India-US Bilateral Trade Agreement (BTA)
Commerce and industry minister Piyush Goyal expressed optimism about finalizing the first phase of a proposed bilateral trade agreement with the United States. Most elements of this phase have been agreed upon, with discussions focusing on minor issues.
- US trade officials, led by Brendan Lynch, are set to engage in talks in New Delhi.
- The framework for the first phase was announced on February 3.
- Key focus: Incorporating US legal changes into the agreement.
- Objective: Conclude the first tranche and move towards a comprehensive BTA.
Relief from Section 301 Probes
- A key negotiation focus: Relief from Section 301 probes.
- Aim: Achieve lower tariffs than competitors.
- US Trade Representative Jamieson Greer might visit India once the agreement's broad contours are finalized.
India-UK Comprehensive Economic and Trade Agreement (CETA)
Concerns have been raised regarding India-UK trade relations, particularly focusing on the scaling back of tariff concessions, or "rebalancing," due to unresolved issues.
- Issues: Britain's steel safeguard measures and carbon border adjustment mechanism (CBAM).
- The CETA was signed on July 24, 2025, but is pending implementation due to these issues.
- UK Business and Trade Secretary Peter Kyle is set to discuss these concerns with Goyal in New Delhi.
Impact of UK Tariff Changes
- From July 1, 2026, the UK will limit tariff-free steel imports, reducing quota volumes by 60%.
- Imports above these levels will face a 50% tariff.
- GTRI predicts India's exports worth $775 million could be impacted by the UK's carbon tax on products starting from 2027.
- Goyal has indicated potential retaliation if the UK implements this carbon tax plan.
