New Delhi, July 5: India and the United States are likely to sign an interim trade agreement before July 9. Both countries are working to sort out final details, although some important issues are still unresolved — especially in the agriculture and auto sectors.
The urgency comes as the US had earlier imposed high tariffs on Indian goods, which were temporarily suspended. That suspension will end on July 9. A trade deal would help avoid the return of these higher tariffs and improve trade relations.
India wants better access for its labour-intensive products like textiles, leather, and chemicals in the US market. On the other hand, the US is asking for lower import duties on its agricultural items, dairy products, and auto components.
However, India is firm in protecting its agriculture and dairy sectors. Finance Minister Nirmala Sitharaman has already said these are “red lines” that cannot be crossed.
Negotiators from both sides recently met in Washington and are now in the final stages of discussion. Commerce Minister Piyush Goyal has said that India will not rush into any deal unless it benefits both sides.
If signed, this interim deal will be a temporary solution. A full trade agreement could take more time and more negotiations.
The deal is expected to help both countries reduce trade tensions and open up new economic opportunities.