India-US Trade Deal: First Phase Can Be Expected Within Tariff-Pause Period
Commerce Minister Piyush Goyal says 'very good negotiations' with the US are underway.
The first phase of the bilateral trade agreement between India and the US can be out within the tariff-pause period of 90 days, according to government sources.
The terms of reference for the pact have been finalised and further talks are set to take place primarily over video conferencing, though there is a possibility of Indian negotiators visiting the US and vice versa, the officials said on the condition of anonymity.
On the tariff pause itself, the officials said they would continue monitoring India's exports and imports amid the tariff situation. The Central Board of Indirect Taxes and Customs has also been alerted with regards to India being used or Indian exporters using other countries as a conduit for re-routing or other such trade diversionary tactics.
The officials added that India had been a trusted partner to the US and such maneuvers could negatively impact its image. This pause is actually being looked at as a setback since India's lower differential tariff compared to neighbours like China and Vietnam gave it a competitive edge against these manufacturing nations.
Speaking to the media on Friday, Commerce Minister Piyush Goyal stated that "very good negotiations" with the US were underway, and India would be "a compelling case" for the US to enter into a pact.
"Deadlines are good to expedite talks, but there's no head-to-the-gun approach with regards to the BTA (bilateral trade agreement) negotiations... We have to keep national interests at priority," he said.
On Wednesday, the White House exempted 75 non-retaliating countries from its reciprocal tariffs for 90 days. Only a 10% baseline tariff has been enforced on countries, except China.
