India and the United States are on the verge of a breakthrough in their negotiations for a mini-trade deal and an announcement could come as early as this weekend, sources have told Moneycontrol.
“Last night, talks reached a juncture where a breakthrough is possible, therefore it is not an impossibility that the deal may be announced sometime this week,” one of the sources said. India has, so far, stuck to its stance on sensitive sectors such as agriculture and dairy.
The two countries have been in talks for more than five days now, with an Indian side led by commerce ministry special secretary Rajesh Agarwal extending its Washington stay.
“It is possible the announcement of the deal will come by Friday, there are indications of the same,” a second source said.
Moneycontrol has reported that India has toughened its position on issues related to dairy and agriculture, especially genetically modified (GM) crops, as negotiations in Washington enter a crucial phase.
Officials warned that talks may collapse if the US continues to press for sweeping concessions on dairy and agriculture, specifically GM variants of maize and soyabean.
India is looking to secure an exemption from US President Donald Trump's 26 percent tariffs, out of which a 10 percent baseline duty has already been implemented.
It is also pushing for significant tariff concessions for its labour-intensive exports such as textiles, leather and footwear.
The steeper duties, which were put on hold for 90 days after Trump's so-called Liberation Day announcement in April, are expected to be kick in from July 9 after the pause ends.
India has been trying to negotiate a scaled-down version of the first tranche of a Bilateral Trade Agreement (BTA) with the US to ensure that it escapes Trump's reciprocal tariffs.
The deadline for a more comprehensive BTA is this year’s fall.
Trump on July 2 signalled optimism around reaching a trade agreement with India. The US has already agreed to limited deals with Britain, China and Vietnam.
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