US officials may visit India for trade pact talks

A team of US officials is expected to visit India in the coming weeks for the next round of discussions on the proposed interim trade agreement between the two countries, sources said.

The visit gains importance as India and the US are likely to agree on an interim trade agreement before July 9, with New Delhi pushing for full exemption from the 26 per cent reciprocal tariff on domestic goods.

“The US team is expected in India for trade talks. Negotiations are moving at a faster pace,” one of the sources said.

India’s chief negotiator, Special Secretary in the Department of Commerce Rajesh Agrawal, concluded his four-day visit to Washington last week. He held talks with his US counterpart on the proposed agreement.

Commerce and Industry Minister Piyush Goyal was also in Washington last week to give an impetus to trade talks. He met US Commerce Secretary Howard Lutnick twice during his visit.

The US on April 2 imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days till July 9, later. However, Indian goods still attract the 10 per cent baseline.

The US administration requires approval from the US Congress to bring tariffs below the most favoured nation rates. But it has the authority to remove the reciprocal tariffs imposed on India.