The Crossbill News Desk
Talks between India and the United States on finalising an early bilateral trade agreement remain inconclusive, with differences over tariff cuts on agricultural products emerging as a key sticking point, according to a report by The Hindu Businessline.
Citing sources familiar with the negotiations, the report said that while some progress has been made, disagreements persist regarding US demands for lower tariffs on farm imports and India's need to safeguard domestic agricultural interests.
Parallelly, Reuters also reported progress in the latest round of negotiations held in New Delhi on Tuesday. Talks centred on industrial and agricultural goods, tariff reductions, and the easing of non-tariff barriers.
The US delegation, led by senior officials from the Office of the US Trade Representative, visited India between June 4 and 10. India’s team was headed by the trade ministry’s chief negotiator, Rajesh Agrawal. The discussions are expected to continue.
An official told news agency PTI that during the visit, both sides engaged in “in-depth negotiations.”
“During the visit, in-depth negotiations were held on various elements of the proposed BTA that among others included areas such as market access, SPS (sanitary and phyto-sanitary/TBT (technical barriers to trade), digital trade, customs and trade facilitation and legal framework,” the official said.
The US has shown particular interest in digital trade, with American service providers raising concerns over data localisation norms and India’s competition policy, which they argue limit their operations.
According to Businessline, India is willing to reduce tariffs on several US products, potentially including automobiles, alcoholic beverages, specific fruits and nuts, and certain chemicals. However, New Delhi remains firm on keeping protections in place for staple items such as rice and wheat.
A deadline looms over the trade talks, as India risks facing a 26% reciprocal tariff imposed by former US President Donald Trump unless an agreement is reached by July 9.
Earlier this year, Prime Minister Narendra Modi and President Trump had agreed to conclude a bilateral trade deal by fall 2025.
Citing sources familiar with the negotiations, the report said that while some progress has been made, disagreements persist regarding US demands for lower tariffs on farm imports and India's need to safeguard domestic agricultural interests.
Parallelly, Reuters also reported progress in the latest round of negotiations held in New Delhi on Tuesday. Talks centred on industrial and agricultural goods, tariff reductions, and the easing of non-tariff barriers.
The US delegation, led by senior officials from the Office of the US Trade Representative, visited India between June 4 and 10. India’s team was headed by the trade ministry’s chief negotiator, Rajesh Agrawal. The discussions are expected to continue.
An official told news agency PTI that during the visit, both sides engaged in “in-depth negotiations.”
“During the visit, in-depth negotiations were held on various elements of the proposed BTA that among others included areas such as market access, SPS (sanitary and phyto-sanitary/TBT (technical barriers to trade), digital trade, customs and trade facilitation and legal framework,” the official said.
The US has shown particular interest in digital trade, with American service providers raising concerns over data localisation norms and India’s competition policy, which they argue limit their operations.
According to Businessline, India is willing to reduce tariffs on several US products, potentially including automobiles, alcoholic beverages, specific fruits and nuts, and certain chemicals. However, New Delhi remains firm on keeping protections in place for staple items such as rice and wheat.
A deadline looms over the trade talks, as India risks facing a 26% reciprocal tariff imposed by former US President Donald Trump unless an agreement is reached by July 9.
Earlier this year, Prime Minister Narendra Modi and President Trump had agreed to conclude a bilateral trade deal by fall 2025.
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