US and India Agree on Terms for Bilateral Trade Agreement

The United States Trade Representative (USTR) has announced a significant milestone in the trade relations between the US and India. Both nations have agreed on the Terms of Reference for negotiating a proposed Bilateral Trade Agreement (BTA), marking a pivotal step towards enhancing economic ties.

Addressing Trade Imbalances and Creating Opportunities

USTR Jamieson Greer highlighted the importance of establishing reciprocity and opening new market opportunities. "The ongoing talks aim to address the lack of reciprocity in the trade relationship with India, ensuring a balanced and fair trade environment that benefits workers, farmers, and entrepreneurs in both countries," Greer stated.

Collaborative Efforts and Future Prospects

The collaborative declaration by US Vice President JD Vance and Prime Minister Narendra Modi underscores the mutual commitment to a prosperous trade relationship. With Vance's visit being the first by a US vice-president since 2013, the discussions have laid a solid foundation for future negotiations.

The US faces significant trade barriers with India, leading to a goods trade deficit of USD 45.7 billion in 2024. However, the recent tariff reductions by India signal a positive shift towards achieving a mutually beneficial agreement.