An Indian delegation returned from Washington after holding deliberations with the US on an interim trade pact which is expected to be finalised before July 9. An official from the Commerce Department said the discussions will continue as some issues in the agriculture and auto sectors are yet to be resolved. The Indian delegation is led by Chief Negotiator Rajesh Agrawal, Special Secretary, Department of Commerce.
The talks are in the last phase and are likely to be concluded before July 9, which marks the end of the 90-day suspension period of the Trump tariffs imposed on a number of countries, including India. “The Indian team is back, but the negotiations will continue,” the official said.
Expressing concern over 25 per cent duty in the auto sector, India has taken up the matter with the Safeguards Committee of the World Trade Organisation (WTO). India has also conveyed to the WTO that it has reserved the right to impose retaliatory duties on select US products in response to American tariffs on steel and aluminium.
The US had, on March 26, announced a tariff increase of 25 per cent ad valorem on imports of passenger vehicles and light trucks and on certain automobile parts originating in or from India, a communication sent by India to the WTO said. The measure on automobile parts applies from May 3, 2025 and for an unlimited duration.
In the agriculture sector, the US is seeking duty concessions on dairy items, apples, tree nuts and genetically modified crops. India has not opened up the dairy sector for any of its trading partners in free trade pacts signed so far. It has toughened its stance on duty concessions to American farm and dairy products.
The Indian delegation was in Washington for negotiations from June 26 to July 2. The US had imposed an additional 26 per cent reciprocal tariff on Indian goods on April 2, but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by the US remains in place. India is seeking full exemption from the additional 26 per cent tariff. The US also wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines and petrochemical products. On the other hand, India wants duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes and bananas.
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