India Adds Workforce To Commerce Ministry's NAFTA Division To Fast-Track US Trade Deal Amid Trump’s Reciprocal Tariffs

The Ministry of Commerce and Industry is intensifying its efforts to secure an early trade agreement with the US, potentially avoiding the 26 per cent reciprocal tariffs, by enlarging its NAFTA division responsible for India's bilateral trade with the United States, Canada, and Mexico, as reported by The Indian Express.

The ministry has started the process of appointing new officers to bolster the NAFTA (North American Free Trade Agreement) division, as additional coordination officers could improve the division's ability to handle its workload.

Furthermore, senior officers who are approaching the conclusion of their term in the ministry might have their terms extended, according to two government officials familiar with the situation, cited in the report.

Securing a prompt agreement with the US is vital for India's exports, given that numerous countries facing high counter tariffs, including Vietnam and Cambodia, have indicated to the US their readiness to reduce tariffs on American products as part of a trade agreement. The US is concurrently negotiating with multiple other countries that have shown an interest in similar arrangements.

Notably, India has not yet finalised a comprehensive trade agreement with any Western nation, despite substantial disagreements concerning labor and environmental standards. The trade deals with the European Union and the UK have been in negotiation stages for a number of years.

A report from the United States Trade Representative (USTR) suggests that the US is likely to address a variety of concerns with India during upcoming trade discussions. These concerns include India's data localisation requirements for banks and payment service providers.

The USTR has also placed India on the 'Priority Watch List' due to inconsistent advancements in intellectual property (IP) related matters. The report highlights the lack of specific legislation for the protection of trade secrets and extended delays in patent approval processes as significant issues.