US-India Trade Talks Kick Off in New Delhi Amid Tariff Tensions
Trade experts are calling Tuesday’s face-to-face meeting between US and Indian negotiators a positive breakthrough, like finding your way through thick fog on a chilly morning. Held in New Delhi, the session brought together Brendan Lynch, the US Assistant Trade Representative for South and Central Asia, and India’s top negotiator, Rajesh Agrawal. It’s the first in-person chat since the US slapped a steep 50% tariff on Indian goods over India’s purchase of Russian oil during the Ukraine crisis.
This meeting comes after weeks of virtual talks and a last-minute postponement of the sixth round of bilateral trade negotiations, originally set for August 25-29. Both sides aimed to thaw the icy relations around a potential Bilateral Trade Agreement (BTA). While no big deal was signed, the vibe was constructive, signaling that the US and India want to keep doors open despite recent hurdles.
The US is pushing hard for better market access for its goods and services, tougher intellectual property rules, and clearer guidelines on data, tech trade, and investments. On India’s side, protecting the agriculture sector remains a top priority to safeguard food security and fair prices for farmers. Negotiators might ask the US to ease up by focusing on select products rather than a full market overhaul.
There’s growing talk that India could allow limited entry for high-end US items, like premium dairy products and niche commodities such as corn. These wouldn’t hurt small farmers’ livelihoods and could boost US exports in targeted ways, avoiding a wide-open Indian market.
A report from the India-based Global Trade Research Initiative (GTRI) highlights a key sticking point: progress hinges on the White House dropping an extra 25% duty on Indian goods tied to Russian oil imports. In return, India might offer reciprocal tariff cuts or tariff rate quotas (TRQ) for specific industrial goods, but with strong safeguards for micro, small, and medium enterprises (MSMEs), public procurement, and food security.
The strategy seems to be a step-by-step approach, starting with a mini-deal on industrial goods, select services, and limited agricultural products. This could include new oversight mechanisms, letting both nations score quick wins before tackling tougher issues in future rounds.
India’s steady approach has held firm against White House pressures, and if this momentum builds, expect formal US-India trade talks to ramp up soon. These developments could reshape bilateral trade ties and ease global tariff tensions.
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