US Offers India Favorable Tariffs in Trade Agreement
New Delhi, November 14: The United States has assured that under the proposed Bilateral Trade Agreement (BTA), India will benefit from more favorable tariffs compared to other countries. A senior government official provided this information on Saturday. However, the official clarified that the benefits India receives will depend on the final tariff arrangements. Currently, both countries are negotiating to finalize the first phase of the trade agreement and the overall deal.
According to the official, the US has assured New Delhi that the tariff arrangements in the trade agreement will be better than those offered to its competitive countries. However, it remains to be seen how the final tariff structure will be shaped.
The government official stated that India aims to complete the first phase of the trade agreement by the end of the current financial year. For this, both countries are negotiating at two levels. The first round of talks focuses on finalizing the initial phase of the agreement, while the second addresses other issues related to the comprehensive bilateral trade agreement. The official noted that the outcome of the second investigation initiated by the US Trade Representative’s Office (USTR) against India is still pending. Therefore, the final position on tariffs will only be clear after the results of this investigation and the conditions agreed upon by both countries.
Progress in Trade Agreement Negotiations
According to the official, the initial package of the trade agreement will not include issues related to services. These will be discussed in the second phase of negotiations and will be incorporated into the comprehensive bilateral trade agreement. He explained that the final agreement will take the form of a legal document, which will also include annexures related to various subjects. The agreement will feature a separate chapter aimed at simplifying customs and trade, establishing rules regarding import-export processes and customs arrangements between the two countries.
Previously, officials from the commerce ministry had reported that discussions on customs and trade facilitation issues took place between India and the US last week. A two-member US team visited India on November 2 and 3, during which officials from both countries discussed topics related to simplifying customs and trade processes. India and the US are negotiating the trade agreement in different phases, with both countries aiming to reach an agreement on issues that can be quickly settled for initial benefits in the first phase.