© Reuters. FILE PHOTO: Man holds the flags while people take part in the 35th India Day Parade in New York

By Aditya Kalra and Neha Dasgupta

NEW DELHI (Reuters) - The United States wants India to buy at least another $5-6 billion worth of American farm goods if New Delhi wants to win reinstatement of a key U.S. trade concession and seal a wider pact, four sources familiar with the talks told Reuters.

U.S. President Donald Trump cited trade barriers last year when removing India from its Generalized System of Preferences (GSP) program that allowed zero tariffs on $5.6 billion of exports to the United States. In retaliation, India slapped higher tariffs on more than two dozens U.S. products.

Ahead of a Trump visit to New Delhi to meet Prime Minister Narendra Modi next month, negotiators on both sides are hammering out terms for a trade deal that would include New Delhi rolling back higher tariffs on some farm goods such as almonds, walnuts and apples, one of the sources said.

Both governments had hoped to work out a limited trade deal last year, but struggled to reach an agreement.

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Originally published by:

Reuters

January 24th, 2020

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