Talks still on for proposed trade package between India, US: Sources

Negotiations are going on between India and the US to iron out differences for a proposed trade package but chances of signing a deal during US President Donald Trump's visit here next week are thin, sources said on Monday.

Officials of both the countries are yet to resolve issues pertaining to sectors, including politically sensitive agriculture and dairy, even as less than a week is left for the visit of the US President, according to sources.

They said the deal between the two countries should be mutually beneficial and should not compromise India's interest.

"The US is adding more to its list of demands as trade talks are progressing," they added.

 

It is also not yet clear whether the US-India CEOs Forum will be convened during Trump's two-day visit, beginning from February 24.

The forum is a panel of CEOs that gives feedback to the US and Indian governments on commercial relationship between the two countries.

As the US is seeking greater market access for its dairy products, India has conveyed to them that dairy and milk products should not be derived from animals that are fed internal organs, blood meal, or tissues of ruminant origin as it would hurt sentiments of the society at large.

On the other hand, India is seeking resumption of export incentives by the US, under its Generalized System of Preferences (GSP) programme.

Under this programme, India had earlier exported goods worth USD 6.5 billion. So if the US would resume these incentives, it would seek greater market access equivalent to this amount at least.

Under GSP, India was exporting 1,900 items from sectors like chemicals and engineering. It was rolled back by the US last year.

India is demanding exemption from high duties imposed by the US on certain steel and aluminium products, and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering.

On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items, medical devices, and data localisation, apart from cut on import duties on some information and communication technology products. The US has also raised concerns over high trade deficit with India.

In 2018-19, India's exports to the US stood at USD 52.4 billion while imports were USD 35.5 billion. Trade deficit dipped from USD 21.3 billion in 2017-18 to USD 16.9 billion in 2018-19.

India received FDI worth USD 3.13 billion from the US in 2018-19, higher than USD 2 billion in 2017-18.