List of Q&AS (Questions and Answers) to explain the importance of this visit and the impact on China’s high tariffs on India:
Q: What is an “early batch”?
one. The U.S. and India aim to reach a Bilateral Trade Agreement (BTA), a free trade agreement. The two decided to end the proposed BTA in two segments or phases. They have set a deadline to end the first phase of this fall (September to October).
However, using the 90-day tariff suspension window, India is exploring opportunities to discuss “early batches”.
In this regard, both parties can consider discussing issues such as limited quantities of goods (different from the maximum quantity of goods covered in the entire FTA) and cutting non-propaganda barriers. This may lay the foundation for more complex negotiations, such as issues such as government procurement and digital trade. However, it is only possible if the win-win results of both.
Q: Did India negotiate a free trade agreement earlier?
one. Yes. India has reached this agreement with Australia. The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into effect on December 29, 2022. Now, they are negotiating a comprehensive trade agreement by expanding the scope of the ECTA.
Q: What is the 90-day tariff suspension window announced by the United States?
one. U.S. President Donald Trump announced reciprocal tariffs (or import taxes) in many countries, including India and China, on April 2. However, on April 9, he announced that the tariffs were suspended for 90 days unless in China and floods, and that in China and floods, about 75 countries have contacted trade deals with 75 countries. Chinese goods entering the United States will face up to 245% of the responsibilities.
But, in addition to the 25% tariff on steel, aluminum and automotive components, the benchmark tariff of 10% on April 2 was still in effect.
Q: What are the exceptions to US tariffs?
one. Semiconductors, pharmaceuticals and certain energy products fall under the exemption category. Earlier this month, the Trump administration expanded the category by including smartphones, computers and certain other electronic products imported primarily from China.
Q: Why did the early BTA or a comprehensive trade agreement with the United States matter to India?
one. It will help protect India’s exports to the United States from potential U.S. tariffs.
Q: India – What is TOR in the US BTA?
one. These mainly include the scope and objectives of trade agreements. According to sources, it will cover about 19 chapters such as tariffs, non-advocacy barriers, commodities, rules of origin and customs promotion.
Q: How many meetings have occurred in the agreement so far?
one. On February 13, 20025, Prime Minister Narendra Modi announced the BTA during his visit to Washington, DC.
Business and Industry Secretary Piyush Goyal visited Washington from March 4 to 6, during which time he met with U.S. trade representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Brendan Lynch, Assistant Trade Representative for South and Central Asia in the United States, held trade discussions with Indian officials in India from March 25 to 29. During this deliberation, they decided to actually engage at the department level in the coming weeks. Now, the Indian team is visiting the United States.
Q: What are the key elements of BTA?
one. The agreement aims to double the bilateral trade in goods and services by 2030 to $500 billion.
While the United States is looking for certain industrial supplies, automobiles (especially electric vehicles), wine, petrochemicals, dairy and agricultural goods, such as apples, fruit trees and alfalfa hay, India may look at layoffs in labor-intensive sectors such as clothing, textiles, gemstones and jewelry, leather, plastics, chemicals, oilseeds, shrimp and gardening products.
Q: What does the Indian joint statement issued on February 14 comment on BTA?
one. As the $500 billion ambition requires new fair trade terms, the two sides announced plans to negotiate the first of a mutually beneficial multi-sector BTA by fall 2025.
To promote this innovative, broad BTA, both will adopt a comprehensive approach to strengthening and deepening bilateral trade in the goods and services sectors, and will work to increase market access, reduce tariffs and non-advocacy barriers, and deepen supply chain integration.
The United States welcomes India’s measures to reduce tariffs on products of interest in bourbon, motorcycle, ICT products and metal regions and takes measures to enhance market access to U.S. agricultural products such as alfalfa hay and duck meat and medical equipment.
Q: What is the meaning of deepening supply chain integration?
one. India and the United States are seeking cooperation in establishing flexible supply chains in key minerals, semiconductors and medicines. This will help both sides diversify their supply chains and reduce their dependence on a few countries.
