Overview

• Washington has pressed India to slash import duties on American farm goods including GMO crops and dairy, a demand New Delhi has resisted over concerns for its domestic farmers and food safety.
• India is seeking zero-duty access for key export sectors such as textiles, pharmaceuticals, leather goods, engineering products and auto parts.
• Absent an agreement by July 9, the 26% reciprocal tariff imposed by the US in April will snap back on top of the 10% baseline rate.
• Finance Minister Nirmala Sitharaman said talks with the US and EU are advancing rapidly and underscored that India’s tariff structure now features only eight slabs with effective rates well below bound levels.
• Following intensive meetings in Delhi this month, negotiators expect an Indian delegation to travel to Washington for the next round covering both the interim deal and the initial phase of a broader trade pact.