India-US trade deal talks still ongoing, says White House fact sheet
Rather than a finalised pact, release describes a set of commitments and steps that the US and Indian govts say they will begin implementing in the coming weeks
The White House on Monday (February 9) night issued a detailed release — a 'fact sheet' — outlining the contours of a proposed India-US trade arrangement, following a joint statement by US President Donald Trump after a call with Prime Minister Narendra Modi last week.
The announcement sets out a framework for an interim agreement on reciprocal trade and reiterates the intent of both sides to continue negotiations on a comprehensive bilateral trade agreement (BTA). Rather than a finalised pact, the release describes a set of commitments and proposed steps that the two governments say they will begin implementing in the coming weeks.
"In line with the roadmap set out in the Terms of Reference for the BTA, the United States and India will continue negotiations to address the remaining tariff barriers, additional non-tariff barriers, technical barriers to trade, customs and trade facilitation, good regulatory practices, trade remedies, services and investment, intellectual property, labor, environment, government procurement, and trade-distorting or unfair practices of state-owned enterprises," the fact sheet says.
Changes to tariffs
A key element of the announcement relates to tariffs imposed by the US on Indian goods. Trump has agreed to remove an additional 25 per cent tariff on imports from India. According to the release, this decision follows India’s commitment to stop purchasing oil from Russia.
The White House also said the US will reduce its reciprocal tariff on India from 25 per cent to 18 per cent, citing India’s willingness to address what Washington describes as systemic imbalances in the bilateral trade relationship and shared national security concerns.
On India’s side, the release states that New Delhi will eliminate or reduce tariffs on all US industrial goods and on a range of US food and agricultural products. These include dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, among others.
The document notes that India has historically maintained high tariffs on US products, with average agricultural tariffs cited at around 37 per cent and tariffs exceeding 100 per cent on some automobiles.
"President Trump continues to advance the interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters, including in the agricultural sector," the White House release says.
Purchase commitments
The White House statement says India has committed to buying more American products and to purchasing over $500 billion worth of US energy, information and communication technology, agricultural, coal and other goods. No timeline or breakdown for these purchases is provided in the release.
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India has also committed to addressing non-tariff barriers affecting bilateral trade in what the statement describes as priority areas, though specific measures are not detailed.
According to the release, India will remove its digital services taxes and has agreed to negotiate bilateral digital trade rules. These would include provisions aimed at preventing customs duties on electronic transmissions and addressing practices seen by the US as discriminatory or burdensome.
The two countries will also negotiate rules of origin to ensure that the benefits of the agreement accrue primarily to the US and India.
Technology, supply chains
The statement highlights plans to increase bilateral trade in technology products and expand joint technology cooperation. It also refers to closer alignment on economic security, supply chain resilience, investment screening and export controls.
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The White House makes clear that negotiations are ongoing. In line with the agreed terms of reference for the BTA, talks will continue on a wide range of outstanding issues, including services, investment, intellectual property, labour, environment, government procurement and state-owned enterprises.
Overall, the release presents the announcement as a framework and a starting point rather than a concluded trade deal, with further negotiations required before a comprehensive agreement is finalised.