Three-day talks focus on tariffs, market access, and boosting bilateral trade ties.
New Delhi: Trade negotiators from India and the United States began a three-day round of talks in New Delhi on Tuesday to finalise the first phase of an interim bilateral trade agreement (BTA), with discussions on unilateral tariff powers under Section 301 of the US Trade Act of 1974 expected to be central, official sources said.
India’s chief negotiator Darpan Jain and the US team, led by Brendan Lynch, resumed scheduled discussions at Vanijya Bhavan. “We expect that the two sides will clinch the first phase of the deal as per the schedule and take forward the negotiations for the broader bilateral trade agreement,” the official said. “The ongoing talks will be carried forward tomorrow, and the final contours of the agreement between the two countries will remain under discussion…” the official added.
Sources said India is likely to raise concerns over the Section 301 investigation mechanism and potential tariff actions as both sides work to conclude the interim pact.
The discussions follow changes in the US tariff regime after the US Supreme Court ruled against President Donald Trump’s reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Subsequently, the US administration imposed a uniform 10 per cent tariff on all trading partners for 150 days beginning February 24, altering the earlier tariff framework.
Officials said the US retains the option of invoking Section 301 to impose additional duties, prompting India to seek legal assurances that such measures would not undermine tariff concessions agreed under the pact.
“The risk for India is that even if a trade agreement reduces tariffs and expands market access, additional duties imposed later under Section 301 could dilute the benefits of the deal,” the official said. India has sought safeguards to ensure tariff predictability and maintain an advantage over competing exporters.
On February 7, both countries issued a joint statement outlining the framework of the first phase of the agreement. Under it, the US agreed to reduce tariffs on Indian goods to 18 per cent from 50 per cent and remove a 25 per cent tariff linked to India’s purchase of Russian oil, with the remaining 25 per cent to be cut to 18 per cent.
Officials indicated that both sides may revisit elements of the framework in light of recent tariff changes. “In light of these changes, the two sides met in Washington in April, when the Indian team, headed by Jain, visited America from April 20-23. To carry forward those discussions, the US team is here for the talks,” the official said.
Under the framework, India proposed reducing or eliminating tariffs on US industrial goods and a range of agricultural products, including dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, wine and spirits. New Delhi also indicated plans to purchase $500 billion worth of US energy products, aircraft, precious metals, technology goods and coking coal over five years.
