Efforts on to push bilateral trade with Russia: FIEO

The Federation of Indian Export Organisations or FIEO is working to boost trade with Russia. The aim is to increase exports and create a balance in the bilateral trade. Currently, the trade between the two nations stands at $11 billion. An agreement signed last year will help customs recognize secure businesses.

Despite trade tensions, the US and India are quietly working to resolve trade barriers. India is considering easing import rules for US apples by replacing strict certifications with simpler declarations. Simultaneously, discussions are underway to finalize a Regional Partnership Agreement for shrimp trade, aiming to reduce rejections and expedite clearances, potentially by year-end.

Piyush Goyal is set to visit the US to advance discussions on the proposed bilateral trade agreement, with meetings scheduled with key US officials. Negotiations will address retaliatory duties, market access, and intellectual property concerns. India may resolve the WTO dispute through the BTA, using its retaliation rights as leverage in the trade deal.

India’s coal imports witnessed a 9.2% decrease during April-February 2024-25, reaching 220.3 MT, resulting in substantial foreign exchange savings. Despite a rise in coal-based power generation, imports for blending by thermal plants significantly dropped by 38.8%. This reflects India’s commitment to self-sufficiency through initiatives boosting domestic coal production, which grew by 5.45%.

India has reserved its right to impose retaliatory duties on specific American products under WTO norms due to US steel and aluminum tariffs, potentially resolving the issue through ongoing bilateral trade agreement negotiations. A similar notification was issued to the WTO against the EU’s steel safeguard measure, which was never implemented.

India has proposed retaliatory duties on 29 American products, including apples and almonds, in response to US tariffs on steel and aluminum. New Delhi communicated to the WTO that these US measures impact $7.6 billion of Indian imports, resulting in $1.91 billion in duty collections.

A US-China trade deal, featuring tariff reductions, presents both challenges and opportunities for India. While it could intensify competition in some markets, India can leverage its strengths in sectors like pharmaceuticals and IT. Exporters emphasize the need for proactive engagement with the US to secure preferential trade access, especially with ongoing BTA negotiations.

India and the EU are currently engaged in FTA negotiations, addressing non-tariff barriers like CBAM, EUDR, and India’s QCOs. While aiming to finalize the agreement by year-end, discussions include the possibility of a single-phase conclusion, mirroring the UK deal.