How’s India-US trade talks progressing? Piyush Goyal shares update on US team visit

India and the US are likely to hold another round of trade negotiations next month, with an American delegation expected to visit New Delhi to advance talks on the proposed interim trade pact, Commerce and Industry Minister Piyush Goyal said on Thursday.

The proposed visit by the US trade delegation comes after Indian officials travelled to Washington in April for in-person talks aimed at finalising details of the interim trade pact and carrying forward negotiations under the BTA framework.

US Secretary of State Marco Rubio is also scheduled to visit India from May 23-26. This will be his first visit to India.

According to the US State Department, Rubio will visit Kolkata, Agra, Jaipur and New Delhi during the trip.

“Secretary Rubio will travel to India from May 23-26, where he will visit Kolkata, Agra, Jaipur, and New Delhi,” State Department spokesperson Tommy Pigott said.

Pigott said Rubio would discuss cooperation in the areas of energy, security, trade and defence with senior Indian officials.

Rubio will travel to India after attending the NATO Foreign Ministers’ meeting in Sweden on May 22.

When asked if the US chief negotiator for the BTA will accompany Rubio, Goyal said "he's not coming with him, but there is some plan for them to come next month".

India and the US had issued a joint statement on February 7 outlining the framework for an interim trade agreement.

Under the original framework, the US had agreed to lower tariffs on Indian goods to 18 per cent from 50 per cent and remove an additional 25 per cent tariff linked to India’s purchase of Russian oil.

However, the agreement required recalibration after the US Supreme Court on February 20 ruled against former President Donald Trump’s reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

Following the ruling, the Trump administration shifted to a flat 10 per cent tariff regime for all trading partners, prompting both countries to revisit parts of the proposed arrangement.

In a 2-1 decision, the US Court of International Trade termed the tariffs “invalid” and “unauthorized by law” and directed the administration to refund duties collected from the plaintiffs in the case, including the state of Washington, spice company Burlap & Barrel and toy maker Basic Fun!

The US administration has continued pursuing alternative trade actions to impose tariffs.

On March 11, the Office of the United States Trade Representative (USTR) launched a Section 301 investigation into industrial policies and practices of 16 economies, including India and China.

A day later, the USTR initiated another probe covering around 60 economies, including India and China, to examine whether policies linked to forced labour imports discriminate against US commerce.