India and the US are preparing to negotiate a Bilateral Trade Agreement (BTA) to increase trade and reduce tariffs. The announcement follows President Trump’s statements about India’s high tariffs, with the aim to negotiate by fall 2025. Commerce Minister Piyush Goyal recently discussed trade with US officials, emphasizing the importance of these negotiations.
Prime Minister Narendra Modi and US President Donald Trump are set to appoint representatives to negotiate a multi-sector Bilateral Trade Agreement (BTA). Reports indicate the focus will be on enhancing market access, lowering tariff and non-tariff barriers, and improving supply chain integration. During Modi’s recent Washington visit, both nations expressed a commitment to more than double their two-way trade and initiate discussions on the BTA by fall 2025.
This announcement coincides with Trump’s assertion that India has agreed to significantly reduce tariffs, which he claims are excessively high, hindering American businesses from entering the market. In statements made from the Oval Office, Trump emphasized that other countries, including Canada and Mexico, have taken advantage of the US, stating, “India charges us massive tariffs, massive, you can’t even sell anything into India.”
Trump characterized India as a high-tariff nation and outlined plans to impose reciprocal tariffs on countries that levy charges on American products starting April 2. During his address to Congress, he labeled India’s tariffs as “very unfair”. Concurrently, Commerce Minister Piyush Goyal recently concluded trade discussions in Washington with key US officials, including USTR Jamieson Greer and Commerce Secretary Howard Lutnick.
The potential negotiation of a Bilateral Trade Agreement between India and the US marks a significant step towards enhancing trade relations. The agreement aims to reduce tariffs, boost market access, and integrate supply chains further. Both leaders have committed to addressing tariff barriers, reflecting an urgent desire to rebalance trade dynamics amid ongoing disputes.
Original Source: www.livemint.com
