Context:
A team of U.S. officials, led by Assistant Trade Representative Brendan Lynch, will visit New Delhi next week. The goal is to discuss and shape the proposed Bilateral Trade Agreement (BTA). Both sides aim to finalize the first tranche of the agreement by Fall 2025.
Key Highlights:
- The discussions are set to occur a week before reciprocal tariffs imposed by the U.S. take effect on April 2.
- India has submitted a “nonpaper” an informal discussion paper to convey New Delhi’s viewpoints and initial proposals.
- The U.S. is expected to respond to this nonpaper within this week.
- The nonpaper allows both sides to “test the waters” before official negotiations begin.
Discussion Points
- Tariff Reductions
- India has indicated willingness to reduce tariffs on several products, particularly in labour-intensive sectors like textiles and leather.
- U.S. Demands
- Pressure on India to reduce tariffs on cars and alcohol (current import tariffs on alcohol exceed 100%).
- Agriculture tariffs are also a key U.S. concern.
Timeline and Recent Developments
- The team’s visit follows Commerce and Industry Minister Piyush Goyal’s meeting with top U.S. officials, including USTR Jamieson Greer and Secretary of Commerce Howard Lutnick (held during March 4–6).
- Commerce Secretary Sunil Barthwal recently confirmed progress in trade talks.
Next Steps
- Once both countries agree on the contours of the deal, formal BTA negotiations will commence.
- Both sides are working toward building a “mutually beneficial” trade agreement by late 2025.
