India pushes for a mini trade deal with the US before July 8 to avoid full reciprocal tariffs. Talks led by Commerce Minister Piyush Goyal aim to secure market access and duty concessions ahead of the interim Bilateral Trade Agreement. Key sectors include textiles, EVs, dairy, and agriculture.
Before the negotiators got down to discussing the details of the India-US Bilateral Trade Agreement (BTA), commerce and Industry Minister Piyush Goyal met US Commerce Secretary Howard Lutnick in Washington to discuss ways to expedite the deal. The meeting was aimed at giving a "political steer" to the negotiations and the talks between the two leaders likely also dwelt on the possibility and ways to reach an understanding on a "mini deal" before the interim trade agreement is finalised by the deadline of autumn of this year.
The mini deal before the interim BTA is aimed at helping India avoid the full force of the reciprocal tariffs that will come into effect from July 8. For that the mini deal has to be agreed to before July 8. While a 26% interim tariff has been imposed on India, its suspension for 90 days means that Indian exports to the US are paying only 10% extra duties right now.
"Good discussions with Secretary Lutnick towards expediting the first tranche of India-US Bilateral Trade Agreement", commerce and industry minister Piyush Goyal posted on 'X' after the meeting. Goyal may also meet US Trade Representative Jamieson Greer during his visit. The mini deal followed by an interim deal will make a full fledged trade agreement between India and US a three step process.
After Goyal's meetings, negotiators have also started discussions on the nuts and bolts of the interim BTA. The officials leading the negotiations will be in meetings for four days - from May 9 to May 22. The Indian delegation led by Goyal and India's chief negotiator and special secretary in the Department of Commerce Rajesh Agrawal will be in the US for the full week. The officials from both sides will be engaging on the issues around market access, rules of origin and non-tariff barriers. Officials say that the mini deal before the interim BTA will be largely focussing on market access in goods.
India's notice to the World Trade Organization (WTO) reserving its right to impose retaliatory duty on certain US products over American tariffs on steel and aluminium would also figure in the BTA negotiations. Team of Indian officials led by Agrawal was in Washington last month also. Both sides had three days of meetings with Assistant US Trade Representative for South and Central Asia Brendan Lynch during the first visit. The BTA is the most important trade agreement that India is negotiating as the US remains its largest trading partner and market. Early this month the FTA with UK was concluded and similar deals with the European Union (EU), Oman, Australia and many others are in final stages.