India's high-level official delegation, led by chief negotiator Rajesh Agrawal, has returned from Washington after the trade talks with US officials without reaching a final agreement on the sensitive issue of trade in agricultural and dairy products that the US is pushing for.
However, there is still a glimmer of hope that an interim bilateral trade agreement may be reached at the highest political level in the two countries before the July 9 deadline for the 26 per cent hike in US tariffs on Indian exports to kick in.
The Indian team was in Washington for negotiations on an interim trade agreement with the US from June 26 to July 2.
The US is seeking broader market access for its agricultural and dairy products, which is a major hurdle, as for India, this is a livelihood issue of the country’s small farmers and hence is considered a sensitive area.
While India is looking to secure an exemption from President Donald Trump's 26 per cent tariffs by concluding an interim deal before July 9, it is also pushing for significant tariff concessions for its labour-intensive exports such as textiles, leather and footwear.
Meanwhile, President Trump has announced that the US administration will start sending letters informing trading partners of their tariff rates as soon as Friday, even as negotiations with various countries, including India, to avoid higher US levies have stretched into the last lap.
Trump told journalists late on Thursday that about "10 to 12 countries will get letters on Friday" with additional letters coming "over the next few days".
He said that the tariffs will range in value from 60 per cent to 70 per cent and 10 per cent to 20 per cent, which these countries will have to start paying from August 1, to do business with the US.
"I’d rather just do a simple deal where you can maintain it and control it. You’re going to pay a 20 per cent or 30 per cent tariff, and we’re going to be sending some letters out, starting probably tomorrow, maybe 10 a day, to various countries, saying what they’re going to pay to do business with the US," he added.
Trump has announced a number of trade deals, including with Vietnam and China. He had stated last month that the US and India may sign an agreement that will open up India for US goods.
Picture Courtesy: IANS
