India and the United States wrapped up the fifth round of negotiations for the proposed Bilateral Trade Agreement (BTA) in Washington. The four-day talks, held from July 14 to 17, were headed by Rajesh Agrawal, India’s chief negotiator and Special Secretary in the Department of Commerce.
“The Indian team is coming back,” an official told PTI, adding that the discussions had concluded.
These negotiations are crucial, as both India and the United States aim to finalize an interim trade agreement before August 1—the date when the suspension of Trump-era tariffs, including a 26% duty on Indian goods, is set to expire.
U.S. President Donald Trump initially unveiled the reciprocal tariffs on April 2. However, the duties were paused for 90 days until July 9 to facilitate trade negotiations with various nations. The suspension was subsequently extended to August 1, providing additional time for diplomatic discussions and deals.
The fifth round of talks centered on key sectors such as agriculture and automobiles. The discussions also extended to issues concerning non-market economies and the export control classification known as SCOMET, which encompasses Special Chemicals, Organisms, Materials, Equipment, and Technologies.
India has adopted a resolute position against U.S. requests for tariff concessions in the agriculture and dairy sectors. As part of the ongoing trade negotiations, India is advocating for the elimination of additional 26% tariffs, along with reductions in duties on steel, aluminum, and automobiles. The country has also asserted its right to implement retaliatory tariffs under World Trade Organization (WTO) provisions.
Additionally, India is pushing for preferential market access for a range of labor-intensive export sectors, including textiles, gems and jewelry, leather products, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
The United States, on the other hand, is seeking tariff reductions on a range of products, including industrial goods, automobiles, wines, petrochemicals, agricultural products, dairy, apples, tree nuts, and genetically modified crops.
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