India-US conclude Fifth Round of Trade Pact negotiations

India and the United States have concluded the fifth round of discussions on the proposed Bilateral Trade Agreement (BTA) in Washington, according to information.The four-day negotiations, held from July 14 to 17, were aimed at progressing toward an interim trade deal before August 1 — the deadline for the suspension of additional tariffs imposed by the US under the Trump administration.
“The Indian team is coming back,” the official confirmed, adding that the talks were led by Rajesh Agrawal, India’s chief negotiator and special secretary in the Department of Commerce.The latest round of talks assumes significance as both sides seek to finalize an interim arrangement before the suspension of the 26% additional tariffs announced by US President Donald Trump on April 2. These tariffs, initially imposed on multiple countries including India, were put on hold for 90 days until July 9 and later extended to August 1 amid ongoing negotiations.
Key Issues in Discussion
During the fifth round, deliberations reportedly covered agriculture, automobiles, industrial goods, and sensitive strategic items under SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies).India has taken a firm stance against granting duty concessions on agri and dairy products, marking a consistent policy as no such concessions have been provided in prior free trade agreements. Farmers’ associations in India have also opposed the inclusion of agriculture in the pact.
India is pressing for the removal of the additional 26% tariff and seeks relief on duties imposed on steel and aluminium (50%) and automobiles (25%). It is also pushing for concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, plastics, chemicals, shrimps, and select agricultural products such as oilseeds, grapes, and bananas.Conversely, the US is seeking duty concessions on industrial goods, electric vehicles, wines, petrochemical products, dairy, apples, tree nuts, and genetically modified crops.
Both sides aim to conclude an interim agreement by August and complete the first tranche of the BTA by fall (September-October).According to information, India’s merchandise exports to the US surged 22.8% to $25.51 billion in April-June this fiscal, while imports rose 11.68% to $12.86 billion, underscoring the growing significance of bilateral trade ties.

(Business Correspondent)