Editor’s Note
The White House has released a fact sheet detailing the key terms of an interim trade agreement between the United States and India. The document outlines provisions on tariff reductions, digital taxation, supply chains, and investment.
The White House has released a fact sheet on the India-US interim trade agreement. It mentions key terms related to tariff reductions, digital tax, supply chains, and investment.
A major update has emerged regarding the India-US trade deal. The White House, the official office of the US President, has released a fact sheet on the proposed interim trade agreement between India and the US. It states that both countries will work in the coming weeks to finalize a mutually beneficial bilateral trade agreement (BTA). According to the fact sheet, India and the US will continue negotiations on key issues such as services, investment, labor, government procurement, digital trade, and supply chains.
The document released by the White House mentions some key terms of the agreement:
- India will eliminate or reduce tariffs on a wide range of US industrial products and food and agricultural products.
- This includes red sorghum, dried distillers grains, tree nuts, fresh and processed fruits, certain pulses, soybean oil, wine, and spirits.
- India has expressed commitment to purchase over $50 billion worth of US products in sectors like energy, IT, agriculture, coal, and others.
The ‘Path to a Prosperous Future’ section of the fact sheet states that India has historically imposed some of the highest tariffs on US products among major economies. Average tariffs on agricultural products have been up to 37% and over 100% on some vehicles. The US alleges that India has long maintained protectionist non-tariff barriers, severely impacting US exports.
According to the document, India is committed to removing its digital services tax. Both countries will negotiate robust digital trade rules. There is agreement to maintain the policy of not imposing customs duties on electronic transmissions. Emphasis will be placed on increasing bilateral trade in technology products and joint technology cooperation.
The fact sheet says that India and the US will enhance economic security coordination to strengthen supply chains and foster innovation. Joint steps will be taken to address third-party non-market policies. Cooperation will be undertaken on investment review and export controls.
According to the White House, in the coming weeks, India and the US will work towards implementing the interim agreement and finalizing the bilateral trade agreement. This fact sheet was released following recent discussions between Indian Prime Minister Narendra Modi and US President Donald Trump.
The document also mentions that:
- Following India’s commitment to stop purchasing Russian oil,
- The US has agreed to remove the additional 25% tariff imposed on Indian imports.
- President Trump has also signed an executive order for this.
- For India: Better access to the US market.
- For the US: Expansion into a market with a population of 1.4 billion.
- Globally: Strengthening of supply chain and technology cooperation.
