Expected to be a trade deal between India and America before July 9, agriculture and automobile
America The Indian party has returned from Washington after negotiating the interim trade agreement with. Giving this information, an official said that the agreement is likely to be finalized before 9 July. However, some issues in agriculture and automobile sectors still need to be resolved, so the discussion will continue. The Indian party is being led by the chief negotiator Rajesh Aggarwal. He is a special secretary in the Department of Commerce. The official said the negotiations are in the final stages and its findings are expected to be announced before 9 July. Let us tell you that on July 9, Donald is the last day of 90 days of ban imposed on counter -tariff by Trump.
India raises a 25 percent fee issue in the automobile sector
The official said, “The Indian team is back from Washington. The conversation will continue. There are some issues in agriculture and automobile areas that need to be resolved.” India has raised the issue of 25 percent fee in the automobile sector. It has taken up the matter in the Security Committee of the World Trade Organization (WTO). India has also told the WTO that in response to American tariffs on steel and aluminum, it has reserved the right to reply on selected American products.
America imports very few auto components from India
India has said in a letter sent to the World Trade Organization that on March 26, 2025, the US has adopted a measure as a 25 percent value increase on imports of some parts with passenger vehicles and light trucks to be imported in India. These measures on the vehicle Palparj will be applicable from May 3, 2025 for an unlimited period. Last year, the US imported $ 89 billion parts globally. It had a share of Mexico $ 36 billion, China’s $ 10.1 billion and India was only $ 2.2 billion.
Hard and challenging to give concession in agriculture
In the agriculture sector, the US wants concessions in fees on dairy products, apples, fruits obtained from trees and genetically modified crops. However, due to being a politically sensitive area, it will be difficult and challenging for India to give any concession in the agriculture sector. India has not opened the dairy sector for any trading partner all the free trade agreements (FTAs) so far. India has tightened its stand on giving fees concessions to US agriculture and dairy products.
Indian team was in Washington from 26 June
The Indian team was in Washington to negotiate an interim trade agreement with the US from 26 June to 2 July. This dialogue is important because the suspension of Trump’s counter duty ends on 9 July. Both sides are considering finalizing the dialogue before that. Let us tell you that on April 2, the US imposed an additional 26 percent counter -duty on Indian goods, but was suspended for 90 days. However, 10 percent of the original fee levied by the US is still applicable.
India wants a complete discount from 26 percent fee
India wants a complete discount from an additional 26 percent fee. America wants some industrial goods, vehicles, especially fees concessions on electric vehicles, wine and petrochemical products. On the other hand, India in the proposed trade agreement seeks fees for labor, gems and jewelery, leather items, apparel, plastic, chemicals, shrimp, oilseeds, grapes and bananas.
With PTI inputs
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