India and the US Collaborate to Eliminate Trade Barriers

India and the US are working to remove trade barriers to enhance market access and integrate supply chains, with plans for a Bilateral Trade Agreement by 2025. The negotiations will address tariff issues impacting various sectors, including engineering, textiles, and marine products, aiming to significantly boost bilateral trade by 2030.

India and the United States are currently working towards enhancing trade relations by focusing on increasing market access, reducing tariff and non-tariff barriers, and improving supply chain integration. Minister of State for Commerce, Jitin Prasada, made this announcement in the Lok Sabha following a week-long delegation visit to the US, as both nations endeavor to finalize a Bilateral Trade Agreement (BTA) by the fall of 2025.

In response to inquiries regarding the impact of US tariffs on Indian exports, Prasada noted that no reciprocal tariffs had been imposed by the US against India at this time. His remarks followed a visit by Commerce Minister Piyush Goyal’s delegation to the US, amid ongoing interministerial discussions in India aimed at reducing high tariffs on products like automobiles for mutual economic gain.

Discussions around the BTA may encourage India to decrease tariffs, potentially benefiting key labor-intensive sectors such as engineering goods, textiles, and marine products, according to sources familiar with the matter. Commerce Ministry data reveals that India’s engineering goods exports amounted to $17.62 billion in FY 2023-24, along with significant contributions from other sectors.

During discussions on February 13, Prime Minister Narendra Modi and President Donald Trump agreed to advance negotiations for a comprehensive BTA and set a goal to boost bilateral trade to $500 billion by 2030 under the initiative dubbed “Mission 500.” Prasada highlighted that the US had issued a memorandum to examine the impact of non-reciprocal trade arrangements.

Furthermore, the US Secretary of Commerce and the United States Trade Representative (USTR) will investigate the effects of trade practices and propose remedies for affected partners. Prasada reaffirmed India’s commitment to engaging with the US to foster equitable trade relations, emphasizing a balanced bilateral relationship.

In 2023, bilateral trade in goods and services between India and the US exceeded $190 billion, with India exporting $83.77 billion worth of goods and importing $40.12 billion, resulting in a trade deficit of $43.65 billion for the US.

In conclusion, India and the United States are focused on bolstering trade relations through a series of initiatives aimed at reducing barriers and increasing market access. With discussions underway to finalize a Bilateral Trade Agreement by 2025, both nations are striving for equitable trade practices. By addressing tariff issues, both sides seek mutual economic benefits and aim to enhance bilateral trade significantly by 2030.

Original Source: www.hindustantimes.com