India–US Trade Pact Cuts Duties on Wines and Dry Fruits

American wines, spirits and dry fruits are set to become cheaper in the Indian market as India eases import duties under the first phase of a bilateral trade agreement with the United States. The move is expected to lower consumer prices and strengthen commercial ties between the two economies.

Framework Agreement and Timeline

and the United States have finalised the framework for the initial phase of a bilateral trade pact aimed at boosting two-way trade. The framework will be converted into a legally binding agreement, likely to be signed by mid-March. Duty concessions will take effect from the date of implementation, with some tariffs eliminated immediately and others phased out over time.

Goods Covered Under Duty Concessions

Under the pact, India will eliminate or reduce tariffs on all US industrial goods and a wide range of American agricultural and food products. These include dried distillers’ grains, red sorghum used as animal feed, tree nuts, fresh and processed fruits, soybean oil, and alcoholic beverages such as wine and spirits. Walnuts, almonds, pistachios and select lentils will also enjoy lower duties. High-end cars and motorcycles from the US will receive tariff concessions as well.

Addressing Non-Tariff Barriers

Both sides have agreed to address long-standing non-tariff barriers affecting bilateral trade. India will streamline restrictive import licensing procedures impacting US medical devices and Information and Communication Technology goods, which are critical for data centres and industrial activity. Similar steps will be taken to ease barriers in food and agricultural imports.

Important Facts for Exams

• The agreement is a phased bilateral trade pact between India and the United States.
• Duty elimination applies to select US industrial, agricultural and alcoholic products.
• Non-tariff barriers on medical devices and ICT goods are to be addressed.
• Some concessions will be quota-based or phased over time.

Reciprocal Benefits and Safeguards

Commerce and Industry Minister said market access has been opened in a calibrated manner to protect farmers and MSMEs, with minimum import prices on sensitive items like apples. In return, Indian exports to the US, including spices, tea, coffee, cashew, coconut products, fruits, nuts and processed foods, will attract zero reciprocal tariffs, expanding market access for Indian producers.