The framework of the agreement will be decided(agreement) 

Washington: Amid threats of imposing retaliatory customs duty from the Donald Trump administration, senior officials of India and America will start three-day talks on the proposed bilateral trade agreement (agreement)  here on Wednesday. An official gave this information on Tuesday. US Assistant Trade Representative for South and West Asia Brandon Lynch is currently in India with a team of officials to formally start negotiations on the agreement. Lynch will hold discussions with Additional Secretary Rajesh Agarwal in the Commerce Department.

The framework of the agreement will be decided

The official said that both sides will finalize the framework of the agreement, the negotiation schedule and the terms of reference during their discussions. The agreement will be finalized in two phases and the first phase is expected to focus on issues related to commodity trade. India and America are aiming to complete the first phase or part of the agreement by September-October this year. Usually in such trade agreements, both the countries reduce or zero the import duty on maximum (90-95 percent) of the products traded bilaterally. Apart from this, norms are also made easy to promote trade in services and promote investment.

Agreements with many countries

India has such agreements with the United Arab Emirates (UAE), Australia and the European Free Trade Association (EFTA). While the US has demanded more market access in sectors like some industrial goods, vehicles, alcohol and agriculture, India may consider reducing the duty for labor-intensive sectors like textiles. Lynch’s visit is taking place amid US President Donald Trump’s announcement of imposing retaliatory customs duty on India. Trump has announced to impose this duty from April 2. Commerce and Industry Minister Piyush Goyal visited Washington in early March amid Trump’s announcement. He held talks with US Trade Representative Jameson Greer and US Commerce Secretary Howard Lutnick.

An example of America’s commitment
Meanwhile, US Consul General in Mumbai Mike Hankey said on Lynch’s visit to India that this effort is an example of America’s commitment to fair and balanced trade with India. Hankey said, “We believe that these discussions can lead to constructive, equitable and visionary solutions.” The Mumbai-based US Consul General justified Trump’s move at a program of the US India Business Council, saying that the US President is correcting the imbalance of tariffs by imposing retaliatory tariffs.