Latest news with #TradePromotionAuthority
Economic Times
2 days ago
- Business
- Economic Times
No new tariffs after Bilateral Trade Agreement: India wants US assurance
India seeks assurance from the US in the finalized bilateral trade agreement (BTA) to prevent additional tariffs by the Trump administration. India requests stability in tariffs, concessions for labor-intensive sectors, and a mechanism to address potential tariff increases. Both countries aim to finalize the BTA before the deadline, with India emphasizing the need for sustained trade advantages. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India wants an assurance from the US that no additional tariffs will be imposed by the Donald Trump administration once the bilateral trade agreement (BTA) is finalised, said people familiar with the matter. The deal is in the final stages of negotiation and both sides are hopeful of reaching accord quickly. India has sought concessions for labour-intensive sectors such as leather and textiles. 'We have put everything on the table,' said one of the persons, adding that India wants stability in tariffs once a deal is rolled agreements typically include renegotiation clauses, or compensation from the partner effecting a tariff increase. India would like the pact to provide for such a mechanism. 'This would ensure the agreement is ring-fenced from prospective changes,' said another person. The US President on April 2 announced a reciprocal tariff of 26% on goods imports from India as part of its trade levies all over the tariffs were paused for 90 days until July 9. However, the baseline tariff of 10% remains in force. India and the US are looking to finalise the BTA ahead of the assurance from Washington is required to ensure tariffs negotiated within the framework of the trade deal remain ring-fenced from any changes effected later by the US, said a third official detailing India's concern. There is also Trump's mercurial experts are agreed on the need for such a clause. 'The BTA should be timebound and not in perpetuity,' said an expert on trade issues. 'India must insist on a clawback provision — that it will withdraw benefits if the US raises tariffs or goes back on any of its commitments.'Officials said Washington has to find a way to reduce tariffs as New Delhi has sought concessions for sectors such as textiles and leather, as mentioned above. The Trump administration currently requires approval from the US Congress to lower levy below most favoured nation (MFN) rates, but it does have the authority to scrap reciprocal tariffs.'We want preferential and sustained trade advantages and have left it to the US to decide the route it takes to reduce its tariff barriers—whether through the Trade Promotion Authority or by seeking Congressional approval,' said one of the officials cited earlier. The government is also monitoring the impact of the 50% tariffs on steel and aluminium and the 25% tariffs on auto. While the auto components sector doesn't expect a big dent for now, there may be an impact if the tariffs persist. According to the official quoted, India will pursue a concession, if others get sides have had several rounds of discussions on the proposed trade deal and are hopeful of concluding at least an early harvest deal. 'We are working on the early tranche, and there is a date (July 9), before which we would like to conclude this. The progress is good,' commerce secretary Sunil Barthwal said on Monday.A US trade team is in India last week to firm up the contours. India has made it clear that any meaningful expansion in bilateral trade will require a significant reduction in US tariffs. Both sides aim to more than double such trade to $500 billion by a Delhi-based trade expert cautioned, 'India should rethink its proposed BTA with the US. The US has a history of incomplete trade deals, such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. It has retracted its WTO commitments also. Moreover, the future of the Indo-Pacific Economic Framework for Prosperity hangs in the balance with the US-China trade deal.'
The Hindu
2 days ago
- Business
- The Hindu
Goyal optimistic about signing first tranche of U.S. trade deal before July 9
As the clock ticks towards U.S. President Donald Trump's 'reciprocal tariffs' to kick in on July 9, Commerce Minister Piyush Goyal has expressed optimism that India and the U.S. could sign a preliminary or early tranche of a larger trade deal before that date, though he stopped short of confirming a deal would be signed. 'We are in continuous dialogue. I have always been an optimist,' Mr Goyal said in an interview with The Hindu on the fringes of a conference organized by the India Global Forum 2025 in London. Also Read | India-U.S. trade deal faces delays, original fall deadline back on the table 'I'm very confident that, given that the US and India are very friendly countries, trusted partners, both wanting to have resilient, reliable, trusted supply chains, both vibrant democracies, we will be able to come up with a win-win for the businesses of both countries,' Mr Goyal added. Failure to sign such a deal would , as things stand, would result in Indian goods entering the U.S. being tariffed at 26% starting in early July. Also Read | What is the significance of the India-U.K. free trade agreement? Mr Goyal did not comment on whether a deal on the sensitive dairy and agricultural goods sectors would form part of the preliminary tranche of the Bilateral Trade Agreement (BTA) under discussion with the U.S. 'I think negotiations are best left to the negotiators and the negotiating table. We will, of course, inform the media at the right time,' he said. Mr. Goyal also did not want to comment on the impact of the U.S.'s Trade Promotion Authority, which is a process in the U.S. Congress to delegate authority to the U.S. President to negotiate trade deals, including deals that offer below Most Favoured Nation (MFN) tariff rates to some trading partners of the U.S. Earlier, Mr Goyal had participated in a moderated discussion with his U.K. counterpart, Business and Trade Secretary Jonathan Reynolds. The two countries had announced a free trade agreement on May 6. Mr Goyal said the UK and India were successful in concluding a deal because the sides had agreed to be sensitive to one another's concerns, setting aside issues that could not be negotiated easily. On the India-EU trade talks, Mr Goyal said the sides were looking to conclude a trade deal by the end of this calendar year, when asked whether they would announce a full-scale trade deal or an interim agreement first. 'There's that famous English phrase…since we are in Great Britain …'the air is pregnant with possibilities', he said adding he did not know what size and shape the agreement would have. On weather the Trump administration's return to the White House had impacted the speed and direction of India's trade talks with the E.U., Mr Goyal suggested that third parties did not impact bilateral deals. Last week the E.U.'s foreign minister , Kaja Kallas, had said at a joint press conference with External Affairs Minister S Jaishankar that the E.U. was a 'reliable, predictable and credible partner for India'. Countries have been seeking to recalibrate their relationship with the U.S. since the return of U.S. President Donald Trump and his 'America First' philosophy to the White House. 'I don't think there's any impact of any other situation on a negotiation between two countries, because these negotiations are not a short term arrangement. These are like long-term marriages you are negotiating after crystal-gazing … 25 years, 50 years, into the future,' Mr Goyal said. India wants WTO strengthened On the relevance of the World Trade Organization given the change in the U.S. administration and its retrenchment from multilateralism, Mr Goyal said the world trade body had an 'important' role to play and that India believed 'very strongly' in multilateralism. '[ India ] believes we have to strengthen the WTO over the next few years through dialogue and discussions and will continue to play an increasingly important role to promote multilateralism,' he said. Tata Steel Not Discussed with the UK Mr Goyal also said that India had not made an intervention with the U.K. on behalf of Tata Steel which owns the Port Talbot steel plant in south Wales. The plant has had to import raw material from India and Europe following the closure of its blast furnace last year as it prepares to operationalize an electric-arc furnace in 2027. This may mean it runs afoul of the U.S.'s rules on inputs to qualify for any tariff reductions that the U.K. and U.S. agree to. The Trump administration has threatened to fully or partially maintain tariffs of 25% on British steel unless the U.K. provides guarantees on Tata Steel's inputs, as per a report in the Guardian. 'That, the U.K., has to negotiate with the U.S.,' Mr Goyal said.
Time of India
4 days ago
- Business
- Time of India
India Wants US' Word: No More Tariff Post-BTA
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Epaper Tired of too many ads? Remove Ads India wants an assurance from the US that no additional tariffs will be imposed by the Donald Trump administration once the bilateral trade agreement (BTA) is finalised, said people familiar with the matter. The deal is in the final stages of negotiation and both sides are hopeful of reaching accord quickly. India has sought concessions for labour-intensive sectors such as leather and textiles. 'We have put everything on the table,' said one of the persons, adding that India wants stability in tariffs once a deal is rolled agreements typically include renegotiation clauses, or compensation from the partner effecting a tariff increase. India would like the pact to provide for such a mechanism. 'This would ensure the agreement is ringfenced from prospective changes,' said another US President on April 2 announced a reciprocal tariff of 26% on goods imports from India as part of its trade levies all over the world. These tariffs were paused for 90 days until July 9. However, the baseline tariff of 10% remains in force. India and the US are looking to finalise the BTA ahead of the assurance from Washington is required to ensure tariffs negotiated within the framework of the trade deal remain ringfenced from any changes effected later by the US, said a third official detailing India's is also Trump's mercurial experts are agreed on the need for such a clause. 'The BTA should be timebound and not in perpetuity,' said an expert on trade issues. 'India must insist on a clawback provision — that it will withdraw benefits if the US raises tariffs or goes back on any of its commitments.'Officials said Washington has to find a way to reduce tariffs as New Delhi has sought concessions for sectors such as textiles and leather, as mentioned Trump administration currently requires approval from the US Congress to lower levy below most favoured nation (MFN) rates, but it does have the authority to scrap reciprocal tariffs.'We want preferential and sustained trade advantages and have left it to the US to decide the route it takes to reduce its tariff barriers—whether through the Trade Promotion Authority or by seeking Congressional approval,' said one of the officials cited government is also monitoring the impact of the 50% tariffs on steel and aluminium and the 25% tariffs on auto. While the auto components sector doesn't expect a big dent for now, there may be an impact if the tariffs to the official quoted, India will pursue a concession, if others get sides have had several rounds of discussions on the proposed trade deal and are hopeful of concluding at least an early harvest deal. 'We are working on the early tranche, and there is a date (July 9), before which we would like to conclude this. The progress is good,' commerce secretary Sunil Barthwal said on Monday.A US trade team is in India last week to firm up the has made it clear that any meaningful expansion in bilateral trade will require a significant reduction in US tariffs. Both sides aim to more than double such trade to $500 billion by a Delhi-based trade expert cautioned, 'India should rethink its proposed BTA with the US. The US has a history of incomplete trade deals, such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. It has retracted its WTO commitments also. Moreover, the future of the Indo-Pacific Economic Framework for Prosperity hangs in the balance with the US-China trade deal.'
Time of India
4 days ago
- Business
- Time of India
No new tariffs after Bilateral Trade Agreement: India wants US assurance
India wants an assurance from the US that no additional tariffs will be imposed by the Donald Trump administration once the bilateral trade agreement (BTA) is finalised, said people familiar with the matter. The deal is in the final stages of negotiation and both sides are hopeful of reaching accord quickly. India has sought concessions for labour-intensive sectors such as leather and textiles. 'We have put everything on the table,' said one of the persons, adding that India wants stability in tariffs once a deal is rolled out. Trade agreements typically include renegotiation clauses, or compensation from the partner effecting a tariff increase. India would like the pact to provide for such a mechanism. 'This would ensure the agreement is ring-fenced from prospective changes,' said another person. The US President on April 2 announced a reciprocal tariff of 26% on goods imports from India as part of its trade levies all over the world. These tariffs were paused for 90 days until July 9. However, the baseline tariff of 10% remains in force. India and the US are looking to finalise the BTA ahead of the deadline. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo Timebound BTA Needed An assurance from Washington is required to ensure tariffs negotiated within the framework of the trade deal remain ring-fenced from any changes effected later by the US, said a third official detailing India's concern. There is also Trump's mercurial nature. Live Events Independent experts are agreed on the need for such a clause. 'The BTA should be timebound and not in perpetuity,' said an expert on trade issues. 'India must insist on a clawback provision — that it will withdraw benefits if the US raises tariffs or goes back on any of its commitments.' Negotiations Officials said Washington has to find a way to reduce tariffs as New Delhi has sought concessions for sectors such as textiles and leather, as mentioned above. The Trump administration currently requires approval from the US Congress to lower levy below most favoured nation (MFN) rates, but it does have the authority to scrap reciprocal tariffs. 'We want preferential and sustained trade advantages and have left it to the US to decide the route it takes to reduce its tariff barriers—whether through the Trade Promotion Authority or by seeking Congressional approval,' said one of the officials cited earlier. The government is also monitoring the impact of the 50% tariffs on steel and aluminium and the 25% tariffs on auto. While the auto components sector doesn't expect a big dent for now, there may be an impact if the tariffs persist. According to the official quoted, India will pursue a concession, if others get one. Early Harvest Both sides have had several rounds of discussions on the proposed trade deal and are hopeful of concluding at least an early harvest deal. 'We are working on the early tranche, and there is a date (July 9), before which we would like to conclude this. The progress is good,' commerce secretary Sunil Barthwal said on Monday. A US trade team is in India last week to firm up the contours. India has made it clear that any meaningful expansion in bilateral trade will require a significant reduction in US tariffs. Both sides aim to more than double such trade to $500 billion by 2030. However, a Delhi-based trade expert cautioned, 'India should rethink its proposed BTA with the US. The US has a history of incomplete trade deals, such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. It has retracted its WTO commitments also. Moreover, the future of the Indo-Pacific Economic Framework for Prosperity hangs in the balance with the US-China trade deal.'
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Business Standard
4 days ago
- Business
- Business Standard
India aims to finalise early tranche of US trade pact before July 9
India and the United States (US) are looking to agree on an early tranche of the trade pact before July 9, although the absence of the American Fast Track Trade Authority — Trade Promotion Authority (TPA) — may prolong discussions between both sides. "We are working on the early tranche and as you are aware that there is a date (July 9), before that we would like to conclude this early tranche… We also visited the US twice. The US team also came here twice. There is good progress and we are hopeful that this will be done within the timeline," Commerce Secretary Sunil Barthwal told reporters. The next date of in-person negotiations on the BTA and its initial tranche is yet to be decided, but both sides are engaging virtually without a break. However, commerce department officials said that TPA is America's internal policy tool, and it is up to the US authorities to decide how to navigate its local regulations for the trade agreement with India. The US Fast Track Trade Authority is a special mechanism that allows the American President to negotiate trade agreements and present them to Congress for an up-or-down vote, without amendments or procedural delays. According to experts, the authority has lapsed, and without this authority, any trade agreement negotiated by the US President is exposed to Congressional scrutiny, possible amendments, delays, or outright rejection. Currently, India is seeking a binding commitment from the US on pre-April 2 tariff levels for labour-intensive sectors as part of an early tranche of the proposed bilateral trade agreement (BTA). This would involve doing away with the universal 10 per cent tariff imposed by the Donald Trump administration. However, the US has told India that it currently does not have the Congressional mandate to make such tariff cuts. Both countries have committed to signing a mutually beneficial BTA by this autumn, though India is pushing for an early tranche to avoid a 26 per cent reciprocal tariff, scheduled to kick in from July 9.
