India and US Closing in on Trade Agreement Amid Tariff Negotiations
India and the US are making significant progress in formalizing a trade agreement, aiming to complete an initial tranche of the pact by July 9. Concurrent negotiations on other trade deals with the EU and UK are also underway. The US recently imposed and suspended tariffs on Indian goods, impacting discussions.
- Country:
- India
India and the United States are on the brink of formalizing a trade agreement, with expectations to finalize an early tranche before July 9. According to Commerce Secretary Sunil Barthwal, discussions are advancing smoothly, facilitated by reciprocal visits from both countries' delegations.
The US had imposed an additional 26% tariff on Indian goods on April 2, which is currently suspended for 90 days, ending on July 9. Despite this suspension, a 10% baseline tariff remains. India's aim is to achieve full exemption from these additional tariffs, as talks progress both virtually and through further delegations.
In parallel, India is actively negotiating trade agreements with the European Union and the United Kingdom. Negotiations with the EU, covering 23 policy areas, are intensifying with a planned conclusion by the year's end. Meanwhile, the India-UK trade pact is nearing finalization. Legal processes for signing are ongoing, with completion expected within three months from the conclusion of negotiations.
(With inputs from agencies.)
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