In the simultaneously released, President’s Trade Policy Agenda, the Us said its trading partners are eliminating nearly all tariffs on US products, including India (99% for industrial goods), and the European Union (100% for industrial goods).
Noting that during 2025, the US focused on developing a roadmap for the BTA negotiations and completed several rounds of negotiations with India, the USTR said: “While gaps remain on sensitive issues, the US and India continue to work towards an agreement that will enhance market access, reduce long-standing tariff and non-tariff barriers to US exports, develop new rules to address systemic concerns impacting the trade relationship, and address India’s trade surplus with the US”.
February 6, India and the US issued a Joint Statement on a Framework for an Interim Agreement Regarding Reciprocal and Mutually Beneficial Trade.
“Under the Interim Agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide array of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” it said.
Under the Interim Agreement, India will address long-standing barriers to trade in American medical devices; eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, US Information and Communication Technology goods; and determine, with a view towards a positive outcome, “within six months of entry into force of the Agreement, whether US-developed or international standards, including testing requirements, are acceptable for the purposes of US exports entering the Indian market in identified sectors”.
India will also address long-standing non-tariff barriers to the trade in US food and agricultural products.“The United States and India will work towards finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA,” it said.
On Dispute settlement, the USTR said is one mechanism that the US may use to secure benefits for its stakeholders. “Whenever possible, the United States has sought to reach favorable resolutions or settlements that eliminate the foreign breach without having to resort to engaging in prolonged dispute settlement proceedings,” it said referring to India’s compliance regarding its patent protection, import restrictions on poultry products, domestic content requirements for participation in solar power generation; and measures relating to certain export subsidy programmes.