India, US likely to sign trade pact within 90-day tariff-pause period

NEW DELHI:

The first phase of the bilateral trade agreement between India and the US is likely to be concluded within the tariff-pause period of 90 days fixed by the Donald Trump administration, according to official sources.

 

The terms of reference for the agreement have been finalised and further negotiations are scheduled to take place primarily through video conferencing, although if required, Indian negotiators may visit Washington or US officials can come to Delhi, senior officials said.

 

At the same time, a close watch is being kept to ensure that other countries do not route their exports through India to circumvent the higher tariffs imposed on them. Similarly, the Central Board of Indirect Taxes and Customs (CBIC) has also been alerted to ensure that Indian exporters do not use other countries as a conduit for re-routing.

 

The officials said that India has been a trusted partner to the US, and such manoeuvres could negatively impact its image.

 

Meanwhile, Commerce Minister Piyush Goyal told journalists on Friday that "very good negotiations" with the US were underway.

 

He said that India presents a compelling case to the United States for a bilateral trade deal, given the outlook on growth and demography.

 

"Looking at the growth, India offers in the next 25-30 years with a large, aspirational, young population who will add to the demand for goods and services, we believe India will be a compelling case to enter into a good agreement with the US," Goyal said while addressing a joint conference with Italy's Deputy Prime Minister Antonio Tajani.

 

"Deadlines are good to expedite talks, but there's no head-to-the-gun approach with regards to the BTA (bilateral trade agreement) negotiations. We have to keep national interests at a priority," the minister said.

 

India and the US are discussing the contours of a bilateral trade agreement (BTA), which is part of a new goal - "Mission 500" - aiming to more than double trade between the two countries to $500 billion by 2030.

 

On Wednesday, the US exempted 75 non-retaliating countries from its reciprocal tariffs for 90 days. Meanwhile, only a 10 per cent baseline tariff has been enforced on countries, except China.

 


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