US assures India of tariff advantage over rival economies under proposed trade pact

Tariff advantage promised to India, services issues pushed to second tranche

NEW DELHI: The United States has assured India of a comparative tariff advantage over competing economies under the proposed bilateral trade pact, news agency PTI quoted a senior government official as saying, even as negotiations on the initial tranche and the broader agreement continue."The US has assured India of a comparative tariff advantage over its competitors in the trade deal. We will have to see how the tariff framework unfolds," the official said.However, the official cautioned that the extent of the advantage would depend on the final tariff structure. The outcome of the second investigation initiated by the office of the United States Trade Representative (USTR) against India is also awaited.India is aiming to conclude the first tranche of the trade deal by the end of the current financial year, the official said. Negotiations are progressing simultaneously on the initial tranche and the broader Bilateral Trade Agreement (BTA).

Services-related issues will not be included in the initial package and will instead be taken up during discussions on the second tranche, which will form part of the larger BTA, the official added.

The official said the final agreement would take the form of a legal text accompanied by annexures, with a dedicated chapter on customs and trade facilitation.Earlier, another senior commerce ministry official told ANI that India and the US had held discussions on customs and trade facilitation last week. A two-member US team had visited India on November 2-3 for talks on the issue, the official said.The two countries have been negotiating the trade pact in phases, seeking to secure early gains through the first tranche while continuing discussions on more complex issues under the broader agreement.