US officials are likely to visit India for next round conversation on interim trade deal: Govt Source – CNBC TV18

In a new set of development at the Indo-American trade talks, government sources have told CNBC-TV18 that US authorities are likely to visit India for the next round negotiation for a proposed interim trade deal in the coming weeks.

Sources said that with a rapid moving forward, an interim deal seems possible before the first installment of the proposed bilateral trade agreement (BTA).

On 21 May, government officials indicated that India is a target of full exemption from an additional tariff from 26% additional tariffs in the interim trade deal being discussed with the United States, aimed at preventing the safety of mutual tariffs before 9 July that is currently stopped by the world’s largest economy.

Saying that goods and digital services are likely to be part of an interim trade deal with the US, government officials stated that the Trump administration does not have the right to bring a tariff less than the MFN (most premature) rate, which would require approval from the US Congress.

However, the US government can remove mutual tariffs for many countries including India. To increase exports to the US for the benefits earned from inter-tariffs for Indian exporters, officials said that Indian products do not face such non-tariff barriers (NTBs) in the US, the way they face in the European Union, saying that recent issues on Indian mango exports have also been resolved.

While the import of genetically modified (GM) crops from the US remains a non-starter due to regulatory criteria in India, India is open to import non-GM yield like Alpha-Alpha Hey. Officials said that to import Indian law would require clear certification of non-GM alpha-alpha, which can put the issues for the US as GM and non-GM crops, often cultivated uninterruptedly.

America is also seeking concessions in some industrial items, automobiles, wines, petrochemical products, dairy and other agricultural products.

Officials had said that India is also aiming for minimum import price (MIP) or import quota in sensitive areas such as dairy and agriculture as part of the deal, saying that India also wants to cut 5% to 7% basic customs (BCD) for exporting labor-intensive products such as leather.

India and the United States want to double their bilateral trade in $ 500 billion by signing a 1 trisker of a mutually beneficial multi-regional bilateral trade agreement (BTA) by October 2025.