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US-India Trade Deal Progress: Why President's Final Call Awaits Deal

Trade negotiations between the US and India have shown significant progress according to USISPF President Mukesh Aghi. The US administration has exempted several agricultural products from reciprocal tariffs, giving India a potential advantage. Key Indian exports like spices, tea, and tropical fruits now face only standard MFN duties. The final decision now rests with the US President to officially close the trade deal.

Key Points: USISPF President Says US India Trade Talks Progress Well

  • US exempts agricultural products from reciprocal tariffs benefiting India
  • India's current US agricultural exports valued at $548 million
  • Key Indian exports include spices, tea, and tropical fruits
  • White House order excludes coffee, cocoa, and bananas from tariffs
2 min read

Trade talks with US have moved on quite well, says USISPF President

USISPF President Mukesh Aghi reveals trade negotiations with India have progressed significantly, awaiting President's final approval to close the deal.

"The negotiations on trade have moved on quite well and from my India perspective, everything is done - Mukesh Aghi, USISPF President"

New Delhi, November 16

Mukesh Aghi, President and Chief Executive Officer of the US-India Strategic Partnership Forum, said that trade negotiations have moved on well with the US.

Aghi, in conversation with ANI, said that they were waiting for the President to take a call on the deal.

He said, "The negotiations on trade have moved on quite well and from my India perspective, everything is done and the terms are with the President. We are waiting for the President to take a call and close the deal."

India is expected to gain a small edge as the US administration has exempted agricultural products from the reciprocal tariffs it had imposed on several countries, said trade think tank GTRI.

The United States has removed a set of agricultural products from the reciprocal tariffs introduced earlier this year, meaning these items will now face only the standard MFN duties.

A White House Executive Order issued on November 12 excludes coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef, and certain fertilisers from the April 2 reciprocal tariff regime, according to a Global Trade Research Initiative (GTRI) report released on Saturday.

The exemptions took effect on November 13. These goods are either not produced in adequate quantities domestically or depend on climate conditions that the US cannot replicate, GTRI has asserted.

For the tariff-exempt products identified in the order, India currently supplies only USD 548 million of America's USD 50.6 billion import basket, reflecting a narrow export footprint dominated by a few winners, GTRI noted.

US' demand for these items is heavily concentrated in categories.

India's exports to the US are concentrated in a handful of high-value spices and niche products: pepper and capsicum preparations (USD 181 million), ginger-turmeric-curry spices (USD 84 million), anise and cumin seed categories (USD 85 million), cardamom and nutmeg (USD 15 million), tea (USD 68 million), and modest quantities of coconuts, cocoa beans, cinnamon, cloves, and fruit products.

- ANI

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Reader Comments

R
Rohit P
While the agricultural exemptions are good, $548 million out of $50.6 billion is just 1% of US imports. We need to diversify our exports beyond spices and niche products. The government should focus on manufacturing and tech exports too.
M
Michael C
As someone working in international trade, this strategic partnership is crucial. The US recognizing India's unique agricultural strengths while waiting for presidential approval shows the maturity of our bilateral relationship. Well done to the negotiating teams!
A
Ananya R
Our Indian spices are finally getting the recognition they deserve! 🇮🇳 This will boost income for thousands of farmers in Kerala, Karnataka, and other spice-growing regions. Hope this leads to more such trade agreements.
S
Sarah B
The timing is interesting with the US elections coming up. Hope this deal doesn't get stuck in political limbo. Both countries stand to gain from stronger trade ties, especially in these uncertain economic times.
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Vikram M
Good progress, but let's not celebrate too early. We've seen trade deals with the US get delayed before. The real test will be when the President actually signs it. Fingers crossed! 🤞

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