As India, US set roadmap for trade pact talks, US flags lack of reciprocity
This story was originally published at 08:52 IST on 22 April 2025
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NEW DELHI - India and the US have finalised the terms of reference to lay down a roadmap for negotiations on reciprocal tariffs, Ambassador Jamieson Greer, the US Trade Representative, said in a press statement, flagging that "there is a serious lack of reciprocity in trade relationship" with India. "The ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers," he said.
In their meeting on Monday, Prime Minister Narendra Modi and visiting US Vice President J.D. Vance finalised the terms of reference. India and the US had agreed on a Bilateral Trade Agreement during Modi's visit to Washington, D.C. in February, a trade deal that can help avoid the reciprocal tariffs announced by US President Donald Trump on Indian goods. The two countries are holding negotiations to seal a trade pact, and the first tranche of it is expected to be launched by fall this year, Finance Minister Nirmala Sitharaman confirmed on Monday.
There is a significant apprehension over the proposed US tariffs as the US is India's top export destination with a share of 19% in total outbound shipments in FY25. The US, which has raised concerns over the widening trade deficit with partner nations, and in an attempt to boost local manufacturing, announced sweeping tariffs on Apr. 2, including 26% on India. These tariffs were later suspended for 90 days till Jul. 9. With the US, India had a merchandise trade surplus of $41.18 billion in FY25. It was $35.32 billion in FY24, $27.7 billion in FY23, $32.85 billion in FY22, and $22.73 billion in FY21.
"India's constructive engagement so far has been welcomed and I look forward to creating new opportunities for workers, farmers, and entrepreneurs in both countries," Greer said in his statement.
To build on the negotations on the proposed trade deal in the 90-day tariff pause window, New Delhi's negotiating team is visiting Washington this week, with three-day meetings scheduled from Wednesday to iron out differences on certain issues before formally launching negotiations for the proposed India-US trade pact.
According to the US, the terms of reference outlines key areas of cooperation including increasing market access, reducing tariff and non-tariff barriers, and negotiating a robust set of additional commitments to ensure long-term benefits. End
US$1 = INR 85.13
Reported by Priyasmita Dutta
Edited by Vandana Hingorani
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