US Delegation to Visit India on August 25 for Crucial Trade Talks.
A US delegation will visit India on August 25 for the sixth round of negotiations on a long-discussed bilateral trade agreement, according to officials cited by PTI. The visit follows the fifth round of talks held last week in Washington, where progress was made but key issues remain unresolved.
Deal Still Elusive Amid Tariff Pressure
The upcoming talks carry added urgency, as the US is set to implement new tariff hikes starting August 1, raising pressure on both sides to make headway. However, officials on both sides caution that a comprehensive deal is still some distance away.
US Trade Representative Jamieson Greer told CNBC that while India has shown greater openness in talks, particularly around market access, its protectionist trade stance continues to be a sticking point.
India’s Demands
India is seeking the rollback of a proposed 26% additional tariff and significant reductions on existing duties on steel and aluminium, which currently face tariffs as high as 50%. New Delhi is also pushing for greater access to the US market for its key export sectors, including:
- Textiles and garments
- Leather goods
- Gems and jewellery
- Agricultural products such as grapes and bananas
- Auto parts
- US Priorities
In contrast, the US is pressing India to lower tariffs on a wide range of goods including:
- Industrial equipment
- Electric vehicles
- Dairy products
- Wines and apples
- Tree nuts
- Genetically modified crops
However, India has so far resisted making concessions on farm and dairy goods, with several farmer unions urging the government to exclude agriculture from the negotiations entirely.
An Interim Deal Likely
With a final agreement still out of reach, diplomats say both countries may pursue a limited, interim deal in the coming weeks. Such an agreement could act as a confidence-building step before a more comprehensive pact, tentatively eyed for September or October.
Strong Trade Ties Continue
Despite slow progress on the trade deal, economic ties remain robust. India’s exports to the US jumped nearly 23% to $25.51 billion in the April–June quarter, while imports rose 11% to $12.86 billion.
As the clock ticks down to the next round of talks, both sides are expected to intensify negotiations in hopes of breaking the deadlock on key trade barriers.
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