the India-US economic partnership amid evolving global trade dynamics, both sides reiterated their shared goal of expanding bilateral trade, fostering innovation, and building resilient, trusted supply chains," it added. ‘Very close’ to concluding a historic bilateral trade deal: US Official The United States and India are ‘very, very close’ to concluding a historic bilateral trade deal that will open the 1.4 billion-strong Indian market to American goods on reciprocal and mutually beneficial terms, a senior US official was quoted as saying by news agency PTI. Addressing an event at the Capitol Hill organised by the Foundation for India and Indian Diaspora Studies (FIIDS) on Tuesday, US Deputy Assistant Secretary of State Bethany Poulos Morrison said Prime Minister Narendra Modi and US President Donald Trump were advancing a ‘result-oriented’ relationship.
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