India and US to aim for preliminary pact ahead of bilateral trade agreement: Report

The bilateral trade agreement was part of joint statement by Prime Minister Narendra Modi and Donald Trump in February last month. (AFP photo)

India is aiming to fast-track the critical bilateral trade agreement with the US. Amid the growing clamour over the wide-ranging tariffs announced by the US President Donald Trump, latest reports suggest that the officials from both sides are interested in finalising a preliminary trade agreement.

A report by the Mint said that both New Delhi and Washington may strike a preliminary pact, which will keep crucial topics such as intellectual property and immigration out of the ambit.

The ‘mini’ trade agreement may have relief for some pharma sector products, lentils and almonds, the Mint report added. New Delhi wants to finalise the contour of the trade pact based on the structure in the trade pacts with other nations such as Australia, UAE.

The report said that the template regarding reduction of duties goes well with New Delhi strategy of balancing domestic interest along with global demands.

The Mint report added that ahead of the full-fledged BTA, which was part of joint statement by Prime Minister Narendra Modi and Donald Trump in February last month, the discussions are on for the prelim pact.

Meanwhile, a Business Standard report said that Commerce Minister Piyush Goyal is all set to meet traders and major exporters this week amid trade pact discussions. While New Delhi was trying for an exemption from the new round of tariffs, the US President has often repeated that India will not be given any special treatment.

The Business Standard report further said that New Delhi is working on reducing the average applied levy on the imports from America. At present, New Delhi’s weighted average tariff on American exports is 9.5 percent.