The Trump administration has described the India-US trade deal as historic. The White House says that this deal has opened the Indian market to American products.
The White House also issued a statement outlining the specific terms of the deal, under which the US has agreed to reduce the reciprocal tariff on India from 25% to 18%.
What did India agree to?
This statement clarified several aspects of the deal, especially President Trump's claim that India has agreed to reduce tariff and non-tariff barriers against the US to zero.
It also stated that Trump has agreed to remove an additional 25% tariff on Indian imports, honoring New Delhi's promise to stop purchasing Russian oil.
What did India remove tariffs on?
The White House stated that India has agreed to eliminate or reduce tariffs on all US industrial goods and a variety of US food and agricultural products, including dried distillers' grains (DDGs), red sorghum, tree nuts, fresh and processed fruits, some pulses, soybean oil, wine and spirits, and other products.
The statement also stated that India has pledged to purchase more US products and to purchase more than $500 billion worth of energy, information and communication technology, agricultural coal, and other US products.
What was agreed upon?
The statement emphasized that New Delhi has also agreed to remove non-tariff barriers impacting bilateral trade in priority sectors.
In addition, India will also remove its digital services tax and has pledged to negotiate stronger bilateral digital trade rules, including rules prohibiting the imposition of customs duties on electronic transmissions.
The statement also said that the US and India have agreed to negotiate rules of origin to ensure that the agreed benefits accrue most effectively to the US and India.
The White House said that the US and India will significantly expand mutual trade in technology products and enhance shared technology cooperation.
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