The two countries have been negotiating a bilateral trade agreement (BTA) since March with an aim to more than double the bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 billion.So far five rounds of talks have been completed.For the sixth round, the US team is visiting India from August 25.They are aiming to conclude the first phase of the agreement by fall (October-November) this year.The two sides are also looking at an interim trade deal before the BTA.The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, and agri goods, dairy items, apples, tree nuts, and genetically modified crops.On the other hand, India is seeking the removal of additional tariffs.It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto (25 per cent) sectors.Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties.The country is also seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.When asked about the implications of the tariff announcement on ongoing negotiations for the pact, sources said the next round of talks are scheduled for August.”Let us wait and watch how things evolves. The ball is in the US court,” said one of the sources.On the quantum of penalty and the structure of the 25 per cent tariff, they said: “There is no clarity on that. we are waiting for the executive order of the US on this for the clarity.”US President Donald Trump is “frustrated” with the lack of progress on trade talks with India and feels that the 25 per cent tariff imposed on the country will “address and remedy” the situation, the White House economic adviser suggested on Wednesday.The commerce minister also said that in just over a decade, India has rapidly transformed from being one of the fragile five to the fastest growing major economy in the world and it is also widely expected that India will become the third largest economy in a few years.Today, he said, international institutions and economists see India as the bright spot in the global economy as the country is contributing to almost 16 per cent of global growth.Reacting to Goyal’s remarks, Congress general secretary in-charge communications Jairam Ramesh called it a “non-statement.””Today the Commerce Minister made a non-statement on President Trump and the US tariff issue in both Houses of the Parliament. All he engaged in was totally misplaced self-congratulation,” he said.The real issues thrown up by the failure to clinch a trade deal with the US, the imposition of a 25 per cent tariff on Indian imports by the US, and additional penalties for engaging in trade with Russia and Iran were hardly touched upon, the Congress leader said.
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