An important meeting was held in New Delhi with the aim of strengthening trade relations between India and the US. During this three -day dialogue, the basic structure of the bilateral trade agreement (BTA) was discussed. The meeting took place at a time when the US plans to implement the reciprocal tariffs from April 2, which could have a significant impact on the trade relations of the two countries.
Who attended the meeting?
The US delegation was led by Assistant Trade Representative Brendon Lynch, while India’s Ministry of Commerce, Additional Secretary of the Ministry of Commerce, participated. The discussion focused on the possible finalization of an agreement by Friday.
Perspective of Indo-American Trade Relations
According to a senior government official, “Trump administration does not place India in the same category of China, Mexico and Canada.” He said that there are serious issues related to currency manipulation, illegal immigration and security with these countries of America, while there are mainly fees related problems with India, which can be solved by dialogue.
Prime Minister Narendra Modi and former President Donald Trump set a target to increase the trade to $ 500 billion by 2030 in February. In this direction, it is planned to finalize the bilateral trade agreement by 2025.
There is a possibility of US fee to be implemented from April 2
The Trump administration has announced the implementation of adverse fees on India from 2 April. India hoped that there would be some concessions in the talks, but there are indications that India is less likely to get exemption from these fees.
Trump said,
“India charges 100 percent fee from us, which is unfair for us.”
He clarified that new fees would be implemented from April 2, which can affect Indo-US trade relations.
India gave some relief signs, but insufficient
India has taken some steps to remove America’s concerns, such as:
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Cut the fee on motorcycles and borbone whiskey in February.
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Proposal to remove 6% fee on online advertisements.
However, these steps are not considered sufficient and more concrete reforms are being needed before the April 2 deadline.
Experts’ opinion and further possibilities
The rating agency Moody’s warned in February that American charges could have a profound impact on developing countries like India, Vietnam and Thailand, as there is a big difference in tariff rates between these countries and the US.
Experts believe that American fees will have limited effects in reviving domestic manufacturing, and there will be many administrative challenges in imposing fees on various items.
The coming week will prove to be important for trade relations between India and the US, as both countries will get more clarity on the impact of adverse fees and the progress of bilateral trade agreement.
