India-US trade agreement talks not on hold, engagement ongoing: Govt

India's Commerce Ministry has refuted reports that trade talks with the US are on hold, confirming that bilateral engagement continues for a mutually beneficial agreement. This comes even as the US launches new 'Section 301' probes.

India and the United States remain engaged for a mutually beneficial trade agreement and there is no hold off in bilateral engagement, Commerce Ministry officials said on Friday.

The Commerce Ministry rejected reports in sections of the media that talks between India and the United States for a Bilateral Trade Arrangement are on hold. "We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement," the Commerce Ministry said.

Interim Agreement Framework

The United States and India last month announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The framework reaffirmed the countries' commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

A joint statement said that the Interim Agreement between the United States and India will represent a historic milestone "in our countries' partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes".

Under the key terms of the Interim Agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

The statement said the United States will apply a reciprocal tariff rate of 18 percent on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery, and, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

New US Trade Investigations

In a fresh development, the Donald Trump administration has initiated fresh investigations into alleged "unfair trade practice" by 16 major trading partners, including India, China, and Bangladesh. The move aims to reinstate tariff pressure following a US Supreme Court ruling last month that declared previous levies illegal. These inquiries are being carried out under "Section 301" of the Trade Act of 1974. This legislation grants the US Trade Representative the authority to enforce tariffs or other punitive actions against nations found to be using unfair trade practices.

US Trade Representative Jamieson Greer indicated that the investigations could result in new tariffs being applied to China, the European Union, India, Japan, South Korea, and Mexico by the coming summer. The "excess capacity" probe also extends to several other partners, including Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway.

Notably, Canada, the second-largest trading partner of the US, was excluded from the list. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)