The Deputy US Ambassador for Trade, Rick Switzer, is set to visit India on December 10 and 11 to engage in high-level discussions with Indian officials. These talks are a critical part of ongoing efforts to finalise a bilateral trade agreement (BTA). This visit comes at a time when India and the US are looking to strengthen their ties and resolve trade issues that have surfaced in recent time.
The visit is primarily a familiarisation trip, according to Ministry of External Affairs spokesperson Randhir Jaiswal, who confirmed the visit during a media briefing on Monday.
"Ambassador Rick Switzer will be meeting with senior officials in the Indian government to further discussions on trade," Jaiswal said. Both countries have been actively negotiating a comprehensive trade agreement that would cover multiple sectors, aiming to increase bilateral trade significantly.
Positive for a fair and balanced deal
India and the United States have been working closely toward concluding a fair and balanced trade deal, with both governments emphasizing the importance of an agreement that benefits both sides. Several rounds of negotiations have already taken place, and Commerce Secretary Sunil Agarwal expressed confidence at the FICCI Annual General Meeting on November 28, stating that both countries are optimistic about reaching an agreement by the end of this year.
"We are hopeful that we can finalize a solution within this calendar year," Agarwal said. However, the timeline for completing the first phase of the agreement had to be adjusted due to recent changes in US trade policies, including the implementation of tariffs on Indian goods.
Challenges amid trade tensions
The road to finalizing the Bilateral Trade Agreement has not been entirely smooth. One of the major hurdles has been US tariff measures introduced by former President Donald Trump. These tariffs were first set at 25% in August 2021, followed by another 25% increase shortly after targeted Indian goods, citing issues such as India’s ongoing purchase of Russian oil. This action was part of broader reciprocal tariff measures in response to trade deficits with countries like India.
Despite these challenges, both countries have kept the dialogue open, continuing with several rounds of negotiations. India remains hopeful that the first tranche of the agreement will be finalized within the next few months, despite delays. The proposed Bilateral Trade Agreement (BTA) aims to more than double the current trade volume between the two countries, increasing it from USD 191 billion to an ambitious USD 500 billion by 2030.
This agreement was first discussed during Prime Minister Narendra Modi’s visit to Washington earlier this year, and both sides are eager to formalize the deal.
India has been actively pursuing such agreements with multiple global partners. To date, the country has signed 14 Free Trade Agreements (FTAs) and six Preferential Trade Agreements (PTAs), with ongoing negotiations for FTAs with several other key international players, including the European Union.
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