BTA can be a package deal that includes issues such as commodity, digital trade, professional movement, trade and technical barriers to intellectual property rights.
Talk this week
The two sides will begin virtual negotiations this week and have some clarity on expected deals at the end of May. “The government is reviewing all 11,000 tariff lines under the BTA, and the deal will be a package that includes tariffs such as commodity and non-tariff barriers, rather than sector-based issues,” an official said.
He said that between developed entities such as the United States and the European Union, zero-value tariffs are possible. Under the zero-setting framework, a country has identified tariff lines or product categories that can eliminate import responsibilities, and instead of such businesses, trading partners have eliminated tariffs on similar quantities of goods.
Among other issues, Washington’s interests include data localization, government procurement and quality control orders in India, while New Delhi’s focus areas are long-standing statistics and easier work visas.
India and the United States aim to end the first part of the BTA by September to October, with a broader goal of doubling bilateral trade to $500 billion by 2030. “The deal has begun to work. Officials said that talks at the BTA were accelerated and a temporary or early harvest agreement was reached within three months.
While India’s 26% reciprocity tariff has been put on hold, the 10% benchmark tariff remains. But this is compared to China’s 145% responsibilities. Experts and lobby groups suggest that if the U.S. does so, India cuts trade taxes on the industrial tariff lines by 90%. The strategy will cover a similar proportion of India-US bilateral commodity trade. The United States accounts for about 18% of India’s total cargo exports, 6.22% of imports and 10.73% of bilateral trade.
Washington is studying certain industrial supplies, automobiles, wine, petrochemicals, dairy and agricultural products, such as apples, tree nuts and alfalfa hay. India could consider cutting labor-intensive sectors such as clothing, textiles, gems and jewelry, leather, plastics, chemicals, oilseeds, shrimp and gardening products.
Delhi-based Think Tank Gtri said on Sunday that low-value e-commerce goods shipped from China from the U.S. from China opened up a lot of opportunities for Indian online exporters because if the traditional Chinese tape is cut, the government will provide timely support and they can fill the gap.
With over 100,000 e-commerce sellers and $5 billion in current exports, India fills any gaps left by Chinese goods, especially in customized small batches such as handicrafts, fashion and household goods.
Starting from May 2, China and Hong Kong e-commerce goods shipped to the United States under $800 will face a 120% import tax, ending their duty-free entry.
