While the demands are yet to be firmed up, officials said the two sides are flexible as they aim to conclude the first tranche of the proposed Bilateral Trade Agreement in the next six months.
The issues could be taken up when senior officials of India and the US begin their three-day talks on the pact Wednesday amid threats of reciprocal tariffs from the Donald Trump administration.
“Both sides are flexible and serious consultations are going on. We want market access for things like grapes,” said an official.
The Centre has also considered offering tariff rate quotas on gold purchases from the US. India levies 30% import tariff on cherries and pecan nuts.
Assistant US trade representative for South and Central Asia Brendan Lynch is in India to formally start the negotiations on the pact and will hold discussions with trade negotiators in the next three days. The agreement would be finalised in two phases and the first phase is expected to focus on issues pertaining to goods trade.
Though the US imposes low duties on its imports, its regulatory requirements remain a major hurdle for Indian farmers and food producers. New Delhi wants easier sanitary and phytosanitary measures and technical barriers to trade. These measures deal with technical regulations, standards, testing and certification procedures, food safety, and animal and plant health standards.
“India imposes around 2.5% duty on feedstock and can offer tariff concessions on ethane imports as we are energy deficient,” said an industry representative.
Delhi-based think tank Global Trade Research Institute (GTRI) said India must remain focused on negotiating only industrial goods tariffs and eliminate tariffs on 90% of industrial tariff lines, if the US does the same.
It said India should not engage in discussions around intellectual property, digital trade, agricultural tariffs or subsidies, or government procurement. “India’s recent unilateral reduction of tariffs on US products like whiskey and motorcycles has gone unacknowledged by the US side,” it said.
It said India must be cautious while negotiating the proposed BTA with the US since the absence of a ‘Fast Track Trade Authority’ (FTTA) in America makes any pact vulnerable to Congressional changes.
FTTA is a special power that the US Congress gives to the President to help speed up and simplify trade negotiations with other countries. However, the US currently lacks FTTA.
Content Source: economictimes.indiatimes.com