India and the United States are approaching a deadline for trade negotiations, with disagreements still present in sectors such as automobiles, steel, and agriculture. According to Indian media reports on the 4th, India plans to impose retaliatory tariffs on certain American products. Pyuush Goyal, the Minister of Commerce and Industry, made a firm stance that only mutual benefits can lead to an agreement.
The so-called “reciprocity tariff” 90-day moratorium set by the US is set to end on July 9th, yet India and the US are still engaged in trade negotiations. Reuters reported that the current disputes between India and the US include differences over automobiles and their components, steel, and agricultural products. On one hand, India is reluctant to open its agricultural and dairy markets, while on the other, it demands that the tariff rates on Indian goods be lower than those imposed on Vietnam and other countries.
A delegation led by Chief Negotiator Rajesh Agrawal concluded another round of trade negotiations with the US on the 4th. The Hindustan Times quoted an Indian official saying that the Indian delegation had returned from Washington, with some issues still needing resolution in the fields of agriculture and automobiles.
Despite these disagreements, the officials mentioned that negotiations have now reached the final stage and are expected to release a statement before July 9th.
According to Today’s India report on the 5th, the US has requested India to open up its agricultural market, especially to accept genetically modified corn, soybeans, and other agricultural products, but India has refused on the grounds of “food security and impact on rural livelihoods.”
The Indian Express quoted an Indian official on the 5th saying that India’s core interest lies in ensuring continuous market access for labor-intensive products like textiles and footwear, among others. Additionally, the US is unwilling to make concessions in the steel sector to any country.
On February 13th, US President Donald Trump (right) attended a meeting with visiting Indian Prime Minister Modi at the White House in Washington. Photo by Hu Yousong, Xinhua News Agency.
Indian Minister: National Interests Take Precedence
As reported by Indian media on the 4th, India has informed the World Trade Organization about its intention to impose retaliatory tariffs on certain American products in response to the measures taken by the US to impose tariffs on automobiles and their components imported from India.
The report stated that India indicated in its notification that the US’s imposition of tariffs violated the rules of the World Trade Organization and had a significant impact on bilateral trade. India has suspended tariff concessions equivalent to those imposed by the World Trade Organization and retains the right to adjust the target product list and tariff levels.
On April 2nd, 2022, Indian Commerce and Industry Minister Pyuush Goyal participated in a video signing ceremony in New Delhi. Photo by Xinhua News Agency/Fengxin.
On the 4th, Pyuush Goyal stated that the trade agreement India is prepared to reach must meet its national interests, not just to achieve an agreement ahead of the deadline.
Goyal said, “Only under mutual benefit can a free trade agreement be reached. Remember, national interests always take precedence.” (Liu Jiang, Wu Yue)