Piyush Goyal to guide group of officers to Washington for commerce talks from Might 17

Commerce and Trade Minister Piyush Goyal will lead a group of senior Indian officers to Washington beginning Might 17 for discussions with their U.S. counterparts on the proposed bilateral commerce settlement (BTA), an official mentioned on Tuesday.

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In the course of the go to, Mr. Goyal will maintain conferences with U.S. Commerce Consultant (USTR) Jamieson Greer and U.S. Commerce Secretary Howard Lutnick on the settlement.

The four-day talks (Might 17-20) come in opposition to the backdrop of each nations exploring the opportunity of an interim commerce association in items to safe “early mutual wins” forward of finalising the primary section of the commerce settlement by fall (September-October) this 12 months.

The official mentioned the chief negotiators of each nations will maintain conferences from Might 19-22. Mr. Goyal will attain Washington on Might 16.

The principle points that can determine within the negotiations embody market entry, guidelines of origin, and non-tariff obstacles.

India’s proposal to impose retaliatory duties on sure U.S. merchandise over American tariffs on metal and aluminium would additionally determine within the BTA deliberations.

Via these discussions, officers from New Delhi and Washington purpose to make the most of the 90-day tariff pause window to advance the talks.

The U.S. has suspended the extra 26 per cent tariffs on India until July 9. It was introduced on April 2 to bridge the widening commerce deficit.

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Nonetheless, the ten% baseline tariff imposed on the nations will proceed to stay in place.

To provide impetus to the talks, India’s Chief Negotiator for BTA Rajesh Agrawal, particular secretary within the Division of Commerce, and Assistant US Commerce Consultant for South and Central Asia Brendan Lynch had final month held three-day talks in Washington.

Earlier than that in March, Mr. Goyal held bilateral conferences with Greer and Lutnick.

India and the U.S. have already initiated sectoral-level talks for the pact. The 2 sides are deliberating each on tariffs (associated to items) and non-tariff issues.

To spice up bilateral commerce, India is looking for responsibility concessions for labour-intensive sectors like textiles, gems and jewelry, leather-based items, clothes, plastics, chemical compounds, shrimp, oil seeds, chemical compounds, grapes, and bananas within the proposed pact with America.

However, the U.S. needs responsibility concessions in sectors like sure industrial items, cars (electrical autos specifically), wines, petrochemical merchandise, dairy, agriculture objects reminiscent of apples, and tree nuts.

The phrases of reference (ToRs) for the BTA have been finalised by India and the US, which embody round 19 chapters masking points like tariffs, items, companies, guidelines of origin, non-tariff obstacles, and customs facilitation.

The U.S. has on a number of events raised issues over sure non-tariff obstacles being confronted by American items within the Indian markets.

The U.S. remained India’s largest buying and selling companion for the fourth consecutive 12 months in 2024-25, with bilateral commerce valued at $131.84 billion. The U.S. accounts for about 18 per cent of India’s complete items exports, 6.22% in imports, and 10.73% within the nation’s complete merchandise commerce.

With America, India had a commerce surplus (the distinction between imports and exports) of $41.18 billion in items in 2024-25. It was $35.32 billion in 2023-24, $27.7 billion in 2022-23, $32.85 billion in 2021-22 and $22.73 billion in 2020-21. The U.S. has raised issues over this widening commerce deficit.

The ‘guidelines of origin’ provision prescribes a minimal quantity of supplies used or processed within the exporting nation to be thought-about as originating items in that nation.

Underneath this provision, a rustic that has inked a commerce pact with India can not dump items from some third nation within the Indian market by simply placing a label on it.

It has to undertake a prescribed worth addition in that product to export to India. Guidelines of origin norms assist include dumping of products.

In accordance with the 2025 Nationwide Commerce Estimate (NTE) Report on International Commerce Obstacles of the US, India maintains varied types of non-tariff obstacles reminiscent of banned or prohibited objects which are denied entry into India (instance tallow, fats, and oils of animal origin); objects that require a non-automatic import licence (instance sure livestock merchandise, prescribed drugs, sure chemical compounds, sure IT merchandise); and objects which are importable solely by authorities buying and selling monopolies and are topic to cupboard approval relating to import timing and amount (instance corn underneath a tariff-rate quota).

Indian exporters, too, face these obstacles in nations just like the U.S. and China.