India-US Bilateral Trade Agreement Negotiations

India is considering reducing customs tariffs on specific imports from the US and seeks to ease regulatory barriers for its exports.

Potential Concessions

• Tariff reductions on imports such as gas, cherries, and pecan nuts.
• Possible market access negotiations for Indian exports like grapes.
• Consideration of tariff rate quotas on gold purchases from the US.

India currently imposes a 30% import tariff on cherries and pecan nuts. Discussions are expected to conclude the first phase of the proposed Bilateral Trade Agreement within six months.

Negotiation Details

• Senior officials from both countries will engage in three-day talks.
• Focus on the first phase of the agreement, emphasizing goods trade issues.
• India seeks easier sanitary and phytosanitary measures and removal of technical barriers.

Regulatory and Strategic Considerations

• India imposes around a 2.5% duty on feedstock and may offer tariff concessions on ethane imports.
• Global Trade Research Institute advises India to focus on eliminating tariffs on industrial goods.
• Avoid discussions on intellectual property, digital trade, agricultural tariffs or subsidies, and government procurement.

Challenges

• US regulatory requirements pose hurdles for Indian exporters.
• Absence of a Fast Track Trade Authority (FTTA) in the US could lead to Congressional alterations in the agreement.
• India's unilateral tariff reductions on US products have not been reciprocated.