India-US Interim Trade Deal: Focus on Garments, Dairy, and Seafood

India and US are in the final stages of talks to seal an interim trade deal before the July 9 deadline. The focus is on tariff cuts and market access.

Indian and US negotiators are pushing for a breakthrough on an interim trade deal.

Source : US Embassy

New Delhi/Washington, July 3 (IANS) As the US reciprocal tariffs deadline looms, hectic parleys are currently underway in Washington, DC, between officials of India and the US on finalising the proposed interim trade deal in the next couple of days.

While New Delhi is seeking greater market access for its labour-intensive goods such as garments, footwear, and leather — which are major job creators — Washington wants duty concessions for its agricultural and daily products, according to officials.

The Indian trade negotiators have extended their stay in US, signalling a last-minute push to iron out key differences. They have maintained that broader tariff cuts, especially on high-employment goods, are needed to reach the goal of doubling bilateral trade to $500 billion by 2030.

The focus of the India-US interim trade deal has narrowed down to reciprocal tariff reductions or removals. India’s negotiating team, led by Special Secretary Rajesh Agarwal, is engaged in high-level talks in Washington to conclude the bilateral trade agreement.

Indian and US negotiators are aiming to finalise an interim trade deal ahead of the July 9 deadline that has been fixed by US President Donald Trump for the 90-day pause on new tariffs that were to be levied on Indian products. Negotiations are expected to continue after that for a bigger trade deal to be signed in September-October.

However, as a quid pro quo, India is likely to press for improved access to the US market for seafood products like shrimp and fish, as well as spices, coffee, and rubber- segments where Indian exporters are globally competitive but face tariff competition in the American market, according to earlier reports.

India has already started buying more oil and gas from the US to reduce the trade surplus and has offered to increase these purchases. India has proposed significant tariff reductions, potentially lowering average duties from 13 per cent to 4 per cent, in exchange for exemptions from US tariff hikes imposed during the Trump administration.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)