US trade delegation arrives in India for fresh round of bilateral trade talks
This marks the fifth round of in-person discussions overall between India and the US. The Indian side has previously participated in three face-to-face rounds in Washington, with the most recent held in New Delhi.
New Delhi: A US trade delegation arrived in New Delhi on Thursday ahead of a fresh round of negotiations on the proposed bilateral trade agreement (BTA) with India, scheduled to begin on Friday, two people toldMint.
This marks the fifth round of in-person discussions overall and the second led by the US side, which is led by Brendan Lynch, assistant US trade representative for South and Central Asia.
The Indian side previously took part in three face-to-face rounds in Washington, with the most recent held from May 19 to 24.
Earlier talks were conducted in both virtual and physical formats, during which both sides exchanged priority lists and initial proposals.
The upcoming discussions are seen as a crucial step toward resolving tariff-related issues and strengthening bilateral trade ties.
India is seeking tariff concessions for key sectors such as textiles and pharmaceuticals, while the US is pushing for broader access to dairy, e-commerce, and digital trade.
Also read |India likely to seek removal of US steel tariffs in trade talks rather than immediate retaliation
“Lynch is accompanied by officials from the Office of the United States Trade Representative (USTR), the US Department of Commerce, and senior negotiators including Emily Ashby," one of the persons mentioned above said, requesting anonymity.
“The Indian side will be led by chief negotiator Rajesh Agarwal, and both teams are working under a tight deadline to reach a pre-harvest deal before July 8, when the temporary 90-day pause on US reciprocal tariffs is set to expire," this person added.
As first reported by Mint on 16 May, thelooming deadline has intensified efforts on both sides to stitch a trade deal. On 29 May, Mint reported that an American negotiating team was expected to arrive in New Delhi in early June for potentially thefinal round of face-to-face discussions between India and the US. Both sides are aiming to close the deal by the last week of June,
According to the second person mentioned above, the upcoming negotiations will focus on finalising issues related to market access, tariff reduction, and non-tariff barriers, and potentially outlining a framework for a formal BTA.
“Key areas on the table include digital trade, intellectual property, agricultural goods, and critical minerals," this person added, also requesting anonymity.
Spokespersons for India’s Ministry of Commerce and Industry, the Office of the United States Trade Representative, and the US Embassy in New Delhi did not immediately respond to emailed queries.
Tariff tensions, China, and an FTA
The latest round of in-person talks between India and the US come amid rising tariff tensions. The US recently rejected India’s notice at the World Trade Organization (WTO) challenging the 25% tariffs imposed on Indian steel and aluminium exports.
India hopes to resolve these issues through the BTA negotiations but has indicated it may exercise its right to retaliate at the WTO if no resolution is reached by 8 June.
The talks also carry geopolitical weight, taking place amid US concerns over India’s recent defence deal with Russia—an issue that has reportedly unsettled Washington.
Both countries are also seeking to diversify their supply chains and reduce dependence on China, adding strategic urgency to the talks.
Meanwhile, experts have advised caution as India moves forward with broader free trade agreement (FTA) negotiations with the US.
Also read |Asian factories bear scars of Trump's tariff blast
On 28 May, the US Court of International Trade struck down US President Donald Trump’s “Liberation Day" reciprocal tariffs, ruling them illegal under the International Emergency Economic Powers Act.
While the court held that trade deficits do not constitute the “unusual and extraordinary threat" required to invoke emergency powers, the ruling blocks a key pillar of Trump’s trade policy, though Section 232 tariffs on steel and automotive imports remain unaffected.
“India should resist any agreement shaped by threats or based on unlawful measures. Not only do these Trump-era tariffs violate World Trade Organization rules, but the US court has now confirmed they also breach US domestic law," said Ajay Srivastava, a former trade service official and founder of economic think-tank Global Trade Research Initiative.
“With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour US interests," he added.
Also read |As US court declares Trump's tariffs illegal, experts urge India to reassess trade talks
“India must earnestly advocate for a fair and reciprocal trading environment in the upcoming in-person negotiations for the bilateral trade agreement, particularly in light of the US’s rejection of our WTO safeguard notice on steel and aluminum tariffs," said Pankaj N. Umrania, executive director of KND Steel, a steel processing unit.
“These tax impositions have placed Indian manufacturers at a clear disadvantage, disrupting global value chains and hurting processors and MSMEs," he said. “To prevent Indian industry from being unjustly penalised, we urge our negotiators to make steel and aluminum access to the US market a top priority."
topics
