U.S.-India trade talks ongoing: Farm products, e-commerce, and data centers are highlighted among the 19 significant sectors under discussion
Trade Talks Between India and the US Continue Amidst Tariff Wars
The ongoing tariff disputes haven't stopped India and the United States from engaging in trade negotiations. Recent discussions focus on a multi-sector agreement known as a Bilateral Trade Agreement (BTA), as reported by Bloomberg. Key sectors under consideration include data storage, ecommerce, farm products, and critical minerals.
Vice President JD Vance's Visit Paves the Way for Trade Deal
The foundation for the new trade deal between India and the US was laid during the recent visit of US Vice President JD Vance to India. Both parties have agreed on a broad framework for the trade deal, encompassing not only goods but also services.
Potential Rollback of Retaliatory Tariffs by China
Previously, Donald Trump imposed a 26% reciprocal tariff on India, which has been put on hold. The US is one of India's largest trade partners and the most significant importer of Indian service industry exports. India was the first country to initiate trade talks with the US.
Agricultural Products Hold Key Importance for the US
Agricultural products are a primary focus for the US, which is seeking a potential market for its agricultural exports. However, high tariffs on these products in India have been a significant obstacle. Indian farmers oppose importing agricultural goods due to fears of impacting their earnings.
Genetically modified soybeans and corn, major farm products of the US, are strongly restricted in India. As a significant producer of both crops, India's stance remains firm.
American Giants Like Amazon and Walmart Seek a Level Playing Field in India
Ecommerce giants like Amazon and Walmart, along with other US companies, are pushing for expanded market access in India. However, the Indian retail landscape is competitive, with major players like Reliance Retail posing significant challenges. US companies have called for a level playing field against Indian companies and protection for local mom-and-pop stores against big corporations.
IT Companies Express Concerns over India's Data Centre Policy
IT companies from the US, such as Google, Meta, and Microsoft, have voiced concerns about India's data center policy. The policy's localization is also under discussion in the ongoing trade deal negotiations.
Sources:1. The U.S.-India COMPACT: Catalyzing U.S.-India Capabilities, Technology, and Partnerships2. Remarks by President Biden on the United States – India Strategic Partnership3. U.S. Trade Representative Statements on India Trade Deal4. Bloomberg – India, U.S. Tariff War Talks Heating Up With Wide-Ranging Trade Talks Ahead
- The ongoing trade talks between India and the US are anticipated to cover a broad spectrum of sectors, including finance, technology, and economy, with a focus on a Bilateral Trade Agreement (BTA).
- The US is keen on expanding its service industry exports to India, recognizing it as one of India's largest trade partners.
- Defi and blockchain technology have become emerging categories within finance, and their potential impact on the Indian economy is expected to be discussed in the trade negotiations.
- The Kirana storeowners in India have expressed concerns over the potential entry of American ecommerce giants like Amazon and Walmart, hoping for a level playing field in the competitive retail market.
- IT companies from the US, such as Google, Meta, and Microsoft, have agreed on the importance of negotiating India's data center policy, which involves localization and its implications for technology companies.
