India first seals the terms of the trade agreement with Trump 2.0 as negotiations will begin

India and the United States have completed reference clauses for the proposed Bilateral Trade Agreement (BTA), which sets a platform for formal negotiations to begin. This is the first such framework the new Donald Trump administration has completed against the trade deal.

U.S. Trade Representative (USTR) Jamieson Greer stressed the “serious lack of reciprocity” in the trade relations between the two countries, saying: “These negotiations will help achieve balance and reciprocity by opening up new markets of American goods and addressing unfair practices that harm American workers.”

Prime Minister Narendra Modi and U.S. Vice President JD Vance met a day ago and discussed the deal.
“The U.S. goal includes increasing market access and reducing tariff and non-tariff barriers,” USTR said in Factsheet.

A well-defined TOR
The goals, he said, include “negotiating a strong set of additional commitments to secure long-term benefits.” Greer praised India’s “constructive participation” and said he looked forward to creating new opportunities for workers, farmers and entrepreneurs in both countries. “The United States is very clear about what they want, and TOR (reference clauses) clearly defines the scope of work,” said a trade expert. “They want to address the tariff and non-tariff issues. They have clarified the core issues.” India said earlier that it would protect its interests.

A senior business and industry official said: “India and the United States are not only close strategic partners, but also complementary market economies. Although India and the United States have deep trade and economic ties in trade and economic ties, the spread and depth of these relationships still have a long way to go.

Two-line BTA could be a package deal covering merchandise, digital trade, the movement of professionals, technical barriers to trade and intellectual property rights. Indian trade negotiators will begin a three-day visit to Washington on Wednesday.

“BTA aims to enhance and expand bilateral trade, technological and economic ties in a mutually beneficial way, so U.S. Vice President Vance, known as the 21st century partnership of the 21st century, can provide greater prosperity and well-being for both peoples.”

Key Question
On April 2, Trump announced reciprocal tariffs on imported goods in most countries, including a 26% tax on Indian goods. However, he believes these – besides the 10% benchmark tariff – are held for 90 days until July 8.