Trade: India and the US have finalized terms for the proposed BTA, says USTR

Virendra Pandit

New Delhi: Amid Vice-President J D Vance’s four-day India visit, United States Trade Representative (USTR) Jamieson Greer said on Tuesday that the two countries have finalized the terms of reference (ToR), outlining the roadmap for negotiations, for the proposed Bilateral Trade Agreement (BTR), the media reported.

In a statement, he said these ongoing bilateral talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm US workers.

The two sides have finalized the terms of reference for negotiations on “a new and modern trade agreement,” the White House said in a statement.

India and the US on Monday said that they made “significant progress” in negotiations for a mutually beneficial bilateral trade pact as Prime Minister Narendra Modi and the visiting US Vice President JD Vance held wide-ranging talks in New Delhi.

Vance is the first US Vice-President to visit India in 12 years after Joe Biden came to New Delhi in 2013.

According to the USTR, the US is looking at increasing market access in India, reducing tariffs and non-tariff barriers, and negotiating a robust set of additional commitments to ensure long-term benefits.

The US has long recognised significant trade barriers with India and, as a result, it ran a USD 45.7 billion worth of goods trade deficit with India in 2024, a 5.1 percent (USD 2.2 billion) increase over 2023, the USTR statement said.

In Jaipur on Tuesday, Vance said he is amazed by the richness of India’s history and tradition and the country’s “laser-like focus on the future.”

He also spoke of the growth in bilateral ties across a range of sectors, including energy, and said, “American energy can help realise India’s nuclear power production goals.”

Like President Donald Trump, he said, Prime Minister Narendra Modi also inspires “remarkable loyalty because of the strength of his belief in his people and in his country.”

“In the United States, we’re proud of the deep connection between our nations, between India and the United States. Prime Minister Modi, as most of you probably know, was one of the first visitors welcomed into the Oval Office during President Trump’s second term…we’re so grateful for Prime Minister Modi’s hospitality as well as the reception that he and everyone else in this country have given us on this first trip for me to India,” he said.

Vance also shared his personal connection with India. “This is my first time visiting the birthplace of my wife’s parents,” he said.

Meanwhile, Union Minister Jyotiraditya Scindia said on Tuesday that New Delhi is looking to stitch an early deal with Washington that spares it from President Donald Trump’s additional tariff hikes.

A 26 percent ‘reciprocal’ tariff on Indian exports to the US is currently on a 90-day pause, set to expire on July 8. However, like other countries, India is subject to a 10 percent base tariff under the existing policy.