India and US Initiate Bilateral Trade Agreement Negotiations Amid Tariff Concerns
Prime Minister Modi and President Trump have agreed to initiate negotiations for a Bilateral Trade Agreement (BTA), aimed at enhancing trade relations, reducing tariffs, and deepening supply chains. This comes amidst Trump’s assertions about India’s high tariffs and his administration’s plan for reciprocal trade measures. Minister Piyush Goyal recently discussed trade in Washington, indicating continued efforts to improve India-US economic ties.
Recent reports indicate that Indian Prime Minister Narendra Modi and US President Donald Trump have committed to appointing representatives to negotiate a multi-sector Bilateral Trade Agreement (BTA). This agreement aims to enhance market access, alleviate both tariff and non-tariff barriers, and deepen supply chain integration.
During Modi’s recent visit to Washington, both nations expressed their intention to more than double bilateral trade and to finalize the first segment of the BTA by fall 2025. This initiative arises in response to Trump’s allegations regarding India’s high tariffs on American goods, which he believes hinder trade.
In remarks made from the Oval Office, President Trump remarked that India “charges us massive tariffs, massive, you can’t even sell anything into India” and noted that India has now agreed to reduce these tariffs significantly. He described the current trade dynamic as “almost restrictive,” highlighting the need for change.
Trump continued to emphasize the high tariffs imposed by India and indicated that reciprocal tariffs against nations that impose levies on American goods would take effect on April 2. He labeled India’s tariffs as “very unfair” in his address to Congress, reiterating his administration’s stance on the issue.
Commerce and Industry Minister Piyush Goyal recently concluded a week-long visit to Washington, where he engaged in trade discussions with US officials, including US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Goyal’s dialogue with U.S. counterparts underscores the ongoing efforts to strengthen trade relations between the two nations.
In summary, the commitment by India and the US to negotiate a Bilateral Trade Agreement marks a significant step toward improving trade relations. The planned reduction of tariffs, as advocated by President Trump, is poised to facilitate greater market access and enhance economic collaboration. The outcome of these negotiations will be pivotal for both nations’ economies as they seek to expand bilateral commerce by 2025.
Original Source: www.livemint.com
