India has started working on the terms of reference (ToR) for a potential bilateral trade agreement (BTA) with the US as the two sides aim to conclude the first tranche of negotiations by fall this year. The terms of reference would detail the purpose and structure of the negotiations.
The commerce and industry ministry has also sought wish lists of various industries and tariff concessions they expect from Washington under the pact. "Inputs have been sought from various stakeholders as both sides aim to increase exports," said an official.
US President Donald Trump claimed Friday that India will significantly reduce tariffs on American imports, saying New Delhi imposed "massive" trade barriers and that "somebody is finally exposing them for what they have done".
The issue of tariffs and the April 2 deadline for likely punitive measures figured during commerce and industry minister Piyush Goyal's recent US visit. "The ministry has sought details of the products where Indian industry wants market access in the US and where duties can be reduced," said an industry representative.
The domestic industry has indicated lower duties for American pecan nuts, cranberries and blueberries. However, in textiles, the Confederation of Indian Textile Industry (CITI) is pushing for a 'zero-for-zero' tariff agreement with the US for textile and apparel trade.
"A zero-duty structure would create a level playing field for Indian exporters against Vietnam, which benefits from duty concessions. With reduced tariffs, India's textile and apparel exports to the US could surge to $16 billion within the next three years," CITI said.
The US imposes import duties of 2.5-7.4% on Indian apparel while India's duties range from 5% to 12% depending on the price, according to the Apparel Export Promotion Council.
India remains dependent on cotton imports from the US. A duty-free access mechanism with quota safeguards could ensure a balanced trade approach, according to the textile association.
Source Name : Economic Times