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

The United States has pledged to offer India a comparative tariff advantage over other competing nations under a proposed bilateral trade pact, according to a senior Indian government official, as reported by PTI. Negotiations on the initial and broader trade deal are ongoing. The extent of tariffs is contingent upon the final agreement, the official warned.

India aims to finalize the first phase of the trade deal by the end of the current fiscal year. Services-related topics are not part of the initial agreement and will be addressed in the second tranche as part of the larger Bilateral Trade Agreement. Customs and trade facilitation, a key aspect of the deal, will be included in the final legal text along with annexures.

Discussions on these topics took place last week when a US team visited India. Earlier negotiations have focused on securing early benefits through the first tranche while continuing discussions on more complex issues within the broader agreement.