India and US Edge Closer to Historic Trade Agreement

In a bold move to accelerate trade discussions, India has proposed a zero-for-zero tariff arrangement with the United States on key products including steel, auto parts, and pharmaceuticals. This proposal, based on reciprocity and limited to certain import volumes, comes as both nations aim to finalize a swift trade agreement before the end of a 90-day suspension on reciprocal tariffs by US President Donald Trump.

Focus on Select Industries for Swift Agreement

Both countries are concentrating on specific industries to reach an agreement quickly, amidst concerns over US import tariffs and Quality Control Orders (QCOs) in India, which the US views as trade barriers. Indian authorities have shown willingness to review current QCOs, especially in the medical devices and chemical sectors, and have proposed a mutual recognition agreement to accept each other's regulatory frameworks.

Potential Easing of Trade Tensions

With the US economy contracting, the resolution of these trade discussions could not only ease tensions but also pave the way for stronger bilateral relations. The outcome of these negotiations is eagerly awaited, as it could significantly impact global trade dynamics.