Indian and US officials are set to commence discussions on a proposed bilateral trade agreement (BTA) in Washington, starting Wednesday. The aim is to resolve outstanding issues and boost negotiations between the two nations. The US anticipates that this agreement will unlock new markets for American goods and generate opportunities for workers, farmers, and entrepreneurs in both countries.
The US Trade Representative aims to enhance market access, lower tariffs and non-tariff barriers, and secure additional commitments for long-term benefits. A key concern for the US is the widening trade deficit with India, which stood at USD 45.7 billion in 2024. The BTA is seen as a means to address this deficit.
Both countries have finalized the terms of reference (ToR) for the agreement, covering approximately 19 chapters, including tariffs, non-tariff barriers, and customs facilitation. These three-day talks are particularly significant, given the US has temporarily suspended tariff impositions for 90 days. The talks are expected to pave the way for the formal launch of BTA negotiations.
Rajesh Agrawal, Additional Secretary in the Department of Commerce, will lead the Indian team for these initial in-person discussions. Commerce Secretary Sunil Barthwal expressed India's intention to expedite the negotiation process with the US during an April 15 statement. Both sides aim to finalize the first phase of the agreement by the fall, targeting to increase bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.
The successful implementation of the BTA could significantly enhance economic cooperation between the US and India. It promises to foster increased trade, investment, and job creation in both countries. The global community will be watching closely to see how these negotiations progress and the resulting impact on the international trade landscape.