India-US trade deal in final stage; tariffs to be cut, New Delhi to import soyabean, corn
The US and India are close to finalising a bilateral trade agreement, expected by the end of November, as Washington prepares to withdraw penalty tariffs. India will allow limited duty-free imports of US soyabean, corn and select dairy products, while both sides settle reciprocal tariff rates on industrial and farm goods.
The United States and India are set to announce a bilateral trade agreement by the end of November after Washington agrees to withdraw penalty tariffs, Deccan Chronicle reported on Sunday, citing sources involved in the negotiations.
India will open its market to duty-free imports of soyabean, corn, and certain dairy products, while the two sides are finalising reciprocal tariff rates on industrial and agricultural goods, the report stated.
“The deal is expected to be announced before the end of November. The Russian oil issue is well-settled, and US President Donald Trump also has acknowledged it. So, the penalty tariffs will be withdrawn,” officials privy to the negotiations told DC.
Earlier this week, Trump said the US was getting close to reaching a deal with India that would expand economic and security ties between the two countries, boost U.S. energy exports and promote investments in key U.S. sectors.
“We’re getting a fair deal, just a fair trade deal,” Trump told reporters in the Oval Office at the swearing-in of his envoy to India, Sergio Gor. “We’re making a deal with India, much different deal than we had in the past.”
Both sides have held high-level talks aimed at resolving trade frictions that escalated after the US imposed 50% tariffs on selected Indian exports. Out of 50% tariff, 25% is for buying Russian oil. However, India’s imports of Russian oil have already declined in October, with a sharp fall expected from November.
The focus now is on finalising reciprocal tariffs, the report said. Two ranges are being discussed: between 12 and 15 per cent or between 15 and 19 per cent.
According to the report, both sides have settled most issues related to product lists eligible for duty-free or reduced-duty imports. India’s key concession involves allowing the import of US soyabean and corn, subject to regulatory clearances. India plans to use the corn imported from the US for the production of ethanol.
India has reportedly agreed to buy soyabean, which is classified as non-genetically modified, directly from the industry. However, the US is not pushing much on large purchases of soyabean as China is currently buying it from the US.
On dairy products, India has agreed to limited imports under strict safeguards. “Based on certain conditions, it may allow a few dairy products, but not liquid milk,” an official was quoted as saying. Agricultural imports-particularly of dairy-were among the most contentious issues during negotiations.
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Source : Business Today
