India’s high-level trade delegation, led by chief negotiator Rajesh Agrawal, returned from Washington after a week-long round of talks with US officials without reaching a final agreement on key issues, especially the sensitive matter of market access for American agricultural and dairy products.
These products remain a major sticking point, as India considers them critical to the livelihood of its small farmers.
The Indian team was in the US from June 26 to July 2, aiming to finalise an interim trade agreement that could help avoid a hike in tariffs on Indian exports.
The US is pushing for wider entry of its agricultural and dairy goods into the Indian market, while India is seeking relief from the 26 percent tariff increase announced by President Donald Trump, which is set to take effect on July 9. India is also negotiating for tariff reductions on its labour-intensive products such as textiles, leather and footwear.
Despite the lack of a breakthrough, officials see a possibility that an agreement may still be reached at the highest political level before the tariff hike deadline.
Meanwhile, the US administration has said it will begin informing trade partners about their tariff rates, with letters expected to go out starting Friday. President Trump has said that around 10 to 12 countries will be notified first, and that the new tariff rates could range from 10 to 70 percent depending on the country.
The US has already signed several trade agreements in recent weeks, including with Vietnam and China. President Trump had earlier indicated that a potential deal with India was under discussion, which would allow greater access for American goods in the Indian market.
