Serious lack of reciprocity in trade with India: USTR Jamieson Greer

The United States Trade Representative (USTR) Jamieson Greer has said that there is a “serious lack of reciprocity” in the trade relationship with India, while welcoming India’s constructive engagement towards the conclusion of the Bilateral Trade Agreement (BTA).

 

“These ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers. India’s constructive engagement so far has been welcomed, and I look forward to creating new opportunities for workers, farmers, and entrepreneurs in both countries,” Greer said in a statement, welcoming the announcement of the finalisation of the terms of reference for the BTA by Vice President JD Vance and Prime Minister Narendra Modi.

 

Releasing a factsheet, the USTR office said this announcement builds on significant work done since February 13, when Prime Minister Modi visited President Trump and the two agreed to launch negotiations for a BTA. “The terms of reference announced today by Vice President Vance establish a roadmap for mutually beneficial, multi-sector Bilateral Trade Agreement negotiations. Goals for the United States include increasing market access, reducing tariff and non-tariff barriers, and negotiating a robust set of additional commitments to ensure long-term benefits,” it said.

 

The factsheet said the United States has long recognised significant trade barriers with India. “As a result, the United States ran a $45.7 billion goods trade deficit with India in 2024, a 5.1 per cent ($2.2 billion) increase over 2023. The United States welcomed the tariff reductions India implemented during the Prime Minister’s meeting with President Trump in February and its willingness to further reduce tariffs on US products as part of the BTA,” it added.

 

The USTR office said India’s average applied tariff is 17 per cent, among the highest of the world’s largest economies, while the US average applied tariff is 3.3 per cent. “In addition to tariffs, technical barriers to trade, regulatory barriers, and restrictions on access to the market in the services, industrial, and agricultural sectors also reduce US exports to India. The terms of reference announcement with India is a critical step forward in negotiations with India to achieve reciprocal trade with one of our most strategic partners and deliver results to the American people,” it added.

 

In a statement after the meeting between Vance and Modi on Monday, the White House said both leaders welcomed “significant progress” in the negotiations for a trade deal. “The BTA presents an opportunity to negotiate a new and modern trade agreement focused on promoting job creation and citizen well-being in both countries, with the goal of enhancing bilateral trade and supply chain integration in a balanced and mutually beneficial manner,” it added.