Agreement on a trade deal between India and the US appears to be emerging. Discussions are underway in Washington, and sources suggest the deal could be finalized within 48 hours.
India US Trade: The situation regarding the long-pending interim trade agreement between India and the United States seems to be clarifying. High-level talks are ongoing between the two countries in Washington, and there's a possibility that this deal will be finalized within the next 48 hours. Teams from both countries are working rapidly on this agreement.
Negotiations Continue in Washington
The Indian trade delegation is currently in Washington, engaging in continuous discussions with US officials. According to sources, disagreements persist on some key issues, and efforts are being made to reach a consensus. If everything goes according to plan, the deal will be completed before the implementation of tariffs proposed by the US President.
July 9th Deadline is Crucial
There's a sense of urgency surrounding the trade deal because US President Donald Trump has already indicated that he might increase tariffs on several products coming from India to the US after July 9th if a trade agreement isn't reached. Considering this, both India and the US are keen to finalize the deal before the deadline.
The Matter is Stalled on Agriculture and Dairy Sectors
The biggest point of contention is related to the Indian agriculture and dairy sectors. The US wants India to allow greater market access for American products in these sectors. However, India has maintained a firm stance on this demand so far. New Delhi believes this could negatively impact Indian farmers and rural livelihoods.
According to sources, India has made it clear to the US that it will not lower its domestic tariffs on genetically modified or hybrid crops like maize, soybean, rice, and wheat. This could pose a threat to India's food security and rural infrastructure.
India's Stance is Clear
Senior Indian trade officials have clarified that no agreement is possible in certain areas. India's focus is on a balanced and mutually beneficial agreement that is acceptable to both countries. India also wants to ensure that there is no compromise on the country's agricultural policy, the interests of farmers, and food security.
Trump's Tariff Strategy
It is worth noting that US President Trump, in April of this year, announced 'Liberation Day' and mentioned imposing reciprocal tariffs on several countries. He had threatened to impose tariffs of up to 26 percent on products coming from India and several other countries. However, he later showed partial leniency on this and limited the tariffs to 10 percent.
Opportunity for American Companies
The Trump administration believes that this deal will help American companies expand their business in India. Trump had said that this agreement would reduce tariffs and give American companies the opportunity to compete in India's market of 1.4 billion people.
