Goyal is expected to hold meetings with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick during his visit from May 17-20.
“The chief negotiators of both countries will hold meetings from May 19-22,” the official said.
India’s proposal to impose retaliatory duties on certain American products under the World Trade Organisation (WTO) to counter the American tariffs on steel and aluminium in the name of safeguard measures could also be taken up during the talks.
The talks also come amid the US announcing trade deals with China and the UK.
China’s proposal to cut tariffs on American goods to 10% from 125% for 90 days, and a reciprocal US proposal to reduce levies on Chinese goods to 30% from 145% offer both challenges and opportunities for India, exporters have said.During the previous round of meetings held in Washington from April 23–25, India and the US had discussed a pathway for “early mutual wins” ahead of the first tranche of the proposed BTA to be concluded by fall this year. They have already initiated sectoral-level talks.Through these discussions, officials from New Delhi and Washington aim to take advantage of the 90-day tariff pause window to advance the talks.
The US has suspended the additional 26% tariffs on India till July 9. However, the 10% baseline tariff imposed on the countries continue to remain in place.
Issues related to market access, rules of origin and non-tariff measures, could be yeh key areas of discussions. Besides tariff concessions, the US also wants India to address issues such as import barriers, standards including quality control
orders and intellectual property.
WTO retaliation
New Delhi may choose to resolve the issue of imposing retaliatory duties on certain American products over the US’ steel and aluminum tariffs through the ongoing BTA negotiations between the two countries, the official said. It’s not binding and upto India to decide if it wants to apply the tariffs.
India told the WTO Monday that these measures would affect $7.6 billion imports into the US.
India had earlier issued a similar notification against the EU over the bloc’s steel safeguard measure of 2019 and 2021, but it has not been implemented to date.
“It is for India to decide whether to effectuate these proposed retaliation after 30 days of the notification or later or resolve it as part of ongoing BTA negotiations,” the official said.
Experts said that India’s move to reserve its retaliation rights could serve as a bargaining chip in the proposed trade deal.
In June 2019, India imposed higher tariffs on 28 American products after the US withdrew benefits under its Generalized System of Preferences (GSP) and continued its 25% and 10% tariffs on certain steel and aluminium products. That was the first time India resorted to such a measure. However, the duties were withdrawn in September 2023, following the decision of both countries to resolve seven WTO disputes.
