The United States assured India of a relative advantage over competing countries while finalising its tariff structure, as the two sides worked to conclude an interim trade agreement before the end of the current financial year.
A senior Commerce and Industry Ministry official said negotiations were under way and Washington had assured India that it would receive greater benefits than competing countries.
“India and the US are in discussions, and the US has assured us that we will receive greater benefits compared to competing countries,” the official said.
Commerce Secretary Rajesh Agrawal said a two-member US delegation visited India in the first week of November for talks on tariffs and trade concessions. The discussions made substantial progress on finalising the draft agreement, he said.
Agrawal said several unresolved issues had been settled and both sides had reached consensus in several areas. The chief negotiators were holding regular virtual discussions to resolve minor issues relating to the language of the agreement, he said.
Washington had imposed an additional 10 per cent ‘forced labour’ tariff on India, Indonesia, Malaysia, Pakistan and Sri Lanka after the joint statement issued by Prime Minister Narendra Modi and US President Donald Trump in February. The US was also examining excess production capacity in India and several other countries, which could lead to further tariffs.
The senior official said the assurance of preferential treatment took into account possible future tariffs. Both sides had also agreed that if either country changed tariff rates, the other could alter its commitments under the agreement. The provision was included in the February joint statement but was not usually part of India’s other trade agreements, the official said.
