With the US and the European Union signing a mini trade deal on Friday i.e. 21th August, the main focus has now shifted to the long-drawn trade package being negotiated by India and the US with a thin margin left for resolving the pending differences before the US 2020 November elections.
A limited trade package under negotiations between India and the US since 2018 is expected to cover tariff-related concessions for US farm products, especially dairy items, pricing of pharmaceutical products such as stents and knee implants, and IT products. In return, Washington is expected to restore benefits accorded to Indian exporters under the GSP (Generalized System of Preferences), which was terminated by Trump from 5 June last year. Rumours also state both sides will remove the tit-for-tat tariff hikes after the US raised steel and aluminium tariffs on grounds of national security.
A second trade expert, who also also spoke under condition of anonymity, said post-coronavirus, India would find it difficult to yield on issues like tariff reduction on medical devices and farm products as they have become more sensitive matters now. He also added, “A deal between both sides at this stage looks very difficult as the focus of the Trump administration has shifted towards the upcoming Presidential election. There is little time now to resolve pending differences.”
