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Govt Seeks Industry Inputs on Non-Tariff Barriers Ahead of US Trade Talks

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Author: DISHA PRAFUL SUKHANI
Govt Seeks Industry Inputs on Non-Tariff Barriers Ahead of US Trade Talks

Commerce Department gathers fresh details on quality standards, licensing norms, and testing rules before upcoming bilateral trade negotiations with the US

Ahead of the visit of the US trade negotiating team to India next week, the Commerce Department has started compiling updated information on various non-tariff barriers (NTBs) affecting trade with the United States and other major trading partners. The exercise comes as India prepares for further discussions on the proposed bilateral trade agreement (BTA).

The department has sought inputs from industry stakeholders regarding NTBs related to quality standards, technical regulations, licensing requirements, and testing norms that restrict market access despite lower tariffs. Similar details have also been requested for trade with the UK, the EU, and New Zealand, with which India is expected to implement or finalise free trade agreements (FTAs).

US Trade Team to Visit New Delhi

“The US team led by the chief negotiator will be in New Delhi to take forward the talks for the bilateral trade agreement (BTA). It is important for India not to just gain tariff concessions but also get the various NTBs addressed to the best extent possible as they can impede market access even when tariffs are zero. That is why the Commerce Department sought inputs from the industry once again on these measures,” a source tracking the matter told businessline.

Industry representatives have been asked to specify the nature of the barriers or the relevant regulatory and technical requirements, along with examples of how these measures are affecting market access. According to the source, clearer identification of the NTBs would help negotiators raise the concerns more effectively during discussions.

Industry Concerns on Regulatory Measures

Some NTBs affecting Indian exporters to the US include high approval costs for sectors such as pharmaceuticals, complex certification requirements, regulatory delays, stringent sanitary and phytosanitary measures for agricultural products, and technical barriers linked to procurement policies such as the ‘Buy American’ policy that restricts access to government contracts.

“The more specific is the identification of the NTB and the way it is impeding market access, the better can negotiators take up the problems with the other team,” the source explained.

The US has also identified several NTBs faced by American businesses in India in the latest 2026 National Trade Estimate report on foreign trade barriers. The report referred to import bans, restrictions, licensing requirements, mandatory Quality Control Orders, customs barriers, price controls on medical devices, and mandatory domestic testing and certification requirements for equipment.

India Maintains Cautious Approach

The United States has indicated that it is seeking an early interim trade deal with India and may push negotiations towards a final conclusion during next week’s discussions.

India, however, is expected to remain cautious and avoid taking commitments until the tariff situation in the US becomes clearer. Following the US Supreme Court’s February 20 verdict invalidating reciprocal tariffs imposed under the Trump administration on trade partners including India, uncertainty continues around future tariff measures.

 

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