India-US BTA talks: High-level team in America; firm on agri, dairy sectors: Report

A high-level team from India’s Commerce and Industry Ministry has arrived in Washington to secure a bilateral trade agreement (BTA) with the United States as tariff threats from Trump admin looms with a fresh deadline, news agency ANI reported.

The four-day talks are set to begin Monday morning (US time). India’s chief negotiator, Rajesh Agrawal, who serves as special secretary in the Commerce Department, will join the discussions on Wednesday, while other officials are already there to set the initial agenda and discuss procedural issues.

These talks are crucial because both sides need to resolve differences in key sectors like agriculture and automobiles. Meanwhile, the US has postponed imposing additional tariffs on several countries, including India, until August 1.

When asked whether an interim deal might be reached before August 1, an official, speaking on condition of anonymity, said, “We’re working towards a BTA. How it progresses—whether in phases—will be decided mutually. We’re aiming for a deal that benefits both sides.”

Earlier, the Indian delegation was in Washington from June 26 to July 2 for negotiations.

India stands firm on agriculture and dairy tariffs

Reports indicate India is taking a tough stance against US demands for lower tariffs on agricultural and dairy products. So far, India has not offered duty cuts in the dairy sector in any of its free trade agreements.

India is also pushing for the reduction of US tariffs on steel and aluminium (currently around 50%) and automobiles (25%). Under World Trade Organization (WTO) rules, India reserves the right to impose retaliatory duties if needed.

Trump’s tariff letters

Earlier, President Donald Trump announced steep tariffs on several countries, including India. However, these tariffs were postponed first to July 9, and then again to August 1.

The Trump administration has sent tariff warning letters to multiple trading partners, including Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Laos, Serbia, and Tunisia.

The US is seeking tariff reductions from India on various products, including industrial goods, automobiles, wines, petrochemicals, and agricultural products such as dairy, apples, tree nuts, and genetically modified crops.

India looking for incentives

Meanwhile, India is looking for concessions for its labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.

Both countries hope to conclude talks for the first phase of the proposed BTA by September or October, although they are exploring the possibility of an interim deal before then.

India’s merchandise exports to the US rose 21.78% to $17.25 billion during April-May of this fiscal year, while imports from the US grew 25.8%.