Focus on Market Access and Tariff Disputes
Key discussion points in the meetings included tariff reductions, particularly lowering non-tariff barriers, and providing access to new markets for agri-industrial products. India demanded the removal of the emergency 10% baseline tariff imposed by the Trump administration, while the US countered that similar duties apply to Britain.Digital Trade and Customs Reform
Sources stated that significant discussions also focused on boosting digital trade and simplifying customs procedures. Both countries agreed to take concrete steps to enhance transparency in trade processes and facilitate digital transactions.Disagreement on Food and Agricultural Products
India resisted US demands regarding wheat, dairy, and maize imports but offered tariff concessions on high-value US products like almonds, pistachios, and walnuts. This balance considers India’s domestic food security policies and trade interests.Increased Partnership in Energy and Defence
New Delhi assured the US of increased imports of LNG, crude oil, coal, and defence equipment in the coming years. This aims to deepen strategic and energy cooperation between the two nations.Agreement This Month?
A potential meeting between Prime Minister Modi and Donald Trump during the G7 summit in Canada is anticipated, with hopes of signing a preliminary agreement. The US side seeks this deal before the 26% tariff commitment expires to avoid domestic criticism.Simultaneous Negotiations with the European Union
While trade talks with the US were underway in New Delhi, Union Minister Piyush Goyal was simultaneously negotiating another major trade agreement with the European Union in Switzerland. India is working on a strategy to broaden its global trade network.A Step Towards Strengthening Strategic Partnership
A senior Commerce Ministry official stated after the talks: “These discussions were not limited to trade figures but also a step towards strengthening the strategic partnership. We are confident that the initial phase of the agreement will be completed soon.”New Recognition for Agricultural and Handloom Products
The Director General of the Federation of Indian Export Organisations (FIEO) stated: “If a balance is struck on tariff issues, India will gain new recognition for its agricultural and handloom products in a large market like the US.”India and US Collaboration Could Stabilise Global Supply Chains
The US India Business Council (USIBC) stated in a release: “The coming together of India and the US can stabilise global supply chains. We welcome the progress made towards this deal.”Future Expectations
The agreement could be signed during a potential meeting between Prime Minister Modi and Trump at the G7 summit. The next round of talks on a full-scale trade deal between the two countries could be scheduled for September–October. The India-US agreement will also impact EU–India trade talks, with the next meeting potentially in Switzerland in July. The response from the agricultural lobby and the MSME sector will determine the extent to which India proceeds with the agreement’s terms.
Side Angle: Alternative Perspectives or Human Element
Domestic farmer organisations and dairy unions have expressed concerns over US demands. The president of the National Farmers’ Federation stated: “If India opens up its wheat and milk markets, it will directly impact the livelihoods of small farmers.” Meanwhile, energy companies and importers in India have given positive signals about US supplies of LNG and crude oil, which could boost energy security. Furthermore, the tech startup sector is enthusiastic about the ease of digital trade. They believe this agreement will provide new direction to data flow and e-commerce.
