India and US to Negotiate Bilateral Trade Agreement Amid Tariff Disputes
India and the US have agreed to negotiate a multi-sector Bilateral Trade Agreement, focusing on reducing tariffs and enhancing supply chains. This follows criticisms from President Trump about India’s high tariffs. Minister Piyush Goyal has engaged in talks with US trade officials to facilitate these discussions.
Reports indicate that Indian Prime Minister Narendra Modi and US President Donald Trump have designated representatives to negotiate a multi-sector Bilateral Trade Agreement (BTA). The negotiations aim to enhance market access, reduce tariff and non-tariff barriers, and improve supply chain integration between the two nations. This decision was made during Modi’s recent visit to Washington, where India and the US committed to more than doubling their bilateral trade and initiating the first discussions for the BTA by fall 2025.
This development occurs against a backdrop of President Trump’s assertion regarding India’s tariffs. He stated that India has consented to significantly lower its tariffs, criticizing the existing high rates that hinder American product sales in India. “India charges us massive tariffs, massive, you can’t even sell anything into India. It’s almost, it’s almost restrictive. It is restrictive,” Trump articulated during his remarks from the Oval Office.
Moreover, Trump highlighted the broader theme of unfair trade practices he perceives from various countries, including Canada and Mexico. He announced that reciprocal tariffs would be enforced on nations imposing levies on American imports beginning April 2. During his address to Congress, Trump reiterated his concerns regarding India’s tariffs, labeling them as “very unfair.”
Additionally, India’s Commerce and Industry Minister, Piyush Goyal, has recently returned from discussions in Washington with US officials. His talks with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick were part of ongoing efforts to enhance bilateral trade relations.
The negotiations between India and the United States represent a crucial step towards establishing a multi-sector Bilateral Trade Agreement aimed at increased trade and reduced tariffs. This initiative arises amid President Trump’s ongoing critique of India’s trade practices and his focus on securing fairer terms for American goods. With both countries committed to enhancing their economic ties, the upcoming negotiations will be vital in determining the future of their trade relationship.
Original Source: www.livemint.com
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