Prime Minister Modi and President Trump plan to negotiate a Bilateral Trade Agreement to boost trade and reduce tariffs. The discussions will focus on market access and supply chain integration. Trump criticized India’s tariffs, claiming they hinder U.S. businesses. Minister Piyush Goyal recently met with U.S. trade officials to further these talks.
Prime Minister Narendra Modi and U.S. President Donald Trump have reportedly come to a consensus to appoint representatives for discussions concerning a mutually advantageous multi-sector Bilateral Trade Agreement (BTA). Sources indicate that these representatives will aim to enhance market access, decrease tariff and non-tariff barriers, and strengthen supply chain integration between the two nations.
During Prime Minister Modi’s recent visit to Washington, both nations expressed their intention to more than double bilateral trade and initiate negotiations for the BTA by fall 2025. This decision emerges amidst President Trump’s assertions that India has consented to reduce its tariffs significantly.
In remarks made from the Oval Office, President Trump stated, “Our country, from an economic standpoint and financial standpoint and a trade standpoint, has been absolutely ripped off by almost every country in the world,” referring specifically to India’s high tariffs which he characterized as restrictive. He emphasized that India has agreed to lower tariffs due to increased scrutiny over these policies.
Furthermore, President Trump reiterated India’s status as a high-tariff nation and mentioned reciprocal tariffs would be implemented against countries imposing levies on U.S. goods. He expressed concern about the unfairness of the tariffs during his address to Congress, particularly targeting India and other similar nations.
Additionally, Commerce and Industry Minister Piyush Goyal returned from Washington after engaging in trade discussions with U.S. counterparts. Throughout his week-long visit, he held discussions with key figures, including U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick.
The negotiations for a Bilateral Trade Agreement between India and the United States mark a significant step towards enhancing trade relations. With both leaders committing to reducing tariffs and increasing market access, the potential for growth in bilateral commerce is promising. The discussions follow President Trump’s critical stance on India’s tariffs, highlighting a pivotal moment for both nations in international trade policy.
Original Source: www.livemint.com
