India, US likely to seal interim trade deal in 48 hours: Report
The ongoing negotiations in Washington aim to avoid tariff reactivation. Agriculture and dairy are likely to be excluded due to India's concerns for farmers.
India and the United States are likely to strike an interim trade deal within the next 48 hours, with negotiations between the two sides going on Washington, reported NDTV, quoting sources.
The development comes at a time when the Indian negotiators have extended their stay in Washington as both sides rush to clinch the deal before the July 9 deadline, after which the paused tariffs imposed by US President Donald Trump will be reactivated.
Major differences
However, there are several differences that had to be ironed out as both sides have apparently taken a rigid stand on these issues. The NDTV report states that these issues include Washington’s demand that India opens up its agricultural market to its genetically modified crops, but New Delhi is not keen on it in a bid to protect Indian farmers.
The US is also seeking greater access to the Indian dairy sector. But according to a report in NDTV Profit, both these issues are likely to keep out of the proposed mini trade deal due to concerns raised by the Indian side over rural livelihood and food safety.
Also Read: US-India trade deal soon, will help America compete: Trump
India seeks tariff concessions
As for India, New Delhi is also demanding reasonable concessions on tariffs with regard to labour-intensive export commodities like footwear, clothing and leather. These sectors are also major employment generators.
According to media reports, India is not ready to sign a deal that fails to address the issues regarding sectoral access and reciprocal tariffs on its exports. They further stated that the negotiators are of the opinion that unless broader tariff cuts, especially on high-employment goods, are not achieved, the goal of doubling the Indo-US bilateral trade to $500 billion by 2030 will remain unrealistic.
Also Read: Trump and Modi share strong ties, both nations close to trade deal: White House
Reduction of reciprocal tariffs
The NDTV Profit report stated that the focus of the deal has been narrowed to reductions or removal of reciprocal tariffs.
US President Donald Trump on Tuesday claimed that an Indo-US trade deal would soon be clinched, ensuring significantly lowered tariffs that would allow both countries to compete.