US officials draft a framework for staggered reciprocal trade negotiations - sources cited by WSJ.

US officials draft a framework for staggered reciprocal trade negotiations - sources cited by WSJ.

India and the United States are set to commence negotiations on a bilateral trade agreement (BTA) with significant momentum, according to sources. The talks, which are expected to begin on April 23, will cover a wide range of topics, including goods, services, and customs facilitation. The discussions will be led by Rajesh Agrawal, the newly appointed Additional Secretary in the Department of Commerce, who will assume the role of Commerce Secretary on October 1 [1].

The upcoming negotiations follow a series of senior-level discussions held in India last month, including a visit by Brendan Lynch, the Assistant US Trade Representative for South and Central Asia. The talks aim to capitalize on the 90-day tariff pause announced by US President Donald Trump on April 9, which provides a window for substantial progress [1].

Both countries are seeking to double their bilateral trade from approximately USD 191 billion to USD 500 billion by 2030. The US is focusing on tariff concessions in sectors such as industrial goods, electric vehicles, wines, dairy, petrochemicals, and agricultural products, including apples and tree nuts. Meanwhile, India is prioritizing access for labor-intensive exports like textiles, gems and jewelry, leather, plastics, and seafood [1].

The negotiations are a critical step in addressing the widening trade surplus India enjoys with the US, which reached USD 41.18 billion in 2024–25. The Trump administration had imposed new tariffs of up to 26% on Indian goods, but these were temporarily suspended until July 9, allowing for further negotiations [1].

Key exports from India to the US in 2024 included drug formulations and biologics (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), jewelry (USD 3.2 billion), cotton garments (USD 2.8 billion), and iron and steel products (USD 2.7 billion). Meanwhile, major imports from the US included crude oil (USD 4.5 billion), petroleum (USD 3.6 billion), coal and coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft and parts (USD 1.3 billion), and gold (USD 1.3 billion) [1].

The proposed BTA negotiations are expected to conclude their first phase by September–October this year. The talks signal growing momentum in the India-US bilateral trade agreement, which could significantly impact the global trade landscape.

References:
[1] https://www.timesnownews.com/business-economy/economy/india-us-trade-talks-gain-momentum-19-chapter-pact-on-table-key-negotiations-begin-april-23-article-151452828