New Delhi – India’s Commerce Secretary Rajesh Agrawal announced Friday that bilateral trade negotiations with the United States are progressing well. His remarks follow a recent visit by a US delegation to India for discussions on customs and trade facilitation, signaling continued engagement between the two economic powers.
Key Progress in Bilateral Discussions
“India-US trade talks are on the right track,” Agrawal told reporters, noting significant convergence across many areas during the US team’s early November visit. He added that the chief negotiators for the trade deal have also maintained virtual engagement to advance discussions.
The ongoing negotiations encompass 16 distinct policy areas, crucial for shaping the future of India-US commerce. These include vital aspects such as market access for goods and services, rules of origin and origin procedures, and trade remedies, among other complex issues.
Awaiting Clarity on Tariffs and Future Steps
While the US has reportedly assured India of a comparative advantage on tariffs compared to other nations, India is awaiting further clarity. Specifically, the outcome of the US Trade Representative’s Section 301 investigations into excess capacity remains a key point of interest, as it could potentially lead to additional tariffs on Indian goods.
Officials anticipate a successful conclusion to the initial phases of the bilateral trade agreement. Another round of talks between the two countries is tentatively planned for December, aiming to build on the momentum generated by recent engagements and finalize key chapters of the agreement.
Broader Trade Landscape
Beyond the US, India is also actively engaged in other significant trade negotiations. Steady progress is being made on a Free Trade Agreement (FTA) with Canada, with the sixth round of talks currently underway in New Delhi, targeting a year-end conclusion. Similarly, negotiations for an FTA with the European Union are also reportedly on track, with an official announcement expected during Prime Minister Modi’s visit to Brussels next month.