India and US Poised to Finalize Mini Trade Deal in 48 Hours
India and the United States are on the verge of completing a mini trade deal, with negotiations taking place in Washington, D.C. Reports indicate that an agreement could be finalized within the next two days, ahead of the lifting of US tariffs on July 9.
The talks are in the final stages, as the Indian negotiating team has extended their stay in Washington to resolve outstanding issues. Both countries are eager to reach a deal soon.
One key point of contention involves the US request for India to open its market to genetically modified crops. This is a major concern for India, as it risks the well-being of its farmers. Meanwhile, the US is also pushing for better access to the Indian agricultural and dairy sectors. However, these sectors may be excluded from the deal due to concerns about rural livelihoods and food safety.
India is asking for lower tariffs on its exports in labor-intensive industries like footwear, garments, and leather, which create many jobs. The Indian government has made it clear that it cannot fully open its dairy market, which is crucial for millions of farmers in the country.
External Affairs Minister S. Jaishankar has expressed hope that the trade talks will end successfully, finding common ground between the two nations. President Donald Trump also feels optimistic about the potential trade agreement, which could lead to lowered tariffs on American goods if India eases its market restrictions.
Trump noted that while India currently has high tariffs, it seems willing to negotiate. “If they do, we’re going to have a deal for much lower tariffs,” he stated, referencing a previous announcement about a 26% reciprocal tariff on India, which is currently on hold pending negotiations.
As the deadline approaches, both sides are focusing on reducing or eliminating these reciprocal tariffs to facilitate smoother trade between the countries. Negotiators are working hard to finalize a Bilateral Trade Agreement (BTA) before the tariffs automatically resume if no agreement is reached.
