India Offers Zero Tariff on Most Products in US Trade Talks, Piyush Goyal’s Visit Likely Soon

In a significant development reported by CNBC-TV18, India has offered to eliminate tariffs on most products in its ongoing trade negotiations with the United States. This move signals a major step forward in the years-long dialogue between the 2 countries to enhance bilateral trade.

Report said, sources close to the matter revealed that India’s zero tariff offer excludes only a handful of sensitive agricultural items, namely wheat, maize, rice and dairy. These exclusions reflect domestic priorities and food security concerns.

Read More: India and US Negotiate ‘Fair and Balanced’ Trade Deal, Tackling Tariffs

The US Stance: A 10% Tariff Retained

While India is willing to make major tariff concessions, the United States reportedly wants to maintain a 10% tariff on Indian goods. This indicates that while tariff negotiations are progressing, complete reciprocity may remain elusive in the short term.

Non-Tariff Barriers Still a Hurdle

Despite the encouraging progress on tariff discussions, significant differences persist around non-tariff barriers. The US has reportedly submitted a list of 70 such barriers to the Indian government. These range from regulatory frameworks and import licensing procedures to product standards and safety protocols, which often hinder market access even when tariffs are low.

Piyush Goyal’s Likely Visit Around May 19

Union Commerce Minister Piyush Goyal is expected to travel to the United States in the coming weeks, around May 19, to advance the trade talks. His visit may serve as a critical juncture to bridge remaining gaps and finalise a mutually acceptable trade pact.

Trump’s Statement: “India Will Drop Tariffs to Nothing”

Earlier this week, former US President Donald Trump claimed that India had agreed to reduce its tariffs on American goods “to nothing.” While this statement may be politically charged, it echoes the broader narrative of easing trade barriers between the 2 nations.

“India, as an example, has one of the highest tariffs in the world… They’ll drop it to nothing,” Trump asserted. His remarks underscore the geopolitical significance of the negotiations, especially given the long-standing contention around tariff imbalances.

Long Road to a Bilateral Trade Agreement

India and the United States have been in negotiations for a comprehensive bilateral trade agreement for several years. While progress has often been slow and uneven, recent developments indicate a renewed willingness on both sides to finalise the deal.

Conclusion

Statements from US leadership, including assurances that “talks are coming along great,” suggest optimism about a breakthrough. However, key sticking points—especially around non-tariff measures—must be resolved before any formal agreement can be signed.

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