New Delhi: India and the United States are in the final stages of talks aimed at reducing reciprocal tariffs on goods, Commerce Secretary Rajesh Aggarwal said on Monday.
Both countries have completed six rounds of negotiations, and an interim trade agreement could be signed soon. U.S. officials have described India’s proposals as “excellent” and responded positively to the discussions.
Aggarwal emphasized that while the deal is near completion, he could not provide an exact date or timeline for signing. “We are very close to concluding an initial agreement, but at this moment, I do not wish to specify a date or time,” he said.
Ongoing bilateral negotiations
The negotiations between India and the U.S. focus on a bilateral trade agreement (BTA) and the reduction of tariffs on specific goods. Aggarwal expressed confidence that both nations are committed to entering an agreement to lower reciprocal duties.
Recently, at a Senate subcommittee hearing in Washington, U.S. Trade Representative (USTR) James Greer described India’s proposals as “excellent” and among the best offers the U.S. has received so far. However, some agricultural and meat products face entry barriers into India, Greer noted.
Background on tariffs
The U.S. had previously imposed a 25% tariff on Indian goods due to trade imbalances and additional duties in response to India’s crude oil imports from Russia. The current negotiations aim to lower these tariffs and ease trade restrictions.
Addressing rice dumping claims
Aggarwal also addressed allegations that India exports rice to the U.S. at extremely low prices. He clarified that over 80% of rice exported to the U.S. is premium basmati rice, which is priced higher than common varieties, negating any dumping concerns. Additionally, existing tariffs on Indian rice are already 50%, making further duties unnecessary.
The interim agreement, once finalized, is expected to strengthen trade relations between the two nations, providing greater market access for Indian goods while addressing U.S. concerns over trade imbalances. Both sides remain optimistic that the deal will pave the way for long-term bilateral cooperation.
Highlights:
- India-US interim agreement on tariff reduction nearing completion.
- Six rounds of negotiations completed, both sides responding positively.
- Basmati rice exports exempt from dumping allegations; existing tariffs already high
- Agreement aims to strengthen bilateral trade and ease market access.
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