India is ready to start a field-specific trade discussion with the US to form a consensus on the much-awaited bilateral trade agreement. Bloomberg quoted a senior official as saying that the two sides would start bilateral talks this week, in which both New Delhi and Washington want more clarity about the concessions. Earlier in March, representatives of India’s Department of Commerce and US Trade Representative Office started from March 26 and held a meeting in the national capital for four days.
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Zero-for-Zero Tariff Strategy
The ‘Zero-for-Zero’ tariff strategy cannot be discussed in the Indo-US trade talks, as the two countries are currently in various stages of economic development. Zero-for-Zero tariff strategy is possible when advanced economies make a deal among themselves, such as the US and the European Union. Conversely, for an economy like India. This strategy is practically not beneficial when the deal is between different economies like India and America. Both India and the US want to complete the first phase of talks by September or October this year. Currently, the Indo-US trade is US $ 191 billion, both countries want to carry bilateral trade envisaged during PM Modi’s meeting with US President Donald Trump in January this year to US $ 500 billion than doubled.
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What do America and India expect from trade talks?
The US can seek tariff concessions from India in many areas including petrochemicals, dairy, agricultural products, electric vehicles, wines and industrial items. India’s demands can be concentrated around the fee deduction on labor-dominated areas like textiles, gems and jewelery, clothes etc. Washington also hopes that New Delhi will open its agricultural market to American businesses. However, it is unlikely that India will include dairy and agriculture in trade talks as these areas may have political impact.
