Hopeful of initial India-US trade deal by July 9: Commerce Secy 

Negotiations for the proposed India-US trade agreement are in good progress and the two sides are expected to agree on an early tranche of the pact before July 9, a top government official said on Monday.

"We are working on the early tranche and as you are aware that there is a date (July 9), before that we would like to conclude this early tranche," Commerce Secretary Sunil Barthwal told reporters here.

He said that Indian and the US teams are making visits to each other's country for trade talks.

"We also visited the US twice. The US team also came here twice. There is good progress and we are hopeful that this will be done within the timelines," he added.

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. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent tariff.

The US team was here from June 5 - 11 for the talks. The negotiations will continue both virtually and physically in the days to come.

When asked if the absence of the US Fast Track Trade Authority (also known as Trade Promotion Authority) could delay the proposed trade pact with India, an official said it was up to the US authorities to decide how to navigate its local regulations for the trade agreement with India.

The official said as India and the US were aiming to more than double the bilateral trade to $500 billion by 2030, this can not happen unless and until tariffs are reduced. "Both the countries are looking for better market access into each other's markets," the official said adding for this "the product mix could be different for both the countries".

India is seeking duty concessions for labour-intensive sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.

The US, in turn, wants duty concessions on certain industrial goods, automobiles - especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops.

"Market access can only come through lowering of tariffs. It should be the endeavour of both the countries to lower the tariffs. To what extent, they have the legal authority to do so, that will depend upon their outlook towards the trade," the official added.

Another official said that how the US would reduce tariff under the pact, is "something which they will have to figure out and TPA was one of the mechanisms".

The next date of in-person negotiations on the BTA and its initial tranche is yet to be decided but both sides are engaging virtually without a break.-- PTI