India Us BTA: uncertainty prevails even after the fifth cycle of negotiations while the deadline of August 1 is closer
The uncertainty persists to find out if India and the United States will be able to win a trade agreement before the deadline of August 1 when the United States should take reciprocal prices on imports from other nations. However, India remains optimistic that the negotiations will end in the signing of the first tranche of a bilateral trade agreement by the specified calendar of the fall 2025.
“The Indian negotiator team returned to India during the weekend. India continues to stick to its position according to which the sensitive sectors of agriculture, dairy products and GMs are a prohibited area within the framework of commercial negotiations, “said sources, adding that other talks may be necessary to finalize the trade agreement.
“You have to see what should be done next. Discussions in India are also underway on how to proceed,” said the source.
The fifth cycle of negotiations between India and the United States on the provisional trade agreement took place for four days from July 14 to 17 in Washington DC. The Indian team was led by Rajesh Agrawal, special secretary, Ministry of Commerce.
The United States plans to impose a reciprocal rate of 26% on India from August 1, including a reference rate of 10% on all countries which are already in force.
Traders and industry are concerned about the impact of export prices, which will become more expensive for the United States, which is a key export market for India. However, farmers’ associations have urged the government not to reduce its position on agricultural, dairy and GM cultures.
However, civil servants remain convinced that the first BTA tranche will be completed by September-October this year, as has been highlighted in the declaration of leaders in February after a meeting between Prime Minister Narendra Modi and US President Donald Trump.
The United States remains the main export destination for India with exports of goods in April and May 2025, going to $ 25.52 billion, compared to $ 20.89 billion during the same period.
