According to news agency PTI, this four-day dialogue (17-20 May) is taking place at a time when the two countries are exploring the possibility of interim trade system in goods to ensure “early mutual benefit” before finalizing the first phase of the trade agreement by autumn (September-October) this year.
India’s proposal will also be discussed
The official said that the main negotiaters of the two countries will hold a meeting from May 19 to 22. Goyal will reach Washington on 16 May. India’s proposal to impose recipes on some American products to protest against the US fee on steel and aluminum will also be discussed. Through these discussions, officials of India and America want to reach the consensus within the 90 -day ban on reciperook tariffs. Reciperook tariff means import duty or tariff imposed by one country on another country. This is a “such as Tit” policy, in which one country implements similar tariffs on imported goods from another country, which has already been put to another country.
Reciperook tariff currently suspended
However, the US has suspended the additional 26 per cent of the reciperook tariff on India till July 9. It was announced on 2 April to bridge the rising trade deficit. However, the original tariff of 10 percent is still applicable. The US remained India’s largest trading partner in 2024-25 consecutive years in the fourth consecutive year. The bilateral trade of both countries stood at US $ 131.84 billion. America’s stake in India’s total goods exports was around 18 percent, 6.22 percent in imports and 10.73 percent in the country’s total goods trade.
India’s trade surplus (differences between imports and exports) in terms of goods in 2024–25 with the US was US $ 41.18 billion. It was $ 35.32 billion in FY 2023-24, $ 27.7 billion in 2022-23, $ 32.85 billion in 2021-22 and $ 22.73 billion in 2020-21. The US has expressed concern over this growing trade deficit.