Key facts
- India and the US are close to finalizing the first tranche of a bilateral trade agreement.
- India's Trade Minister Piyush Goyal stated the agreement could be concluded by mid-July.
- Negotiations have accelerated recently after previous slowdowns.
- The US has proposed an additional tariff on imports from India related to forced labor concerns.
- The initial tranche is expected to provide India with preferential trade access.
India and the United States are reportedly making significant progress toward finalizing the first tranche of a bilateral trade agreement, with India's Trade Minister Piyush Goyal indicating it could be concluded by mid-July. Negotiations, which had previously slowed after the U.S. Supreme Court struck down certain tariff measures, have recently accelerated following meetings in New Delhi. Despite the US proposing an additional 12.5% tariff on imports from India concerning forced labor, Goyal stated that both sides are 'fast moving towards closing all the open ends' of the proposed deal. The initial tranche is expected to grant India preferential trade access over its competitors. A higher-level U.S. delegation is anticipated to visit India later this month. Indian and American officials engaged in "excellent discussions" between June 2 and June 4, effectively clearing the runway for the first phase of the pact.