As the July 9 deadline for the reimposition of the U.S.’ reciprocal tariffs approaches, a possible trade deal nonetheless stays difficult as an settlement between India and the U.S. on agriculture and dairy stays elusive, in line with sources.
“We want to do a deal before July 9, but agriculture and dairy are emerging as challenges,” a supply which is conscious of the developments mentioned.
“These are sensitive sectors, especially dairy, so we want to be very careful.”
However, regardless of the federal government’s keenness to conclude a deal with the U.S. earlier than July 9, it isn’t “desperate” to take action, they mentioned. “Even if we miss the deadline of July 9, what will happen, tariffs will go back to April 2 levels,” the supply mentioned.
“So, India will lose in some areas, gain in some, because it is not like U.S. trade deals are happening with other countries. We are the only country that is negotiating so elaborately for a trade deal with U.S.” Even on the subject of a “mini deal”, the federal government remains to be wanting into what could be included and what could be excluded.
“But there are challenges to meet the July 9 deadline given there are differences,” the supply defined. “Our team will go to the U.S. for the next round of in-person meeting to discuss both the mini deal and the first tranche of the Bilateral Trade Deal (BTA), the timeline for which is Fall.”
Alert over Iran
On the scenario unfolding in Iran, a senior authorities official individually mentioned that Iran attacking U.S. bases in Syria has turned the scenario “more serious” and that the Indian authorities was growing its vigilance on the affect this might have on trade.
“There are alternative routes to the Strait of Hormuz, but it will also raise costs as it will increase the time for shipment of goods,” the official mentioned.