**US and India Progress Towards New Bilateral Trade Agreement**
The United States and India are advancing towards a new Bilateral Trade Agreement (BTA) following the announcement of finalized Terms of Reference (TOR) for the deal. US Trade Representative Jamieson Greer confirmed the TOR, stating, “I am pleased to confirm that USTR and India’s Ministry of Commerce and Industry have finalized the Terms of Reference to lay down a roadmap for the negotiations on reciprocal trade.”
Greer emphasized the need for balance in the trade relationship, noting, “There is a serious lack of reciprocity in the trade relationship with India. These ongoing talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers.” This announcement follows a meeting between US Vice President JD Vance and Indian Prime Minister Narendra Modi, where Vance expressed his eagerness to strengthen ties between the two nations.
The TOR outlines a clear framework for negotiations, which were initiated after President Trump’s meeting with Prime Minister Modi in February 2025. The BTA is part of a broader initiative called “Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology,” aimed at enhancing military and economic relations between the US and India.
In terms of trade imbalances, the United States has implemented a 26% reciprocal tariff on imports from India, alongside a 10% baseline tariff on all US imports. Certain sectors, including pharmaceuticals and energy commodities, are exempt from these tariffs. The USTR has highlighted ongoing challenges related to high tariffs and restricted market access for US products, with a reported $45.7 billion goods trade deficit with India in 2024.
Despite the complexities of the current trade landscape, the finalized TOR presents an opportunity for improved cooperation between these two influential democracies.
**FAQ**
**What is the purpose of the Bilateral Trade Agreement between the US and India?**
The BTA aims to enhance trade relations by establishing a framework for negotiations that promote reciprocity, open new markets for American goods, and address unfair trade practices.