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Hindustan Times
4 days ago
- Business
- Hindustan Times
India-US trade talks need political push for final leg
The fine print of a preliminary trade deal between India and the US has mostly been worked out by negotiators from both sides but the ball is now in the court of the political leadership to break a stalemate, people aware of the parleys told HT, disclosing two of the topmost sticking points that remain. Trade experts said an interim trade deal between India and the US is possible by July 9, provided both respect practical and political sensitivities of each other. (AFP File) According to these people, these issues are: an unequivocal assurance that New Delhi seeks from Washington that all punitive levies will be repealed, and a freer access to India's politically sensitive agriculture sector that the American side has sought. 'The two-day deliberation that started in Washington on Thursday will likely stretch over to next week,' one of these people, who has direct knowledge of the talks, told HT. Both sides are in a sprint to announce a breakthrough, which will be a preliminary deal covering some portion of the trade between two nations, with a larger bilateral trade deal expected to be signed by October. Once the deal is done, India wants America to withdraw all existing and potential retaliatory tariffs, including the 26% reciprocal tariff — this comprises a 10% baseline tariff imposed from April 5 and an additional 16% country-specific levy set to trigger from July 9. India also wants the US to revoke all safeguard duties disputed at the World Trade Organisation—50% on Indian steel and aluminium and 25% on automobiles and auto parts—and to reciprocate New Delhi's move by proportionately slashing its most favoured nation tariffs. 'Washington has not yet given any unequivocal commitment on these matters, which are crucial for Indian interests,' another person said. American negotiators have been suggesting India replicate the US-UK Economic Prosperity Deal model, where Britain accepted continued 10% baseline tariffs on most goods while securing relief from additional sectoral tariffs. However, Indian negotiators have rejected this approach. The other sticking point is the US insistence on India opening its agriculture and farming sector. While the American side is open to tariff rate quotas (TRQ) — a mechanism under which concessional duty or duty-free access of any specified item applies to a limited quantity — their insistence on some sensitive sectors is a challenge. 'The problem lies in wanting India to also open its sensitive sectors. Dairy imports are restricted for two reasons. First, India's dairy farming is at a subsistence level with one or two cows or buffaloes. The livelihoods of millions of farmers are at stake as they could not compete with America's commercial-scale dairy farms. Secondly, the US cattle feed includes non-vegetarian products, something against religious sentiments of Indian consumers,' a third person said. Similarly, India is unable to accept the US demand to allow unrestricted access to American agricultural items such as corn and soybean because Indian law does not permit genetically modified crops. 'America is unwilling to accept an institutional mechanism which would certify that its India-bound agriculture produce are not genetically modified, saying there is a practical problem in segregating GM and non-GM products,' this person said. This person added that solving such issues now require a political directive from the highest levels of the government. 'While majority of issues have been resolved with near consensus, including on removing tariff and non-tariff barriers on most of the items of interest for both countries, certain sensitive matters require political directives from the two leaders. An interim India-US trade deal, mainly involving goods, is possible to conclude before July 9, depending on political resolution of the stalemate,' the second person said. The Indian negotiating team could extend its stay in Washington next week and the two parties would discuss contentious issues, depending on any political directive, according to the first person. The Indian negotiating team led by chief negotiator and special secretary-commerce Rajesh Agrawal was still in Washington on Saturday, indicating that talks may extend into next week. Trade experts said an interim trade deal between India and the US is possible by July 9, provided both respect practical and political sensitivities of each other. Global Trade Research Initiative founder Ajay Srivastava outlined a likely scenario: 'The more likely outcome is a limited trade pact—styled after the US-UK mini trade deal announced on May 8. Under such a deal, India is expected to cut MFN tariffs on a wide range of industrial goods, including automobiles, a persistent demand from Washington. In agriculture, India may offer limited market access through tariff reductions and TRQs on select US products such as ethanol, almonds, walnuts, apples, raisins, avocados, olive oil, spirits, and wine.' 'However, India is unlikely to budge on sensitive sectors. No tariff cuts are expected for dairy products or key food grains like rice and wheat, where farm livelihoods are at stake. These categories are politically and economically sensitive, affecting over 700 million people in India's rural economy,' he added. Srivastava warned that 'the talks may collapse' if the US continues to insist on opening India's core agriculture sectors or allowing entry of GM products. The prudent move for Washington would be to respect Indian sensitivities and forge a deal for stronger strategic cooperation in future, he said, noting that 'agricultural goods account for less than 5% of US exports to India.' Another expert working in a multinational consulting firm said: 'Now it is the time for America to act as India has already given several concessions, making its intent clear for stronger and everlasting economic cooperation with the US.' After a week where tariffs took a back seat to the US strike on Iran's nuclear facilities and the massive tax and spending bill in the US Congress, the Trump administration's trade negotiations have picked up. News agency Reuters reported Washington had sent a new proposal to the EU on Thursday and held talks with Japan on Friday. Both India and Japan are in advanced negotiations.
Scoop
17-06-2025
- Business
- Scoop
On The Occasion Of His Majesty King Charles III's Official Birthday
Marco Rubio, Secretary of State June 14, 2025 On behalf of the United States of America, I want to congratulate His Majesty King Charles III, Her Majesty Queen Camilla, and the people of the United Kingdom on the occasion of His Majesty's official birthday. The United Kingdom is one of America's closest and most capable partners. We are particularly grateful for the United Kingdom's commitment to defending freedom of navigation in the Red Sea, its partnership in preventing Iran from developing or acquiring a nuclear weapon, and the dedication to furthering our economic ties. The Economic Prosperity Deal—a significant milestone in our cooperation—will drive investment, support job creation, and strengthen long-term economic security in both our nations. We will continue working closely with the United Kingdom to advance our common objectives. As we celebrate this special occasion, I extend my best wishes to His Majesty the King, Her Majesty the Queen, and the people of the United Kingdom and wish them peace, prosperity, and good health for the year to come.
Yahoo
10-06-2025
- Business
- Yahoo
Uncertainty Surrounds Future of UK Steel Exports
Via Metal Miner Trump tariffs are back once again putting U.S trade partners in a tough spot. President Donald Trump recently exempted the United Kingdom from his doubling of import tariffs on steel and aluminum into the United States, but only temporarily. While import tariffs from UK steelmakers remain at 25% for now, failure to reach an agreement between the two states on other trade issues by July 9 could see them rise to 50%. This would put the UK in line with the rest of the world. move came after he announced plans to raise the duties on May 30 while giving a speech at US Steel's Mon Valley-Irwin works in Pennsylvania. But like many of the Trump tariffs, this one came with amendments. A presidential proclamation on June 3 noted that the UK would receive 'different treatment' on imports of the metal due to the U.S.-UK Economic Prosperity Deal (EPD, which would temporarily leave the rates at 25%. 'On or after July 9, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminum consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD,' the memo noted. The two states signed the EPD on May 8, effectively axing any duties on UK products entering the United States. Sources have noted that offer prices are already falling due to the increase, and that producers are now competing on prices. Offer prices by mills in the Benelux region were €620 ($705) per metric tonne EXW on May 23 for June rolling and July delivery. That price represents an 8.26% average decline from the €660-670 ($750-760) reported in late April. In response, European Steel Association Director General Axel Eggert called for action by the European Commission over the new tariffs. 'In light of the continuous worsening of the EU steel market outlook, we call on the European Commission to consider emergency trade actions to ensure the stability of the EU steel market, should EU-US negotiations fail and further uncertainty and economic disruptions materialize,' Eurofer quoted Eggert as saying in a June 5 release. Meanwhile, apparent steel consumption in Europe is expected to decline in 2025 for the fourth consecutive year. The latest figures have consumption dropping by an additional 0.9%. Eggert stated that this goes against earlier forecasts of 2.2% growth. 'Recovery is not expected before 2026, and only if positive developments emerge in the global geoeconomic outlook,' he noted. By Christopher Rivituso More Top Reads From this article on
The Star
08-06-2025
- Business
- The Star
UK timeline for US deal is too ambitious
Prime Minister Keir Starmer delivers a statement on Defence spending at Downing Street on February 25, 2025 in London, England. Earlier today Prime Minister Keir Starmer announced a commitment to increase the UK's defence spending to 2.5% of GDP by 2027, along with the goal of increasing it to 3% during the next parliament. Leon Neal/Pool via REUTERS LONDON: Prime Minister Keir Starmer would need President Donald Trump to be 'extraordinarily generous' to meet his ambition of finalising the UK-US tariff deal in two weeks, according to Britain's former top trade negotiator. Crawford Falconer, who led British trade negotiations until late last year, cast doubts on the UK government's efforts to settle remaining issues within a fortnight. While Starmer and Trump announced the so-called Economic Prosperity Deal to great fanfare in early May, numerous details have yet to be finalised. 'My assumption is that they're expecting the United States to be extraordinarily generous and understanding toward them,' Falconer told Bloomberg News. 'Because otherwise I think it would take longer than two weeks.' That assessment will come as a blow to Starmer as he tries to seize on the United Kingdom's status as the first country to agree to a trade deal with Trump this year. Last Tuesday, the White House ramped up the pressure, giving the United Kingdom five weeks to resolve outstanding issues or risk a doubling of US tariffs on British steel and aluminium imports to 50%. Trump's tariffs are already weighing on the United Kingdom's beleaguered steel industry, with some manufacturers saying American orders have dried up. Starmer dismissed concerns in Parliament last Wednesday, telling lawmakers he expected a resolution within a 'couple of weeks'. — Bloomberg
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Business Standard
08-06-2025
- Business
- Business Standard
UK's timeline for US deal too ambitious, says ex-trade advisor Falconer
Trump's tariffs are already weighing on the UK's beleaguered steel industry, with some manufacturers saying American orders have dried up Bloomberg Prime Minister Keir Starmer would need President Donald Trump to be 'extraordinarily generous' to meet his ambition of finalising the UK-US tariff deal in two weeks, according to Britain's former top trade negotiator. Crawford Falconer, who led British trade negotiations until late last year, cast doubts on the UK government's efforts to settle remaining issues within a fortnight. While Starmer and Trump announced the so-called Economic Prosperity Deal to great fanfare in early May, numerous details have yet to be finalised. 'My assumption is that they're expecting the US to be extraordinarily generous and understanding toward them,' Falconer told Bloomberg News. 'Because otherwise I think it would take longer than two weeks.' That assessment will come as a blow to Starmer as he tries to seize on the UK's status as the first country to agree to a trade deal with Trump this year. On Tuesday, the White House ramped up the pressure, giving the UK five weeks to resolve outstanding issues or risk a doubling of US tariffs on British steel and aluminum imports to 50 per cent. Trump's tariffs are already weighing on the UK's beleaguered steel industry, with some manufacturers saying American orders have dried up. Starmer dismissed concerns in Parliament on Wednesday, telling lawmakers he expected a resolution within a 'couple of weeks.' 'The deal we agreed is a good deal for UK steel producers,' the government said in a statement on Friday. 'We will continue to work with the US Commerce Department to implement our agreement as soon as possible so all UK steel producers can start to feel the full benefit.' Key to the deal is Trump's promise to remove all tariffs on British steel exports to the US. Although Trump spared the UK the 50 per cent rate imposed on steel from the rest of the world, he reserved the option to apply it if negotiations haven't concluded by July 9. Remaining hurdles include the Chinese ownership of British Steel, the struggling producer the UK government took over in April. There's also a question about whether the US will require British steel to have been melted and poured in the country. Tata Steel UK can no longer fulfill that provision. It closed down its last blast furnace in 2024 and a new electric arc furnace isn't yet up and running, so the company has been importing steel substrate from abroad. In a statement Friday, Tata Steel UK Chief Executive Officer Rajesh Nair said his company would need to import steel substrate until late 2027. 'It is therefore critical for our business that 'melted and poured in the UK' is not a requirement to access the steel quotas in any future trade deal,' Nair said. British Steel is facing a different set of problems. While the UK government took control of its plants earlier this year to prevent them closing, the company is still legally owned by China's Jingye Group. The general terms of the UK-US deal say the UK must meet 'US requirements' on the 'nature of ownership of relevant production facilities.' That is widely understood to mean that Trump would not grant preferential tariff rates to a company with connections to a strategic rival such as China. 'They will want clarity on what that means,' Falconer said. 'It's difficult for me to believe that the US will be confident that it would give the green light to Jingye, if it is uncertain about what the actual commercial arrangements are for British Steel going forward.' Finding a buyer for the loss-making manufacturer in the near-term seems unlikely. Meanwhile, fully nationalizing British Steel could bring its own problems, since the US generally tries to avoid giving state-owned entities preferential access to its market.
