Amid US tariff threats, India and the US have agreed to negotiate a multi-sector Bilateral Trade Agreement, focusing on reducing tariffs and enhancing trade relations by 2025. President Trump has criticized India’s high tariffs, asserting they are restrictive, while India aims to address these concerns.
In response to rising tariff threats, Prime Minister Narendra Modi of India and President Donald Trump of the United States have reportedly agreed to appoint representatives for negotiations on a multi-sector Bilateral Trade Agreement (BTA). The key focus will be on enhancing market access, lowering both tariff and non-tariff barriers, and fostering deeper supply chain integration.
During Prime Minister Modi’s recent visit to Washington, India and the US pledged to more than double their bilateral trade and initiate discussions for the BTA, targeting its completion by fall of 2025. This commitment is especially significant amidst President Trump’s assertions that India has consented to significantly reduce its tariffs, which he claims are exorbitant.
In remarks made from the Oval Office, Trump criticized the high tariffs imposed by India, stating they serve as severe obstacles for American businesses seeking to enter the Indian market. He expressed that these measures have rendered economic dealings very limited and described India’s tariffs as “almost restrictive.”
Furthermore, President Trump hinted that India has recognized the need to adjust its tariff policies, suggesting that increased transparency regarding trade practices has prompted this shift. He reiterated his position on reciprocal tariff measures that will be enforced on countries that levy taxes on American exports starting April 2.
Commerce and Industry Minister Piyush Goyal recently returned from Washington where he held discussions with his US counterparts, including US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, to advance trade relations and address the concerns raised by the Trump administration.
The ongoing negotiations between India and the US for a Bilateral Trade Agreement signify an important step toward reducing trade barriers and enhancing mutual commerce. With commitments from both parties to target significant tariff reductions and improve market access, the discussions hold potential for more robust economic relations moving forward.
Original Source: www.livemint.com
