There is “every possibility” of conclusion of the much-staggered trade talks with the US by the November deadline, and discussions are going on at multiple levels for it, commerce and industry minister Piyush Goyal said on Tuesday.
He, however, added that the next round of “direct talks,” their mode and the location will have to be seen in view of the shutdown of the government in the US. “We will let you know soon what is being planned to take the talks forward,” he told reporters here.
The US government stopped working at midnight on October 1 because the Congress failed to pass a Democrats-backed healthcare funding Bill.
What deadline had been previously set for the deal?
When India and US decided to negotiate their Bilateral Trade Agreement (BTA) in February, they set a deadline of fall to conclude its first tranche by fall of this year.
The US and India had last direct contact on the trade negotiations in late September when Goyal and chief negotiator Rajesh Agarwal with their team of officials visited the US.
During the visit from September 22 to September 24 Goyal met US Trade Representative Jamieson Greer and the US Ambassador designate to India Sergio Gor.
At those meetings India and US discussed the possible contours of their trade deal for an early conclusion. Talks were on various aspects of the deal and views were exchanged on the different possibilities.
In its talks with the US India is insisting on the removal of 25% additional duties imposed on India for buying Russian oil and bringing down the reciprocal tariffs below the current levels of 25%. As in other trade deals where negotiations are on Most Favoured Nation (MFN) tariffs, with the US the talks are mostly on the additional tariffs imposed by US President Donald Trump through executive orders.
India and the US agreed to start negotiations on a Bilateral Trade Agreement (BTA) in February and complete the first tranche of the agreement by the fall of this year. So far five formal rounds of negotiations have taken place between the negotiators from both sides. The sixth round scheduled for August-end was postponed when oil related tariffs were imposed on India.
Who will lead the talks for US?
The talks again came back on track when a team from the US led by its chief negotiator – Assistant USTR Brendan Lynch for the BTA visited India on September 16 for the day-long talks on trade related issues.
Goyal is in Qatar for a meeting of the India-Qatar Ministerial Joint Commission on Economic and Commercial Cooperation which he co-chaired with Minister of Commerce and Industry of Qatar Thani bin Faisal bin Thani.
The two Ministers also jointly addressed the India–Qatar Joint Business Council (JBC) meeting, attended by senior representatives from FICCI, CII, ASSOCHAM, and the Qatar Chamber, along with members of the business community from both countries. Goyal also held a series of high-level business meetings with senior Qatari dignitaries and corporate leaders.