India, US trade talks hit a speed bump

The latest round of in-person trade negotiations between India and the US concluded in New Delhi on Tuesday with progress on multiple fronts but without significant breakthroughs on tariff issues, people aware of the matter told HT, identifying recent "protectionist" measures by Washington to slap 50% duties on steel and aluminum and its stance on the 10% baseline tariff on all imports as hurdles.

- Rajeev Jayaswal

NEW DELHI:

The extended six-day negotiation round, which saw the American delegation stay longer than initially planned, highlighted the complex nature of the discussions as both countries race to reach an agreement before the July 9 deadline when additional US tariffs are set to take effect.

An American negotiating team led by Assistant US Trade Representative Brendan Lynch arrived in Delhi on June 4 to hold face-to-face negotiations with the Indian team led by Special Secretary Rajesh Agrawal. This was the fourth time the two sides met at one of the capitals, and there was no announcement on Tuesday on whether they had set another in-person meeting.

Washington wants duty-free access for American goods, while India is willing to slash duties on most American products to near zero, provided the US reciprocates unequivocally, the people said, requesting anonymity because of sensitivities involved.

"The negotiations held with the US side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement, including through achievement of early wins," one person said.