Trade Pact With India to Open New Markets for American Goods: USTR

The proposed trade agreement with India will create new markets for American products and generate new opportunities for workers, farmers, and entrepreneurs in both nations, the USTR announced on Tuesday.

US Trade Representative (USTR) Jamieson Greer stated that there is a "significant" absence of reciprocity in the trade connection with India.

The USTR additionally commended Vice President J D Vance and Prime Minister Narendra Modi’s statement emphasizing the significance of the India-US COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology) initiative and underscoring the advancements in the discussions for a Bilateral Trade Agreement (BTA), which both countries initiated on February 13.

“These ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers. India’s constructive engagement so far has been welcomed and I look forward to creating new opportunities for workers, farmers, and entrepreneurs in both countries,” he said.

The two nations intend to complete the initial phase of the agreement by the autumn (September-October) of this year. According to the USTR statement, India and the US have completed the terms of reference that delineate the roadmap for the negotiations of the suggested BTA.

“I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalised the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade,” Ambassador Greer said.

The USTR states that the United States aims to enhance market access, lower tariffs and non-tariff barriers, and negotiate a strong array of further commitments to secure lasting advantages.

The United States has consistently acknowledged notable trade obstacles with India, leading to a USD 45.7 billion goods trade deficit with India in 2024, marking a 5.1 percent (USD 2.2 billion) rise from 2023, according to the statement.

In 2024, the total trade in goods between the US and India was projected to be USD 129.2 billion. As stated by the US, India's average applied tariff stands at 17 percent, which is one of the highest among the world's biggest economies, whereas America's average applied tariff is at 3.3 percent.

India imposes an average tariff rate of 39 percent on agricultural goods, whereas the USA's rate is only 5 percent.