India-US talks on interim trade deal in final phase

Last Lap

- Mukesh Jagota

WITH INDIA TOUGHENING its stand on opening up its agriculture sector in a way sought by the US, the talks between the two countries on an interim trade agreement have entered a sensitive stage.

To get an agreement, the Indian team of negotiators, who are currently in Washington, are expected to extend their stay beyond Monday, a senior official said.

The talks in Washington were to end on Friday last week but were extended by three more days till Monday to finalize the interim trade deal that will help India avoid the full blow of reciprocal tariffs.

In an interview to FE on Sunday, finance minister Nirmala Sitharaman had said that agriculture and dairy were among very big red lines where a high degree of caution has been exercised.

"There is no way we could do anything that would weaken our agriculture, our farmers' position."

"If talks fail, then 26% tariffs on Indian imports are imminent," another official said.

Whatever path the negotiations on the interim deal take, both sides will continue to discuss the first tranche of the Bilateral Trade Agreement (BTA) and conclude it by the autumn deadline.