To take forward the proposed bilateral trade agreement between India and America, both the countries are going to start a new round of discussions in New Delhi from December 10. These meetings will not be seen as formal talks, but according to officials, they are being considered very important, because the focus of the talks will be on those key issues, agreement on which will lay the foundation of the agreement.
America’s delegation will come to India
The US delegation is going to come to India under the leadership of Deputy Trade Representative Rick Switzer for this important discussion. This visit is being organized at a time when America has imposed an additional 25% punitive duty on Indian export products along with 25% basic tariff. It is said that this step was taken in the background of the tense situation created by India regarding the purchase of crude oil from Russia.
In the last few months, there has been continuous dialogue between the two countries at the diplomatic level. The US team last visited on September 16, while India’s Commerce and Industry Minister Piyush Goyal has also taken the talks forward by visiting Washington in May and September. The overall negotiations on the trade agreement are being led by Brendan Lynch, USTR’s Assistant Representative for South and Central Asia, from the US side, while Darpan Jain, Joint Secretary, Department of Commerce, is steering the process from the Indian side.
These discussions are also important because just a few days ago, Commerce Secretary Rajesh Aggarwal had expressed hope that India and America can sign an initial framework trade agreement by the end of this year. The implementation of this framework will pave the way for Indian exporters to get relief from many US tariff barriers.
What did Commerce Secretary Rajesh Aggarwal say?
Aggarwal clarified that it will take time to draw up a full bilateral trade agreement, but currently the two countries are moving forward on two parallel tracks. The first focuses on solving important tariff problems in the near future. Second, towards building a long-term comprehensive trade agreement.
So far six rounds of talks have taken place on this topic. The two governments aim to have the first phase of the agreement ready by the autumn of 2025. If seen from a broader perspective, both the countries are working on the target of increasing bilateral trade from the current $191 billion to $500 billion by 2030.
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