India, US Nearing Trade Deal; Both Sides See Eye To Eye On Most Issues: Sources
The Indian and US negotiators are converging on most issues, and the negotiations are progressing positively, the sources said.
India and the United States are close to striking a trade deal, with both the sides seeing eye to eye on most issues, persons privy to the development told NDTV Profit on Friday.
The Indian and US negotiators are converging on most issues, and the negotiations are progressing positively, the sources said.
Virtual rounds of talks are continuing for now, centred on the technical and legal aspects of the bilateral trade pact.
As of now, no major gaps on issues are being seen, the persons noted, while adding that discussion on non-tariff barriers are also proceeding.
Both sides are hopeful of delivering the first tranche of the trade deal by the deadline of fall, which is the period around November, the sources noted.
Presently, India faces 50% tariffs on exports to the US. The levies are at par with Brazil, and the highest among America's Asian trading partners.
The tariffs came into effect in August, despite the two sides being locked in trade negotiations since earlier this year. Since reciprocal tariffs are involved, this will be a different type of trade pact, the sources said.
India is also hopeful that tariffs imposed under Section 232 of the US Trade Expansion Act will be addressed under the trade deal. Under this legal provision, Washington has imposed separate levies on a range of imports, including automobile, auto parts, steel, and aluminium.
Even as officials indicate that the trade deal is round the corner, the next schedule of in-person talks between the negotiators is yet to be announced. The dates have not been confirmed, but the US team may visit soon, the sources said.
The speculations over an early closure to the India-US trade deal talks received a boost this week, as US President Donald Trump on Wednesday said he held telephonic conversation with Prime Minister Narendra Modi over the same.
"Just spoke to Modi today on trade. We're working on some great deal with India," he said on Wednesday, adding that "India is doing very well."
Trump also said New Delhi "won't be buying too much oil from Russia", suggesting that India is likely to scale back its Russian crude imports as part of the broader understanding being worked out.
