India‐US 'Mini Trade Deal' In 48 Hours? Can The Two Nations Reach A Common Ground Before July 9 Tariff Deadline?

(MENAFN- Live Mint) India and the United States will likely finalise interim or a mini trade deal within the next 48 hours, with negotiations between the two nations underway in Washington DC, news reports quoting sources said on July 3.

The discussions between the Indian and US trade teams are in their 'last leg,' with the Indian team extending its stay in Washington last week to sort out differences. The two countries expect to arrive at a mini deal before July 9, the day the pause on US tariffs is set to be lifted.

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'Both sides have dug in their heels over a number of issues, including Washington's demand that India open its market to genetically modified crops - a long-standing red line for New Delhi due to risks to its farmers," NDTV said in a report saying that the 'mini trade deal' would be finalised within 48 hours.

The reports said the US wants greater market access to the Indian agricultural and dairy sectors. However, these sectors are likely to be excluded from the proposed deal due to concerns over rural livelihoods and food safety.

India, for its part, wants tariff concessions on its labour-intensive exports, such as footwear, garments, and leather, which create major jobs.

A report in News18 said India has made it clear that it cannot completely open up its dairy sector, which serves as the economic backbone for millions of Indian farmers.

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External Affairs Minister S Jaishankar had earlier expressed hope that trade negotiations between India and the US would reach a 'successful conclusion' and that the two nations could find a 'meeting ground.'

President Donald Trump also expressed optimism about finalising a trade agreement with India that could lead to significantly lower tariffs for American goods, provided New Delhi takes steps to ease market access for US companies.

Trump had earlier said that India appeared willing to reduce trade barriers, potentially clearing the path for an agreement ahead of a looming July 9 tariff deadline.

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“Right now, India doesn't accept anybody in. I think India is going to do that. If they do, we're going to have a deal for less-much less-tariffs," Trump said, referring to the 26 per cent reciprocal tariffs he announced on April 2, which are currently suspended pending trade negotiations.

The focus of the deal, however, has narrowed to reciprocal tariff reductions or removals, as officials have called on both nations to prioritise lowering overall duty barriers, NDTV said.

India-US Trade Deal

India and the US have been negotiating over a Bilateral Trade Agreement (BTA) before the deadline for the suspended 26 per cent reciprocal tariffs is lifted

These reciprocal tariffs on India imposed Trump administration on April 2, were temporarily suspended for 90 days but will automatically resume if no agreement is reached.

If they do, we're going to have a deal for less-much less-tariffs.

(With agency inputs)

Key Takeaways

• The US aims for reduced tariffs in exchange for greater access to Indian markets.
• India insists on protecting its agricultural sectors from certain US demands.
• The negotiations are critical for both nations to avoid resuming previously suspended tariffs.

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