In a move that has raised eyebrows among trade analysts, the White House has quietly softened the language in its official factsheet detailing the new interim trade framework with India, just one day after its initial release. The most significant alteration centres on the language utilised for India’s massive procurement plans from no more "commitment" toward a more flexible "intention." More specifically, the text currently reads that India "intends" to buy over $500 billion worth of American products, including energy, technology, and coal, within the next five years, whereas previously there was an "explicit commitment" by India as regards the aforementioned claims.
This revision, along with other subtle tweaks, alters the perception of obligation within the pact. For instance, the updated document removed "agricultural" products from the specific list of categories tied to that $500 billion purchasing intention. Furthermore, the revised factsheet omitted "certain pulses" from the list of American food items on which India was expected to reduce tariffs.
Another notable shift concerns the contentious area of digital trade. The original text explicitly read, "India will remove its digital services taxes." The current version eliminates this categoric pledge and offers to negotiate a set of rules related to digital trade between the two countries. The pledge to remove the current digital taxes is no longer made.
Yet even though the wording of all these provisions has been modified, the underlying de-escalation of trade tensions nevertheless appears intact. President Trump has followed through on removing the punitive 25 percent tariff imposed on Indian goods last August, recognising India’s steps toward curbing Russian oil imports. In return, the reciprocal tariff on Indian goods entering the US has been reduced to 18 percent, and India is moving to slash tariffs on a wide range of American industrial and agricultural products. New Delhi and Washington are still on track to sign the final trade agreement by mid-March.
Also read: White House fact sheet on interim deal stresses on concluding BTA
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