INDIA US BILATERAL TRADE AGREEMENT

1. India and the US are negotiating a Bilateral Trade Agreement (BTA), which might bypass WTO’s Most Favoured Nation (MFN) clause by not extending tariff reductions to other WTO members.
2. Although not officially termed a Free Trade Agreement (FTA) yet, the BTA could later be notified as part of a broader FTA framework.
3. Officials argue that multilateralism is losing relevance, and bilateral negotiations are more practical and mutually beneficial.
4. India and the US are negotiating a Bilateral Trade Agreement (BTA), which might bypass WTO’s Most Favoured Nation (MFN) clause by not extending tariff reductions to other WTO members.
5. Although not officially termed a Free Trade Agreement (FTA) yet, the BTA could later be notified as part of a broader FTA framework.
6. Officials argue that multilateralism is losing relevance, and bilateral negotiations are more practical and mutually beneficial.
    

Timeline and Goals:
 

1. The agreement is expected to be signed by fall 2025, as per the understanding between PM Modi and US President Donald Trump.
2. USA and India established   “Mission 500” (to increase bilateral trade from $200 billion to $500 billion by 2030)
    

Trade Statistics (2024):
 

1. India’s exports to the US: $60.01 billion (↑ 5.76% YoY)
2. US imports to India: $34.29 billion (↑ 1.63% YoY)
3. US Trade Data (USTR):
   1. Total goods trade: $129.2 billion
   2. US exports to India: $41.8 billion (↑ 3.4%)
   3. US imports from India: $87.4 billion (↑ 1.5%)
   4. US trade deficit with India: $45.7 billion (↑ 5.4%)
       

KEY WTO PRINCIPLES
 

Principle	Core Idea	Explanation
1. Most Favoured Nation (MFN)	No discrimination between WTO members	If a trade benefit is given to one member, it must be given to all.
2. National Treatment	Equal treatment of foreign and domestic products	After customs clearance, imported goods must be treated like local goods.
3. Free Trade Through Negotiation	Gradual reduction of trade barriers	Members negotiate to reduce tariffs and other restrictions over time.
4. Predictability and Transparency	Stable and clear trading environment	Members commit to tariff limits (“bindings”) and must inform WTO of changes.
5. Promoting Fair Competition	Prevent unfair trade practices	Rules against dumping, export subsidies, and unfair advantages.
6. Special & Differential Treatment	Flexibility for developing and least-developed countries	More time, technical help, and preferential access for weaker economies.

US Secretary Howard Lutnick emphasized a focus on bilateralism, stating that worrying about every country globally makes trade negotiations “almost impossible.”

 

INDIA US BILATERAL TRADE AGREEMENT
 

1. India and the US are negotiating a Bilateral Trade Agreement (BTA), which might bypass WTO’s Most Favoured Nation (MFN) clause by not extending tariff reductions to other WTO members.
2. Although not officially termed a Free Trade Agreement (FTA) yet, the BTA could later be notified as part of a broader FTA framework.
3. a
4. Officials argue that multilateralism is losing relevance, and bilateral negotiations are more practical and mutually beneficial.
    

Timeline and Goals:
 

1. The agreement is expected to be signed by fall 2025, as per the understanding between PM Modi and US President Donald Trump.
2. USA and India established   “Mission 500” (to increase bilateral trade from $200 billion to $500 billion by 2030)
    

Trade Statistics (2024):
 

1. India’s exports to the US: $60.01 billion (↑ 5.76% YoY)
2. US imports to India: $34.29 billion (↑ 1.63% YoY)
3. US Trade Data (USTR):
   1. Total goods trade: $129.2 billion
   2. US exports to India: $41.8 billion (↑ 3.4%)
   3. US imports from India: $87.4 billion (↑ 1.5%)
   4. US trade deficit with India: $45.7 billion (↑ 5.4%)
       

KEY WTO PRINCIPLES
 

Principle	Core Idea	Explanation
1. Most Favoured Nation (MFN)	No discrimination between WTO members	If a trade benefit is given to one member, it must be given to all.
2. National Treatment	Equal treatment of foreign and domestic products	After customs clearance, imported goods must be treated like local goods.
3. Free Trade Through Negotiation	Gradual reduction of trade barriers	Members negotiate to reduce tariffs and other restrictions over time.
4. Predictability and Transparency	Stable and clear trading environment	Members commit to tariff limits (“bindings”) and must inform WTO of changes.
5. Promoting Fair Competition	Prevent unfair trade practices	Rules against dumping, export subsidies, and unfair advantages.
6. Special & Differential Treatment	Flexibility for developing and least-developed countries	More time, technical help, and preferential access for weaker economies.

US Secretary Howard Lutnick emphasized a focus on bilateralism, stating that worrying about every country globally makes trade negotiations “almost impossible.”