US, India Unveil Interim Trade Agreement Framework to Lower Tariffs
The US and Indian governments have unveiled a framework for an interim trade agreement aimed at reducing tariffs on Indian goods. The move comes six months after the Trump administration imposed steep taxes on Indian imports in an effort to pressure New Delhi to cut its reliance on cheap Russian crude.
Under the deal, India will lower tariffs on US goods from 18% to 25%, a significant reduction that has been welcomed by the Biden administration as a major step forward. The agreement also includes provisions for India to eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products.
The framework is described as "reciprocal and mutually beneficial" by both countries, with the US expressing commitment to work towards a broader trade deal that will include additional market access commitments and support more resilient supply chains. However, the agreement has been criticized by India's opposition parties, who claim it heavily favors the US and negatively impacts sensitive sectors such as agriculture.
The agreement is seen as a significant development in the ongoing efforts to normalize trade relations between the two countries. It comes after the recent free trade agreement with the European Union, which could affect up to 2 billion people, and is expected to further deepen investment and technology partnerships between India and the US.
India's Prime Minister Narendra Modi has welcomed the deal, saying it will "further deepen investment and technology partnerships" between the two countries. The deal also includes provisions to protect sensitive agricultural and dairy products, including maize, wheat, rice, ethanol, tobacco, and some vegetables.
The agreement is expected to boost India's export competitiveness, with tariffs set to go down to zero on a wide range of Indian goods exported to the US, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
The US and Indian governments have unveiled a framework for an interim trade agreement aimed at reducing tariffs on Indian goods. The move comes six months after the Trump administration imposed steep taxes on Indian imports in an effort to pressure New Delhi to cut its reliance on cheap Russian crude.
Under the deal, India will lower tariffs on US goods from 18% to 25%, a significant reduction that has been welcomed by the Biden administration as a major step forward. The agreement also includes provisions for India to eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products.
The framework is described as "reciprocal and mutually beneficial" by both countries, with the US expressing commitment to work towards a broader trade deal that will include additional market access commitments and support more resilient supply chains. However, the agreement has been criticized by India's opposition parties, who claim it heavily favors the US and negatively impacts sensitive sectors such as agriculture.
The agreement is seen as a significant development in the ongoing efforts to normalize trade relations between the two countries. It comes after the recent free trade agreement with the European Union, which could affect up to 2 billion people, and is expected to further deepen investment and technology partnerships between India and the US.
India's Prime Minister Narendra Modi has welcomed the deal, saying it will "further deepen investment and technology partnerships" between the two countries. The deal also includes provisions to protect sensitive agricultural and dairy products, including maize, wheat, rice, ethanol, tobacco, and some vegetables.
The agreement is expected to boost India's export competitiveness, with tariffs set to go down to zero on a wide range of Indian goods exported to the US, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
Like this new trade agreement between the US & India, sounds all cool 'n' stuff but at the end it's still gonna affect the little guy. Indian farmers are already struggling 
, now they gotta worry about lower tariffs on their own goods too? That can't be good for 'em. And what about those gems and diamonds, they're not even made in India anymore 
. The US just wants more of everything cheaply 
Still, I guess it's a start or something... 
. Lowering tariffs on US goods will definitely help increase exports from India, which is much needed given the current global economic uncertainty 
. It's also interesting to see how this deal can lead to more investment and technology partnerships between India and the US 
.
.
.
This is kinda cool that they're finally doing something about the whole trade thing! I mean, 6 months after Trump put all those tariffs on India, they're already making moves. The fact that they're lowering tariffs from 18% to 25% for US goods is a decent start, but I wish it was lower. Still, I guess it's better than nothing 
. And the part about eliminating or reducing tariffs on industrial goods and food products sounds like a win-win for both countries. India gets more access to the US market, and the US gets some good deals too 
, especially when they're already struggling to compete with cheaper imports from other countries 
.
. I think what's interesting is how it highlights the shift in priorities for both countries - the Biden administration wants more access to Indian markets and technology, while India needs to reduce its dependence on cheap Russian crude.
. Do we really want a trade deal that benefits one country at the expense of another? I think the opposition parties in India are right to be skeptical - this agreement could have significant implications for sensitive sectors like agriculture. But at the same time, it's hard not to see the potential benefits for Indian businesses and consumers 
.
. I mean, 18% to 25% is a big reduction in tariffs, it's definitely a win for Indian exports. But at the same time, I can see why some people might be skeptical - like how is India going to benefit from this if most of these low-tariff products are just generic pharmaceuticals and gems? I feel like there should be more focus on supporting Indian industries that need help, not just export-boosting stuff. But overall, it's a positive step in the right direction