Work is being done on finalizing the bilateral trade agreement between India and the US. According to sources, there is a possibility of bilateral trade agreement between the two countries from September to October. Indian delegation has returned from America. It is now expected that in the second week of August, American delegation will come to India.
The two countries are carrying a target to finalize the Bilateral Trade Agreement (BTA) till September or October. The latest round of talks, that is, in the fifth round, Indian delegation in Washington tried to break the deadlock on auto components, steel and agricultural products. These issues have emerged as a big hurdle in this long talk.
However, the conversation remained inconclusive and the Indian delegation returned to the country a few days before the deadline for US President Donald Trump to stop the tariff on 1 August. Without the trade agreement, India will have to be ready for 26 per cent tariffs, but the government says that India will compromise with America only when its interests are protected.
Why is the deal not being done?
The conversation was interrupted after India refused to accept the American demands of agriculture. Sources had earlier stated that the two countries were close to compromise till the end of June, but the conversation broke before the 9 July deadline determined by Trump. India’s attitude towards the safety of its dairy secure was a major reason for not reaching the last phase of the dialogue.
Meanwhile, Trump has repeatedly claimed that the BTA i.e. BILTERTER trade agreement with India has been almost fixed. Nevertheless, he has warned many countries including members of the BRICS group to impose new tariffs on imports, which is also a member of India.
Also read: India-Rus Trade Deal: Will there be a mini or bilateral trade deal? Indian team returned from America after long discussion
Trump’s warning to BRICS countries
Last week, the US President reiterated that if the BRICS dare to adopt the path of de-dollarization, then he may have to face 10 percent tariffs. He also warned to impose 100 percent fee on Russian goods and a gesture of imposing additional restrictions on Russian oil bought countries. If this happens, it will have a big impact on India.
At least 14 countries have received formal information about the upcoming tariffs of 25 to 40 percent from Washington, while India has not received any such letter. This has raised hopes that despite increasing pressure, the conversation is still going on.
The results of the dialogue in August may decide whether India can avoid punitive fees up to 500 per cent and can make a long pending trade agreement with Washington, which has not been fulfilled yet despite repeated assurances from both governments.
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