PM Modi and US Vice President JD Vance announce Terms of Reference for a bilateral trade agreement on 22 April. The terms of reference is appear as crucial step forward, and establish the ‘roadmap for mutually beneficial, multi-sector Bilateral Trade Agreement negotiations’. It aims to reduce trade barriers and enhance market access for long term benefits. As per statement, “ it goals for the US include market access, reduce tariff and non-tariff barriers and negotiate set of additional commitments to gain long-term benefits.”
PM Narendra Modi set ‘defining partnership’
PM greet Vance during his India Visit, and held talks. Both countries has set ‘ defining partnership’ for future. PM said, “ We will review the fast-paced progress after my visit to US and meeting with Trump. We commits to mutually beneficial cooperation in trade, defence, technology, energy and people-to-people exchanges.” US Trade Representative Jamieson Greer welcome the Terms of Reference announcement by Narendra Modi. It build roadmap for the negotiations’ on reciprocal trade.
Goal of bilateral trade agreement
The aim of bilateral trade agreement is to drive transformational change in various pillars of cooperation. It commits to results-driven agenda with outcomes this year to check level of trust for mutually beneficial partnership.
US has mentioning ‘significant trade barriers’ with India in history. However, It also note that US ran $45.7 billion goods trade deficit with India in 2024, that is 5% higher over 2023. India offers the tariff concessions to America in history and PM Modi visit to the US in Feb, number of tariff reductions are implemented.
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