India pulled ‘Laxman Rekha’ on Trump’s tariff, now the ball in America’s court before deadline

India has set its limits on major issues in areas like agriculture and dairy for the proposed interim trade agreement with the US. So now Washington is in the hands of finalizing the deal.

Sources said that if the issues are resolved, the interim trade agreement can be announced before July 9. The 90-day fee for dozens of countries including India on behalf of US President Donald Trump is also ending on this day. He said that India has set its boundaries and now the ball is in America’s court.

Trying to finalize interim trade agreement

The two countries had announced to start negotiations for bilateral trade agreement (BTA) in February. He decided to complete the first phase of BTA by this year’s autumn (September-October). Before that, both sides are trying to finalize the interim trade agreement.

On April 2, the US imposed an additional 26 percent counter -counter duty on Indian goods, but postponed it for 90 days. However, 10 percent of the original fee levied by the US is still applicable. India wants a complete discount from this 26 percent fee. A source said, “If the proposed trade talks fail, then 26 percent fees will be implemented again.”

India does not trade agreement on time limit basis

Commerce Minister Piyush Goyal said last week that India does not compromise on a deadline basis and will accept the proposed trade agreement with the US only when it is in national interest. According to sources, the FTA is possible only when both sides get benefits and it should be a profitable agreement for both sides.

Only last week, the Indian party has returned from Washington after talking on the interim trade agreement with the US. There are also differences between the two countries at steel and aluminum (50 percent), vehicle (25 percent) fees.

India is also adopting a tough stand

India has tightened its stand on giving fees concessions to the US on agriculture and dairy products, because both are sensitive subjects. India has never opened the dairy sector in any trade agreement signed before.

Trump said last week that his administration is sending letters to the first group of 10-12 countries, in which the details of the counter-duty rates will be shared and the entire process can be completed by 9 July.

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