India-US Trade Deal: Both Sides Trying To Iron Out Issues, Says MEA
India and the US have been holding negotiations for the trade pact primarily to keep the tariffs below 20%.
Negotiations between India and the US are underway to iron out pending issues for a trade deal, the Ministry of External Affairs said on Thursday.
The comments came a day after US President Donald Trump said that Washington is 'very close' to the trade pact with India.
"These negotiations are on. Both sides are in touch with each other. They are trying to iron out issues," MEA spokesperson Randhir Jaiswal said at his weekly media briefing.
India and the US have been holding negotiations for the trade pact primarily to keep the tariffs below 20%.
"We're very close to a deal with India, where they open it up," Trump said on Wednesday.
The US president said the proposed deal could provide the American companies greater access into the Indian market in line with the trade pact between the US and Indonesia.
Washington has already sent letters to several countries sharing details of reciprocal tariff rates that would come into effect on August 1.
New Delhi hopes it will be able to strike a deal with the US to avoid the reciprocal tariffs.
At the same time, India has indicated that it will not enter into the trade deal in a hurry.
India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest, Commerce Minister Piyush Goyal said earlier this month.
An Indian commerce ministry team is in Washington for another round of talks on the proposed trade agreement.
India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector.
New Delhi is seeking the removal of this additional tariff (26 per cent).
It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25%) sectors.
Trump announced heavy tariffs on a number of countries, including India, on April 2. However, it was soon postponed for 90 days until July 9 and later to August 1.
On India's negotiations with the European Union for the long-pending free trade pact, Jaiswal said talks are 'progressing very well'.
The last round, that is the 12th round, happened in Brussels from July 7th to 11th. And the next round of talks are scheduled to be held in September in New Delhi.
"It (talks) is progressing well. There is good momentum. And that is how, and we would like to see a positive outcome of it," he added.
