India and the US on Tuesday resolved to intensify efforts to reach an early conclusion of a Bilateral Trade Agreement (BTA).
This was the outcome of the discussions between a team of US officials led by chief negotiator Brenden Lynch and Indian officials here on Tuesday. Both sides agreed to get the trade negotiations back on track after the 6th round of talks scheduled to start on August 25 was postponed.
While the date of formal negotiations to begin will be finalised after mutual consultations, it was decided to continue the talks in a virtual mode.
“Acknowledging the enduring importance of bilateral trade between India and the US, the discussions were positive and forward-looking covering various aspects of the trade deal,” a commerce ministry statement said. Special secretary Rajesh Agrawal led the Indian team in the talks.
Lynch is the Assistant US Trade Representative for South and Central Asia. The Indian side in the one-day talks was led by special secretary and chief negotiator for the BTA, Rajesh Agrawal.
The first tranche of the BTA has a deadline of fall or November of this year.
Tariff and market access issues slow progress
The postponement of August talks followed the decision of US President Donald Trump to impose 25% additional penal tariffs for buying Russian crude oil. These duties came over and above the 25% reciprocal tariffs. This made India the highest tariffed country by the US besides Brazil and has the ability to price out 55% of India’s exports to the US.
Apart from oil purchases from Russia, the differences on opening up of the farm and dairy sector by India was the other major issue that led to the slowdown of negotiations.
Targeting $500 billion trade by 2030
India is the first country with which the US started negotiations on a trade deal after Trump expressed his intentions to heavily tax imports into America. The decisions on the first tranche of the BTA was announced in February and by the March-end the Terms of Reference of the agreement were finalised.
Till then four more rounds of talks were held. While announcing the BTA the target to get the bilateral trade to $500 billion by 2030 from $ 191 billion at present was set.
Apart from oil purchases from Russia, the differences on opening up of the farm and dairy sector by India was the other major issue that led to the slowdown of negotiations.