Law360 quoted Covington International Trade lawyer Arun Venkataraman throughout an in-depth analysis of the U.S.-India interim trade deal, which reduces U.S. tariffs on Indian goods from 50 percent to 18 percent but leaves key questions unanswered about implementation, scope, and the path toward a broader bilateral agreement.
Arun noted that the interim agreement will have a material impact on U.S.-India trade and that the joint statement’s reference to categories of goods eligible for further tariff relief is especially significant. “I think that is going to be of incredible significance to India, given that many of its key export products of interest are found in that list,” he said. He also observed that the fact the first full-fledged trade agreement the Trump administration is pursuing with a developing country is with India signifies “the importance the administration places on India.”
Looking ahead to broader negotiations, Arun said he expects Indian negotiators to be strategic. “We think by the fact that this is again a prelude to a bilateral trade agreement, you would expect India to be judicious about where it grants tariff reductions or duty-free access to American goods,” he said.
He added that while the agreed-upon 18 percent rate and the rates for neighboring countries are “not a meaningful distinction in terms of preferential access” to the U.S. market, a bilateral trade agreement “could hold a prize for them, particularly with respect to some of their key competitors.”
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