New Delhi [India], March 21 (ANI): Amid tariff concerns, the Ministry of External Affairs on Friday said that India and the US are making significant strides in their bilateral trade negotiations, with the aim of expanding trade, enhancing market access, and reducing tariff and non-tariff barriers.

In a weekly media briefing, MEA spokesperson Randhir Jaiswal said that the two governments are actively working to build a framework for the Bilateral Trade Agreement (BTA), which will be a multisector agreement beneficial to both nations.

'India and the US are in the process of taking bilateral trade negotiations forward. The two governments are actively working to build a framework for the BTA, which would aim to expand trade, enhance market access, reduce tariff and non-tariff barriers...,' said Jaiswal signalling a possible breakthrough in ongoing negotiations.

This development follows the 14th Ministerial-level meeting of the India-US Trade Policy Forum (TPF), which Minister of Commerce and Industry Piyush Goyal and US Trade Representative Ambassador Katherine Tai co-chaired.

The TPF has been instrumental in forging robust bilateral trade ties and enhancing the two countries' overall economic relationship.

The Indian government remains engaged with the US administration at various levels to ensure a mutually beneficial agreement. With the BTA, India and the US are poised to take their trade relationship to the next level, fostering growth, innovation, and cooperation between the two nations.

'Govt of India remains engaged with the US administration at various levels to arrive at a mutually beneficial multisector bilateral trade agreement,' he added.

The US-India trade relationship has been growing steadily, with annual bilateral trade in goods and services reaching around USD 200 billion. However, there is still significant potential for growth, and the BTA aims to tap into this potential.

The BTA's key areas of focus include reducing tariff and non-tariff barriers, enhancing market access, expanding trade, and promoting cooperation in critical sectors.

Notably, the US government issued a memorandum on February 13, emphasising the need for reciprocal trade arrangements with its international partners. The memorandum tasks the US Commerce Secretary and the United States Trade Representative (USTR) with investigating potential harm caused to American interests by non-reciprocal trade agreements.

Tariffs, a key aspect of international trade, refer to import duties imposed by governments on foreign goods entering the country. These duties are paid by companies importing goods, and their revenue goes to the government.

Meanwhile, during Prime Minister Narendra Modi's visit to the US in February 2025, both sides expressed interest in negotiating a mutually beneficial, multi-sector BTA.

The MEA spokesperson also mentioned Commerce and Industries Minister Piyush Goyal's recent visit to the US from 3-7 March, during which time he met with his US Commerce Secretary, Howard Lutnick, and his US Trade Representative, Jamieson Greer, to advance discussions on the agreement.

His visit to the US followed US President Donald Trump and PM Modi's plans to negotiate the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025.

A key aspect of the BTA is its focus on supply chain integration between India and the US. The agreement could pave the way for increased trade in goods and services by reducing barriers and increasing market access, benefiting both economies.

While India has trade agreements with over 50 countries, including the Asia Pacific Trade Agreement and the South Asia Free Trade Agreement, a BTA with the US could have significant implications for India's economy.

As negotiations progress, India will likely push for greater market access for its goods and services, while the US may seek increased agricultural exports to India. The outcome of these negotiations will be closely watched, as it could set the tone for India-US trade relations in the years to come.

US President Donald Trump had earlier targeted India, saying 'they have the highest tariffs' and 'it is a hard place to do business'.

In February, US President Donald Trump announced that he would soon impose reciprocal tariffs on countries like India and China, asserting that the United States would charge the same tariffs these nations impose on American goods.

Trump said, 'We will soon impose reciprocal tariffs -- they charge us, we charge them. Whatever a company or a country, such as India or China, charges, we want to be fair; hence, reciprocal.'

He added, 'We have never done that. We were getting ready to do it until Covid hit.'

Trump also specifically targeted India's tariffs on automobile imports, saying, 'India charges us auto tariffs higher than 100 per cent.'

While addressing a joint session of the US Congress, Trump said that the reciprocal tax will kick in on April 2. He had said that the US has been ripped off for decades by nearly every country on earth and vowed not to 'let that happen any longer.'

He also discussed the tariffs imposed by the European Union, China, Brazil, and Mexico and announced that the US would impose tariffs on other nations based on their actions toward the US.

Further, the MEA spokesperson also discussed Tulsi Gabbard, US Intelligence Chief, who recently met with Indian officials, including Defence Minister Rajnath Singh, External Affairs Minister S Jaishankar, and National Security Adviser Ajit Doval.

He said that the meetings focused on strengthening security and defence cooperation between India and the US.

During the discussions, the Indian side expressed concerns about anti-India activities in the US, particularly in Washington.

'She met with the Defence Minister Rajnath Singh, and they discussed security and defence cooperation. She also met with External Affairs Minister S Jaishankar and National Security Adviser Ajit Doval. During the discussions, the Indian side expressed concerns about anti-India activities in the US, particularly in Washington. The Indian officials conveyed their expectation that the US would take necessary actions to address these concerns,' said Jaiswal.

Gabbard's visit to India was seen as a significant step in enhancing bilateral ties between the two nations. Both countries are committed to combating terrorism and enhancing maritime and cyber security cooperation. The meetings between Gabbard and Indian officials demonstrated the shared commitment to strengthening their strategic partnership. (ANI)