New Political Momentum for India-US Bilateral Trade Agreement Discussions

Momentum Builds for India-US Bilateral Trade Agreement

The discussions surrounding the India-US Bilateral Trade Agreement (BTA) are gaining traction as Minister Piyush Goyal embarks on a visit to Washington. Central to the dialogue are key topics such as market access, tariffs, and non-tariff barriers. Both countries aspire to conclude the agreement by autumn, with a temporary arrangement under consideration to avert tariffs set to kick in on July 8.

Minister Goyal’s official engagements will take place from May 17 to May 20, while negotiators are scheduled to convene from May 19 to May 22.

During his visit, Minister Goyal will meet with prominent American political figures deeply involved in trade discussions. Detailed negotiations for the envisaged BTA are anticipated to commence in the immediate future. This development is particularly noteworthy following US President Donald Trump’s recent remarks in Doha, where he indicated that India is “willing to literally charge us no tariffs” on products from the US in relation to the trade agreement. In response, External Affairs Minister S. Jaishankar mentioned that the talks are still ongoing, emphasizing the complex nature of the negotiations.

“Nothing is decided until everything is,” he remarked, underscoring India’s aim for a trade arrangement that is “mutually beneficial” for both nations. “The trade agreement must work for both sides. That would be our expectation. Until this goal is achieved, any judgment on the discussions would be premature,” he asserted.

As per various sources, Goyal, already present in the US, will initially confer with US Secretary of Commerce Howard Lutnick, followed by a meeting with US Trade Representative (USTR) Jamieson Greer, where they will review the advancements made by negotiators since the Terms of Reference (ToR) for the agreement were established in March. This marks Goyal’s second trip to the US since India and the US agreed to pursue negotiations for the BTA in February during the meeting between Prime Minister Narendra Modi and President Trump. His first trip occurred in early March, prior to the formal BTA negotiations when he met with both Lutnick and Greer.

In their discussions, Goyal, Lutnick, and Greer will assess the current status of negotiations, pinpoint any obstacles hindering progress, and strategize on how to eliminate them. While both nations are working towards a deadline this autumn to finalize discussions, they are also considering an interim agreement to mitigate the impact of reciprocal tariffs set to be enforced from July 8 after a 90-day suspension.

Additionally, the agenda will involve discussions on aspects like market access, rules of origin, and non-tariff barriers. India’s recent notification to the World Trade Organization (WTO) reserving the right to impose retaliatory duties on specific US goods over American tariffs on steel and aluminum will also be a crucial point in the BTA negotiations.

In the lead-up to these discussions, a team of Indian officials, headed by chief negotiator Rajesh Agrawal, visited Washington last month to expedite talks. Agrawal participated in three days of negotiations with Assistant US Trade Representative for South and Central Asia, Brendan Lynch, during this initial visit. The BTA holds significant importance for India as the US stands as its largest trading partner. Earlier this month, India concluded a free trade agreement (FTA) with the UK, and similar negotiations with the European Union (EU), Oman, Australia, and others are in the advanced stages.