The conversations for the Bilateral Commercial Agreement of Profiles are gaining impulse, with the first three -day negotiations in person among the main negotiators of the two countries scheduled for the beginning of April 23 in Washington.
The visit is significant since India is exploring the possibility that an early stretch converts the 90 -day rate pause window. The two parties have also finished the terms of references (Tor) for the agreement.
A list of questions and answers (questions and answers) to explain the importance of this visit and the implications of high rates in China for India:
Q. What is an ‘early stretch’?
A. United States and India have addressed a bilateral commercial agreement (BTA), which is a type of free trade agreement. The two have decided to conclude the BTA of proposition in two sections or phases. They have fixed a deadline to conclude the first phase for autumn (September-October) or this year. However, taking advantage of the 90 -day tariff pause window, India is exploring the opportunity to discuss the “early section.”
Under this, both parties can consider discussing issues such as greater access to the market for a limited number of goods (unlike the maximum number of products covered in a complete FTA) and reduce non -tariff barriers. This could prepare the scenario for more complex negotiations (such as issues such as government acquisition and digital trade) in subsequent phases. However, the early stretch is possible only if it results in a result of win-win for both.
Q. Has India negotiated free trade agreements in phases before?
A. Yes. India has made this child a pact with Australia. The Economic Cooperation and the Commercial Agreement (ECTA) of India-Australia entered into force on December 29, 2022. They are now negotiating a comprehensive commercial pact by expanding the scope of ECTA.
Q. What is the 90 -day rate pause window announced by the United States?
A. The president of the United States, Donald Trump, announced reciprocal tariffs (or import tariffs) in several countries, including India and China, on April 2. However, on April 9, he announced a 90 -day suspension of these rates until July 9 of this year, except for those in China and Hong Kong, since approximately 75 countries approached the United States for exchange agreements. China faces 245 percent taxes on their assets that enter the United States.
However, the 10 percent basal rate imposed on countries on April 2 remains in force, in addition to 25 percent tasks on steel, aluminum and automotive components.
Q. What are the exceptions in US tariffs?
A. semiconductors, pharmaceutical products and certain energy products are in the exemption category. Earlier this month, the Trump administration expanded this category by including smartphones, computers and certain other electronic imported mainly from China.
Q. Why is BTA’s early stretch or a complete trade pact with the United States important for India?
R. will help protect India’s exports to the United States from possible US tariffs.
Q. What are tors in the BTA India-US?
A. These include mainly scope and objectives of the commercial pact. According to the sources, it would cover around 19 chapters, such as rates, non -tariff barriers, goods, rules of origin and customs facilitation.
Q. How many meetings have happened so far in the agreement?
A. The BTA was announced to visit Prime Minister Narendra Modi to Washington, DC on February 13, 2025.
The Minister of Commerce and Industry, Piyush Goyal, visited Washington from March 4 to 6, a duration of what he with his American counterparts-United States trade in the United States Jamieson Greer and Commerce Secretary Howard Lutnick.
Brendan Lynch, American trade assistant representative for Asia Sur and Central, was in India from March 25 to 29 for commercial discussions with Indian officials. In that deliberation, they decided to celebrate Virtual and the commitment of the sector level next week. Now the Indian team is visiting the United States.
Q. What are the key elements of the BTA?
A. The Covenant has aimed more than duplicating the bilateral trade of goods and services to USD 500 billion by 2030 from the current USD 191 billion.
While the United States is analyzing service concessions in sectors such as certain industrial products, cars (participularly electric vehicles), wines, petrochemical products, dairy and agricultural items such as apple, tree nuts and alfalfa hay; India can analyze work cuts for labor intensive sectors such as clothing, textiles, gems and jewelry, leather, plastics, chemicals, oil seeds, shrimp and horticulture products.
Q: What does the Joint Declaration of India-US say on February 14 on the BTA?
A. As the ambition of $ 500 billion requires new terms of fair trade, the two parties announced plans to negotiate the first section of a beneficial and multiple mutual BTA for the autumn of 2025. The leaders promised to ensure that the opportunities for commercial relations for the military association accelerated trade and technology).
To advance in this innovative and high range BTA, the two will adopt an integrated approach to strengthen and deepen bilateral trade throughout the goods and services sector, and will work on market access, reducing the rate and non -rate.
The United States welcomed India’s measures to reduce tariffs on products of interest in the United States in Bourbon areas, motorcycles, ICT products and metals, as well as measures to improve market access for US agricultural products, such as alfalfa hay and medal device.
Q. What is the meaning or integration of the deepening supply chain?
A. India and the United States seek to improve collaboration in the construction of resistant supply chains in areas such as critical minerals, semiconductors and pharmaceutical products. It will help both parties to diversify their supply chains and reduce the dependence of some countries.
Posted on April 20, 2025