The government on Friday said efforts were on to “achieve early conclusion” of an India-US trade deal, much awaited by the industry and exporters. However, a statement issued by the commerce and industry ministry in the wake of the recent visit of an Indian delegation led by commerce minister Piyush Goyal to the US hasn’t spoken of any breakthrough. Some reports said the US side was insistent that India cease import of oil from Russia, for a resolution of the stand-off.
“The (Indian) delegation had constructive meetings with the US government on various aspects of the deal. Both sides exchanged views on possible contours of the deal and it was decided to continue the engagements with a view to achieve early conclusion of a mutually beneficial Trade Agreement,” the the ministry said in a statement.
On Thursday, speaking at the FE Best Bank Awards in Mumbai, Union home minister Amit Shah said the negotiations with the US for a trade deal were at a final stage and that any agreement in this regard would be in the best interest of the country.
High-Level engagements amid tariff disagreements
During his visit to the US between September 22 and 24, Goyal met US Trade Representative Jamieson Greer and the US Ambassador designate to India Sergio Gor.
The talks are on track and both sides are trying to complete discussions by the deadline of autumn or November, an official said, on condition of anonymity. 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%.
It could be a deal similar to what other countries have signed which brought their reciprocal tariffs. The deal will be in tranches and would not be comprehensive at the beginning, the official said. The dates and venue of the next round of discussions will be decided in due course.
Investor Confidence
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 was postponed when oil related tariffs were imposed on India.
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.
Apart from meetings with the US Government representatives on bilateral trade matters, the delegation held discussions with key US based businesses and investors on promoting trade and investment between India and the United States.
“The meetings with businesses and investors evoked positive responses. The business leaders reposed confidence in the India growth story and expressed their desire to intensify their business activities in India,” the statement added.
Goyal and officials held meetings with CEOs of top American multinationals and World Bank CEO Ajay Banga.
The minister met Chairman of Warburg Pincus Chip Kaye, CEO of Carlyle Group Harvey Schwartz, chairman and founder of Blackstone Stephen A Schwarzman, FedEx CEO Raj Subramaniam, IBM CEO Arvind Krishna and CEO of port operator DP World Ahmed Bin Sulayem.