U.S.-India Trade Agreement Progress
The U.S. and India are working to finalize an interim trade agreement aimed at establishing a beneficial Bilateral Trade Agreement (BTA). This process involves addressing issues related to services, investment, labor, and government procurement.
Historic Trade Deal Framework
- The agreement includes India's commitment to reduce or eliminate tariffs on:
- All U.S. industrial goods
- Various U.S. food and agricultural products, such as:
- Dried distillers’ grains
- Red sorghum
- Tree nuts
- Fresh and processed fruit
- Certain pulses, soybean oil, wine, and spirits
- India commits to purchasing over USD 500 billion of U.S. products, including energy, ICT, agricultural, and coal products.
Prosperous Path Forward
- The U.S. aims to enhance market access for its exporters and reduce tariff and non-tariff barriers.
- India historically has high tariffs on U.S. products, averaging 37% on agricultural goods and over 100% on certain autos.
- The U.S. and India will address remaining tariff barriers, technical barriers, and trade facilitation issues.
- Non-tariff barriers and digital service taxes will be removed by India to improve bilateral trade.
- The countries will develop bilateral digital trade rules to address discriminatory practices.
Strengthening Economic Security
- The U.S. and India will improve economic security alignment by:
- Enhancing supply chain resilience
- Increasing bilateral trade in technology products
- Expanding technology cooperation
- The U.S. will lower the Reciprocal Tariff on India from 25% to 18%.
