India-US Interim Trade Deal Nears Finish Line, But Sensitive Sectors Stall Final Agreement: Report

Negotiations for a preliminary trade deal between India and the United States have reached an advanced stage, but a final agreement is still out of reach as political leaders on both sides need to resolve some remaining issues, according to a Hindustan Times report.

According to officials cited in the HT report, the main hurdles are India’s demand for an unequivocal US commitment to withdraw all punitive tariffs and Washington’s push for greater access to India’s sensitive agricultural markets.

“The two-day deliberation that started in Washington on Thursday will likely stretch over to next week,” a source directly involved in the talk was quoted as saying by HT.

While significant progress has been made, India insists on repealing retaliatory duties, including the 26 per cent reciprocal tariff slated to take effect from 9 July, as well as rolling back safeguard duties contested at the WTO.

“Washington has not yet given any unequivocal commitment on these matters, which are crucial for Indian interests,” another person added.

On agriculture, American negotiators have proposed tariff rate quotas (TRQs) to ease entry for products like ethanol, almonds, and wine.

However, demands for opening sensitive sectors, especially dairy, remain a red line for India due to the livelihoods of millions of subsistence farmers and religious sensitivities around cattle feed practices.

“America is unwilling to accept an institutional mechanism which would certify that its India-bound agriculture produce are not genetically modified,” one source explained, noting India’s legal restrictions on GM crops.

Negotiators hope for an interim deal before the 9 July tariff deadline, but all eyes are now on political leaders for a decisive push.

Also Read: Hyderabad’s Major Infra Push Advances: Telangana–MoD Agreement Paves Way For Two Elevated Corridors