India and the US will resume talks on trade pact from April 20, the Centre announced on Wednesday, a day after President Donald Trump and Prime Minister Narendra Modi spoke over telephone in a renewed push to strengthen bilateral relations.
“The Indian team led by chief negotiator Darpan Jain will be visiting the US from April 20. The negotiating teams will be meeting in person after a gap of about 3–4 months. We are looking at finalising the legal agreement, which is a logical follow-up of the joint statement released on February 7,” commerce secretary Rajesh Agrawal said in Delhi.
The Indian side will look to rework the framework for the first phase of bilateral trade agreement (BTA) finalised in February in view of changes in the US tariff landscape. According to that framework, the US had agreed to reduce tariffs on India to 18 per cent from 50 per cent. Since then, the US Supreme Court shot down the sweeping ‘reciprocal tariff’.
After the legal setback, the US President imposed 10 per cent tariffs on all countries for 150 days from February 24 under Section 122 of Trade Act.
“Both sides will sit together and discuss how these issues need to be structured and addressed. India and the US will work together to finalise timelines and next steps as part of the ongoing engagement,” Agarwal added.
With the US Supreme Court robbing Trump administration from IEEPA tariff powers, all US trading partners are on the same boat with 10 per cent tariffs.
“So, the agreement will have to be recalibrated, redrafted,” a government source said, adding, “that amount of change will take place from their side”. India will look forward to the comparative advantage which it could get under the BTA in the changed circumstances.
“Every other country is now recalibrating its earlier agreement; we are also moving in that direction. We will have to have the trade-offs. So, the trade-off from the other side is something that we like to hear from them”, they added.
They pointed out that unlike countries like UK, India is yet to sign on the dotted lines. “We have got the option where we can right now change whatever needs to be changed,” the source said.
