NEW DELHI: With the Trump administration’s deadline for imposing higher import tariffs on its trading partners shifted to August 1, Indian trade negotiators are likely to visit the US again to iron out the differences and seal a deal, government sources said.
India was expecting to sign an interim trade deal with the US ahead of the earlier deadline of July 9 but could not, due to differences over tariff rates on agriculture, dairy, and automobiles.
The government decided to send the trade negotiators again after the earlier team led by Rajesh Agrawal, special secretary, Department of Commerce, returned without a deal in hand.
The dates for the team’s next US visit have not been finalised, but it could be sometime next week. According to sources, the Indian government is trying to negotiate a “complete deal” and it is not differentiating between an interim deal and the first phase of the Bilateral Trade Agreement. “Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue,” said an official.
While US President Donald Trump has been claiming that a deal with India would be signed soon, finance ministry sources say talks so far have hit a deadlock.
Officials say the Indian side has been guarding against any tariff reduction on agriculture and dairy products. Tariff on automobiles is also said to be one of the contentious issues.
Initially, India appeared to relent on agriculture tariffs, but after pressure from the Swadeshi Jagran Manch, the government seems to have hardened its stand.
‘No deal is better than bad deal’
Sources close to the government say no deal is better than a bad deal. For the record, Commerce Minister Piyush Goyal has said that India is in no hurry to seal a deal with the US unless it is mutually beneficial for both countries
Rejecting deal won’t hurt India’
India may refuse to ink a trade deal and accept US reciprocal tariffs, said sources. “US is imposing higher tariffs on other countries too. So, our export competitiveness may not get impacted at all,” the sources reasoned.