Both countries conclude ministerial-level talks on interim trade agreement ahead of July tariff deadline
India and the United States on Wednesday concluded two-day ministerial-level talks on the proposed phase one of their bilateral trade agreement (BTA), with the two sides reviewing progress and discussing ways to finalize an interim agreement ahead of the key US tariff deadline next month.Talks were held between Commerce and Industry Minister Piyush Goyal and US Trade Representative (USTR) Jamieson Greer in New Delhi.“This morning concluded a series of meetings with @USTradeRep Ambassador Jamison Greer and his delegation. We reviewed the progress of the ongoing India-US trade discussions and explored ways to further deepen our economic partnership,” Goyal said in a post on social media.“I appreciate Ambassador Greer’s leadership and the continued efforts of both teams in moving our discussions forward in a constructive and forward-looking manner,” he said.
Focus on interim deal before July 24
According to the Commerce Ministry, the discussions focused on ways to conclude an interim trade agreement as an important milestone towards a comprehensive bilateral trade agreement.The ministry said the two sides reviewed key elements of the proposed agreement, including expanding market access, digital trade and reducing non-tariff barriers, PTI reported.The talks assume significance as the temporary 10 per cent tariff imposed by the US on imports from all trading partners on February 24 is set to expire on July 24.
Trade talks gain momentum
The latest discussions come amid new momentum in trade talks between the two countries.Greer’s visit follows a meeting between Prime Minister Narendra Modi and US President Donald Trump on the sidelines of the G7 summit in France on June 17.Both countries had announced the framework for the first phase of BTA in February 2025. However, subsequent changes in US tariff policy led both sides to reconsider some aspects of the proposed agreement.The US Embassy in India had earlier said the talks were aimed at advancing an interim agreement that would benefit both economies and deepen commercial ties.
Major issues under discussion
India is seeking favorable tariff treatment for its exports after changes in US trade policy have reduced the expected benefits over competing economies like Vietnam and other ASEAN countries.The discussions also include tariff cuts on several US agricultural and industrial products, including tree nuts, fruits, soybean oil, wine and spirits.India has proposed large-scale purchases of US goods, including energy products, aircraft, technology equipment, precious metals and coking coal over the next five years.
Trade relations remain strong
The United States remains India’s second largest trading partner in 2025-26.India’s exports to the US rose 0.92 per cent to $87.3 billion during the fiscal year, while imports rose 15.95 per cent to $52.9 billion, narrowing India’s trade surplus to $34.4 billion from $40.89 billion a year ago.As the July 24 tariff deadline approaches, the two sides are expected to continue talks in an effort to conclude an interim agreement, which officials see as a step toward a broader and more comprehensive trade agreement.
