India’s Tariff Negotiations with US, Switzerland & Australia

Ahead of US President Donald Trump’s 1 Aug tariff deadline, India and the US are close to finalizing a deal. According to Indian Commerce and Industry Minister Piyush Goyal, talks between the countries for a bilateral trade agreement are progressing at a ‘fast pace.’ The Indian side has put forward a proposal that touches nearly USD 150-200B worth of goods trade between the two countries . India has maintained a firm stance on its key concerns, especially in the agriculture and dairy sectors. Sources have confirmed that there will be no concessions on critical items like wheat, rice, maize, dairy products, and genetically modified crops. India has clearly stated that these sensitive areas will remain off-limits in any trade agreement. All these areas affect Panjab because agriculture and dairy are the state’s main growth engines. However, Trump has said India could face an additional 10% tariff alongside other members of BRICS—a bloc of emerging economies he has labelled 'anti-American'. Meanwhile, Switzerland has officially completed the ratification process for a landmark trade partnership between India and the European Free Trade Association. Swiss Ambassador to India Maya Tissafi conveyed that the Trade and Economic Partnership Agreement is expected to come into force in October. The agreement, signed after nearly 16 years of negotiations, is poised to reduce trade barriers and streamline customs procedures by opening up the Indian market to Swiss exports. Under the mega trade pact, the EFTA States plan to invest USD 100B in India over the next 15 years. This investment is expected to create 1M jobs in India but needs to be studied closely to see its effect on the dairy industry. Concurrently, India has rejected Australia's push for deeper tariff cuts on dairy and alcohol, hampering efforts to conclude the second phase of a trade pact by year-end. An interim trade pact signed in 2022 lowered tariffs on a range of goods, but negotiations on a broader Comprehensive Economic Cooperation Agreement covering goods, services and visas have slowed, with dairy and wine emerging as key sticking points (earlier coverage).