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US assures India of tariff advantage over rival economies under proposed trade pact

By · Via Times of India · Published by Everything Blog

In short

Bilateral negotiations are advancing concurrently on an initial tranche and a broader trade agreement, with New Delhi targeting the close of the current financial year to conclude the first phase. The phased strategy allows both nations to lock in early economic wins while deferring intricate topics for subsequent rounds. The upcoming first tranche will explicitly omit services-related matters, reserving them instead for the second tranche of talks. Meanwhile, Indian authorities are closely monitoring a second pending investigation initiated by the Office of the United States Trade Representative.

Key points

  • The extent of preferential tariff treatment granted to India remains contingent on the fi…: The extent of preferential tariff treatment granted to India remains contingent on the final framework agreed upon by both nations.
  • The comprehensive bilateral pact will be compiled as a formal legal text accompanied by a…: The comprehensive bilateral pact will be compiled as a formal legal text accompanied by annexures, including a dedicated chapter on trade facilitation.
  • Bilateral negotiators are moving forward with discussions even as the final results of a…: Bilateral negotiators are moving forward with discussions even as the final results of a second United States Trade Representative investigation remain pending.

Sources checked by our analysis pipeline: 1

NEW DELHI: The United States has assured India of a comparative tariff advantage over competing economies under the proposed bilateral trade pact, news agency PTI quoted a senior government official as saying, even as negotiations on the initial tranche and the broader agreement continue.

"The US has assured India of a comparative tariff advantage over its competitors in the trade deal. We will have to see how the tariff framework unfolds," the official said.

However, the official cautioned that the extent of the advantage would depend on the final tariff structure. The outcome of the second investigation initiated by the office of the United States Trade Representative (USTR) against India is also awaited.

India is aiming to conclude the first tranche of the trade deal by the end of the current financial year, the official said. Negotiations are progressing simultaneously on the initial tranche and the broader Bilateral Trade Agreement (BTA).

Services-related issues will not be included in the initial package and will instead be taken up during discussions on the second tranche, which will form part of the larger…

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