Hectic parleys are underway between officials of India and the US in Washington on the proposed interim trade agreement between the two countries, an official said on Wednesday.
Illustration: Dado Ruvic/Reuters
The talks entered the seventh day on Wednesday in Washington, the official said.
While India is seeking greater market access for its labour-intensive goods, the US wants duty concessions for its agricultural products.
The Indian team, headed by special secretary in the Department of Commerce Rajesh Agrawal, is in Washington for negotiations.
The stay of the Indian officials has been extended.
Initially, the delegation was scheduled to stay for two days after the talks commenced on June 26.
These talks are important as the suspension of Trump’s reciprocal tariffs is ending on July 9.
The two sides are looking at finalising the talks before that.
India has hardened its position on giving duty concessions to American farm products.
It is seeking duty concessions for its labour-intensive goods such as textiles, engineering, leather, gems and jewellery.
On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days.
However, the 10 per cent baseline tariff imposed by America remains in place.
India is seeking full exemption from the additional 26 per cent tariff.
The US is demanding duty concessions in both the agriculture and dairy sectors.
But these segments are difficult and challenging areas for India to give duty concessions to the US as Indian farmers are into sustenance farming and have small land holdings.
Therefore, these sectors are politically sensitive.
India has not opened up the dairy sector for any of its trading partners in free trade pacts the country has signed so far.
The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops.
India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.
The two countries are also looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year.
The pact is aimed at more than doubling bilateral trade to $500 billion by 2030 from the current $191 billion.
Before the first tranche, they are trying for an interim trade pact.
The US team was here last for the talks.
India’s merchandise exports to the US rose by 21.78 per cent to $17.25 billion in April-May this fiscal, while imports rose by 25.8 per cent to $8.87 billion.
