India, US Negotiate Three-Phase Trade Agreement

India is reportedly engaged in discussions with the United States to negotiate a three-phase trade agreement. The initial phase is expected to result in an interim agreement by July, aligning with the end of the temporary tariff suspension period imposed by Donald Trump. This interim agreement is anticipated to cover industrial goods market access, certain agricultural products, and the resolution of some non-tariff barriers related to quality control requirements. The negotiations are being conducted privately, with officials requesting anonymity.

The ongoing talks are part of a broader effort to address longstanding trade issues between the two countries. The second phase of the agreement, expected to be more comprehensive and detailed, is projected to be finalized between September and November. This phase may cover the 19 sectors outlined in the April agreement, with the signing potentially coinciding with Trump's anticipated visit to India for the Quad security dialogue. The final phase of the agreement is expected to be a comprehensive deal, likely to be achieved by next year.

India's Commerce Minister, Piyush Goyal, is currently in Washington for a four-day visit, during which he is expected to meet with U.S. Trade Representative and the U.S. Secretary of Commerce to advance the negotiations. The outcome of these talks could have significant implications for the global trade landscape, particularly in the context of ongoing trade tensions and the broader economic relationship between India and the United States. The negotiations reflect a strategic effort by both countries to find a mutually beneficial agreement that addresses key trade issues and fosters economic cooperation.