India and the US are set to step up trade negotiations as both countries work towards a broader Bilateral Trade Agreement (BTA).
A US delegation led by Assistant US Trade Representative Brendan Lynch will visit New Delhi from June 1 to 4 to finalise details of the interim trade pact and push forward discussions on the wider agreement.
The talks are expected to focus on market access, non-tariff measures, customs and trade facilitation, investment promotion and economic security alignment, according to a statement from India’s Department of Commerce.
US Trade Representative Jamieson Greer said discussions with India had been “meaningful” and confirmed that a framework agreement had already been reached. “We have a team going there next week,” Greer said during an interaction with the Council on Foreign Relations.
He added that he expects to meet Commerce and Industry Minister Piyush Goyal soon to finalise the agreement based on the joint framework already agreed between the two sides.
The first in-person meeting to finalise the interim trade agreement was held in Washington from April 21 to 23. The Indian delegation is being led by Additional Secretary in the Department of Commerce Darpan Jain.
Under the framework agreement reached on February 8, the US had reportedly agreed to reduce additional duties on India to 18 percent from 50 percent in exchange for greater market access in industrial and agricultural products.
However, progress was affected after the US Supreme Court invalidated country-specific reciprocal tariffs that formed the basis of several US trade arrangements with partner nations.
Following the verdict, the US imposed an additional 10 percent tariff on all trading partners from February 24 under Section 122 of the Trade Act. These tariffs are expected to expire on July 24 unless extended.
When asked whether the 10 percent tariffs would continue, Greer said the law does not limit an extension. However, he noted that the office of the US Trade Representative is currently focused on two ongoing Section 301 investigations — one related to excess industrial capacity and the other concerning the use of forced labour.
The investigations aim to assess the impact of such practices on American commerce and to pressure trade partners to curb forced labour practices and reduce subsidies that contribute to excess production capacity.
