Final Round Of India-US Trade Negotiations Starts Today, Key Legal Issues On The Table

New Delhi: A four-day marathon meeting on trade between India and America is starting in Delhi from Monday. The objective is clear, to finalize an interim trade agreement. The foundation of this deal was laid in February itself, now only the details have to be decided.

Who is sitting in the conversation? 

Chief negotiator Brendan Lynch has brought the team from the American side. India will be commanded by Darpan Jain, Additional Secretary, Commerce Department. The chief negotiators of both countries will sit face to face and resolve the issues.

What is to be decided in the interim agreement? 

The Commerce Ministry said that both the countries want to move forward on many issues. Points like market access, non-tariff barriers, ease of customs and trade, increasing investment and economic security are on the table. Efforts are being made to finalize all the clauses of the interim deal so that the way for a bigger BTA i.e. bilateral trade agreement is opened.

What was decided in February?

On February 7, India and America issued a joint statement. In that, both of them agreed that there should be a trade agreement which would benefit both of them. The framework of the interim agreement was agreed on the same day.

What was the tariff formula in the old deal? 

According to the outline, America was ready to reduce the tariff on India from 50% to 18%. The 25% extra duty imposed on purchasing oil from Russia was to be removed. The remaining 25% tariff was also to be brought down to 18%.

Where was the obstacle? 

On February 20, the US Supreme Court put the brakes on Trump's retaliatory tariffs. After this, Trump imposed 10% tariff on all countries for 150 days from February 24. Due to these changes, the meeting of chief negotiators scheduled for February had to be postponed. Now that meeting is starting from Monday.

What is the update on India-Oman FTA? 

Meanwhile, FTA between India and Oman is also coming into effect from today. Both countries will formally announce this on Monday. Meaning, on one hand, India is finalizing a deal with America and on the other hand, it is opening trade with Oman. Now the focus is on four days of talks. If the deal is finalized, Indian exports will get relief and American goods may also become cheaper. The outline made in February now has to be given legal shape.