The Delhi -based Global Trade Research Institute (GTRI) said on Tuesday that this week, during the conversation with Assistant American Trade Representative (USTR) Brendon Lynch, India should focus only on negotiating the fees on industrial goods.
Lynch along with a team of US government officials visited a 5 -day visit to India. The tour began on 25 March to interact with the Indian side. In this, bilateral trade between the two countries is to be discussed. It will discuss details of the proposed bilateral trade agreement (BTA), which aims to finalize the outline of the deal. Both sides are hoping that the first phase of the agreement will be completed in 2025.
The think tank has recommended that India should abolish the fee on 90 percent of the industrial tariff line, if the US also does so. This will include more than 90 percent of the bilateral goods trade between India and the US. It further recommended that India should not be involved in the discussion on matters like intellectual property, digital trade, fee or subsidy or government procurement. In addition, negotiations on the relaxation of rules for American giant Tesla, Starlink, Amazon and American pharmaceutical companies create serious concerns about national security, intellectual property rights and long -term impact on Indian businesses.
Last month, India tried to reduce the tax on Baraban whiskey before the US President Donald Trump cut the basic customs on several items as well as cut the basic customs duty on several items. It said that India recently made unilateral announcements to reduce the charge on the US on products such as motorcycles, and whiskey, which the US did not accept.
In another report, GTRI said that India needs to be cautious in a conversation with the US on the proposed BTA. Due to lack of ‘Fast Track Trade Authority’ (FTTA) in the US, there is a possibility of changing any agreement by the Congress. FTTA is a special right, under which the US Congress gives special rights to the President to accelerate business talks with a country and simplify it.
First Published – March 25, 2025 | 10:27 pm IST