India, US to finalise details of interim trade deal next week

US team led by chief negotiator to visit India from June 1-4.

India and the US are scheduled to hold chief negotiator-level talks next week to finalise the details of the interim trade agreement, for which the framework was released in February.

A US delegation led by chief negotiator Brendan Lynch is scheduled to visit India from June 1-4 to carry forward the discussion on the proposed bilateral trade agreement (BTA).

“It is proposed to finalise the details of the Interim Agreement and take forward the negotiations under the broader BTA on multiple areas, such as market access, non-tariff measures, customs and trade facilitation, investment promotion, economic security alignment,” the Ministry of Commerce and Industry said in a statement on Wednesday.

India and the US agreed on a framework for an interim agreement in February, after multiple rounds of negotiations. The two countries issued a joint statement in this regard on February 7.

Under the framework, the Trump administration agreed to lower “reciprocal” levies on the majority of Indian products, from 25 percent to 18 per cent, and eliminate the so-called 25 per cent punitive tariff for India’s economic engagement with Russia.

However, change in tariff dynamics following the US Supreme Court’s ruling impacted the trade negotiations.

A team of Indian trade officials led by chief negotiator Darpan Jain visited Washington DC from April 20-23 for an in-person round of meetings with their American counterparts.

The Commerce and Industry Ministry said the US team will visit India to “carry forward the discussions”.

According to the ministry, the framework issued on February 7, reaffirmed both the countries’ commitment to the broader India-US BTA negotiations.

The framework also talked about India’s intent to purchase $500 billion worth of American goods in the next five years. US Secretary of State Marco Rubio, who was on a visit to New Delhi recently, reiterated that India “has committed” to purchasing $500 billion worth of American goods over the next five years, focusing on energy, technology and agriculture. 

Goyal meets Canadian officials, businessmen

Meanwhile, India and Canada have agreed to conclude the Comprehensive Economic Partnership Agreement (CEPA) by the end of this year. As part of the deal, the two countries target to increase bilateral trade to $50 billion by 2030.

Commerce and Industry Minister Piyush Goyal, who is on an official visit to Canada, held a series of meetings with Canadian officials and business leaders to finalise the trade deal and strengthen economic partnership.

“The three-day visit, which commenced with key engagements in Ottawa on May 25, is aimed at advancing bilateral trade and economic ties between India and Canada, with a particular focus on accelerating the ongoing negotiations for the India-Canada CEPA,” according to a statement issued by the ministry.