Daijiworld Media Network – New Delhi
New Delhi, Feb 11: The United States has quietly revised the wording of its India-US trade deal factsheet, a day after it was released by the White House, softening several key commitments mentioned earlier.
Among the most significant changes is the modification of language stating that India “commits” to buying over USD 500 billion worth of US products. The revised version now says India “intends” to buy more American products, diluting what appeared to be a firm commitment in the earlier document.
The factsheet was released days after India and the US unveiled a framework for a reciprocal and mutually beneficial trade agreement. The original version stated that India had committed to purchasing over USD 500 billion worth of US energy, information and communication technology, agricultural, coal and other products.
However, the version currently available on the White House website omits the word “committed” and replaces it with “intends”. It also removes the term “agricultural” from the list of product categories India plans to buy.
Changes have also been made to the section on tariff reductions. The initial factsheet said India would eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits. The revised version drops the reference to “certain pulses”.
Another key alteration relates to digital services taxes. The earlier document stated that “India will remove its digital services taxes” and had committed to negotiating robust bilateral digital trade rules. In the updated factsheet, the reference to removing digital services taxes has been deleted, with the document now only stating that India has committed to negotiate bilateral digital trade rules.
Last week, India and the US announced a framework for an interim trade agreement under which both countries will reduce import duties on a range of goods to boost bilateral trade. Under the proposed arrangement, the US will lower tariffs on Indian goods to 18 per cent from the current 50 per cent. In return, India will eliminate or significantly reduce duties on all US industrial goods and a broad range of American food and agricultural products.
According to a joint statement, India is planning to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.
Around the time the deal was finalised, US President Donald Trump also removed the 25 per cent additional import duty imposed on India in August last year over its purchase of Russian oil, citing that New Delhi had taken “significant steps” and committed to stopping direct or indirect imports from Moscow.
India and the US are expected to sign the final trade agreement by mid-March this year.