India seeks advantage over rivals as US trade pact nears finalisation

Indian trade officials will seek comparative advantage over other countries during negotiations to advance a trade deal with Washington this week. 

A team, led by chief negotiator Darpan Jain, reached the US on Monday for a three-day trip to conclude the first phase of a trade pact agreed in February. The two nations reached an agreement before the US Supreme Court struck down President Donald Trump’s sweeping reciprocal tariffs. His administration imposed a new 10 per cent tariff from Feb. 24 for all nations.

 

As part of the deal, US tariffs on Indian goods were to be cut to 18 per cent from 50 per cent , with New Delhi pledging to buy $500 billion of American goods over five years. The Supreme Court’s decision, however, has prompted countries including India to review the deal, as the agreed rates were based on reciprocal tariffs. 

 

 

Indian Commerce and Industry Minister Piyush Goyal said Monday that while the first phase of the deal has been finalized, efforts are underway to ensure India gets preferential access to the US market compared with competitors.

 

This is the first trip of Indian negotiators after they postponed a February visit to Washington to finalize the interim deal. The two sides were scheduled to sign the first phase in March and then move toward a comprehensive bilateral trade agreement. 

 

Officials in Washington will also discuss the probe started by the US Trade Representative into countries including India over concerns about forced labor and excess production capacity.

 

New Delhi has denied the allegations, asking Washington to terminate the investigations and address the issue within the framework of ongoing trade negotiations and not through unilateral measures.

 

Indian Commerce Secretary Rajesh Agrawal had said last week that both sides will “sit together and discuss how these issues need to be structured and addressed” and officials will finalize timelines and the next steps in the bilateral talks.

 

New Delhi is keen to boost exports after trade deficit narrowed in March as shipments to and from the Middle East were disrupted by the Iran war.