India is pushing for a trade agreement that would give its exporters a competitive edge over regional rivals, as US Trade Representative Jamieson Greer arrives in New Delhi for two days of talks, according to a report by Business Today.
India Seeks Tariff Advantage Over Asian Rivals
India is looking for an agreement that provides a tariff advantage over competing Asian economies, including members of the Association of Southeast Asian Nations (ASEAN) such as Vietnam. The country also wants guarantees that the United States will not impose fresh tariffs after the pact is signed, Business Today reported.
Commerce and Industry Minister Piyush Goyal said on June 22: "We are trying to work out with the US how they will ensure that we will get a comparative advantage, so that our exporters can benefit." Goyal set a clear timeline, saying he would welcome an agreement concluded before July 24, when Washington's temporary 10% tariff on trading partners is due to expire. "The faster, the better," he added.
Talks Follow G7 Summit and Preliminary February Deal
Greer's visit comes shortly after Prime Minister Narendra Modi and US President Donald Trump held their first meeting in more than a year on June 17 during the G7 summit in France. The two countries are trying to finalise a pact seen as important for improving bilateral relations that have recently come under strain.
In February, India and the United States reached a preliminary trade understanding that included a framework of 18% tariffs on Indian exports in return for India lowering certain trade barriers and increasing purchases of American products. At that stage, the tariff rate for India was lower than those applicable to rival economies such as Bangladesh and Vietnam.
Supreme Court Ruling and Section 301 Investigation Stall Progress
Progress towards a final agreement stalled after the US Supreme Court struck down Trump's broad-based global tariff measures, Business Today reported. The negotiations have also become more complex because of ongoing Section 301 investigations by the Office of the US Trade Representative into India and other countries concerning allegations of excess industrial capacity and forced labour.
Analysts say the probe is being used by the US to encourage India to further open its market to agricultural and other products, while also increasing purchases of energy and defence equipment.
Key Tariff Framework Details
| Aspect | Details |
|---|---|
| Tariff on Indian exports | 18% under February framework |
| India's concessions | Lower trade barriers, increased US product purchases |
| Competitor tariffs (Bangladesh, Vietnam) | Higher than 18% |
| Temporary US tariff expiry | July 24 (current 10% on trading partners) |
Greer's office stated that the objective of the talks is to secure a trade arrangement that is "fair, balanced, and reciprocal." The coming days will determine whether the two sides can bridge their differences and finalise a deal that provides India the advantage it seeks.
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