Trade Agreement Between India and the US Expected Within 90-Day Tariff Pause
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Synopsis
The trade agreement between India and the US is expected to be concluded within the 90-day tariff pause set by the Trump administration. Officials are optimistic about negotiations, emphasizing India's strong case for a bilateral trade deal as part of the Mission 500 initiative.
Key Takeaways
- The bilateral trade agreement is likely to be finalized within 90 days.
- Negotiations are primarily conducted via video conferencing.
- India is vigilant against rerouting of exports through its territory.
- Commerce Minister Goyal emphasizes India's growth potential.
- The goal is to double US-India trade to $500 billion by 2030.
New Delhi, April 11 (NationPress) The initial phase of the trade agreement between India and the US is anticipated to be finalized during the 90-day tariff pause established by the Donald Trump administration, as per official reports.
The agreement's terms of reference have been set, and further discussions are scheduled mainly via video conferencing. However, if necessary, Indian negotiators might travel to Washington, or US officials may visit Delhi, according to senior officials.
Additionally, there is vigilance to prevent other nations from using India as a route for their exports to bypass the higher tariffs imposed on them. The Central Board of Indirect Taxes and Customs (CBIC) has also been notified to ensure that Indian exporters do not utilize other countries as conduits for rerouting.
Officials stated that India has been a reliable partner to the US, and such actions could adversely affect its reputation.
Meanwhile, Commerce Minister Piyush Goyal informed the media on Friday that "very productive negotiations" with the US are currently in progress.
He emphasized that India presents a strong case to the United States for a bilateral trade deal, considering the nation's growth potential and demographic advantages.
"With the growth that India is poised to experience over the next 25-30 years, thanks to a large, aspirational, young population that will increase the demand for goods and services, we believe India is a compelling candidate for a robust agreement with the US," Goyal stated during a joint conference with Italy's Deputy Prime Minister Antonio Tajani.
"While deadlines can facilitate discussions, there is no rush regarding the BTA (bilateral trade agreement) negotiations. We must prioritize national interests," the minister added.
India and the US are exploring the framework of a bilateral trade agreement (BTA) as part of a new initiative - "Mission 500" - aimed at more than doubling trade between the two nations to $500 billion by 2030.
This past Wednesday, the US exempted 75 non-retaliating countries from its reciprocal tariffs for 90 days. Meanwhile, only a 10% baseline tariff has been imposed on countries, excluding China.
