US and India race to finalize a $500B trade pact amid tariff tensions
The US and India are holding key trade talks this week to finalise a new trade pact. A delegation led by Deputy Trade Representative Rick Switzer arrived in India for two days of negotiations. The discussions follow months of tension after the US imposed a 50% tariff on certain Indian imports.
The proposed agreement aims to more than double bilateral trade to USD 500 billion by 2030. Both sides are pushing for concessions, though disagreements remain over agricultural and industrial goods.
This marks the second US visit to India since the tariffs were introduced. The delegation includes Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, who serves as the chief negotiator for the pact.
US Trade Representative Jamieson Greer recently stated that Washington had received its 'best ever' offers from India on the proposed deal. However, India continues to resist concessions in the agricultural and dairy sectors, citing the need to protect farmers and small businesses.
American officials are pressing for reduced duties on US farm and industrial products. Meanwhile, Indian exporters and industries are waiting for a resolution that could lift the current 50% tariff on their goods entering the US market.
The talks focus on finding a balance that benefits both economies. A successful agreement would significantly expand trade but must address long-standing disputes over market access and tariffs.
The negotiations could ease trade barriers between the two nations. If finalised, the pact would boost economic ties and set new targets for future cooperation. The outcome will determine whether the US adjusts its tariffs and how India responds to demands for sector-specific concessions.
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