India has outlined key demands in its ongoing trade negotiations with the United States, including preferential tariff treatment and assurances against future tariff hikes, as both countries work towards finalising an interim trade agreement, a trade official said on Monday.
Key Demands in Trade Talks
India is also seeking clarity on proposed US tariff measures linked to allegations of forced labour and concerns over excess industrial capacity in sectors such as textiles, which Washington says are hurting American industry. "Once we have that tariff, we can finalise a trade deal with the US. But obviously the rate has to be competitive with direct competitors," the official, who spoke on condition of anonymity, told Reuters.
The official said India would seek assurances from the US that it would not be subjected to additional tariffs in the future after the trade deal comes into force.
Timeline for Agreement
This comes amid efforts by New Delhi and Washington to conclude the first tranche of a bilateral trade agreement, which Commerce and Industry Minister Piyush Goyal last week said could be finalised by mid-July. India and the US had reached an initial understanding on a trade deal in February. However, negotiations slowed after US President Donald Trump's sweeping tariff measures were struck down by the US Supreme Court.
Proposed Tariffs
According to the official, the US has since proposed an additional 12.5 per cent tariff on imports from India and several other countries over concerns related to the use of forced labour. Washington is also considering a separate tariff on Indian exports, citing excess capacity in industries such as textiles and alleging that Indian shipments are adversely affecting domestic US manufacturers.
Recent Talks
Bilateral trade talks gathered pace last week when a US delegation led by Assistant US Trade Representative for South and Central Asia Brendan Lynch held three days of discussions with Indian trade officials in New Delhi.
