An interim trade agreement between India and the US is likely to be finalised in the next 48 hours. Talks are going on between the two countries in Washington regarding this deal. India’s trade representative will remain in Washington for a few more days to resolve differences between the two countries regarding the agreement. Both countries want to do a trade deal before July 9, because after this the US President will start imposing high tariffs on goods coming to America from India.
The US has been pressing for greater market access for the Indian agriculture and dairy sectors, sources said. However, the sector has long remained a red line for New Delhi due to rural livelihood and food security concerns. It is very difficult for India to compromise on this. News agency Reuters has reported quoting sources that India’s trade representatives will not compromise on key agriculture and dairy issues. He said imposing tariffs within India on genetically modified or hybrid corn, soybeans, rice and wheat grown in the US is unacceptable.
Let us tell you, on 2nd April this year, US President Donald Trump had declared it as ‘Liberation Day’ and announced to impose reciprocal tariff on all countries. Trump had threatened to impose 26 percent tariff on goods coming to America. However, Trump then allowed time to negotiate a trade deal and the tariff was temporarily reduced to 10%. Meanwhile, Trump had also said that a trade deal would be signed between India and the US very soon.