TEHRAN – Iran and India are going to hold talks over a preferential trade agreement (PTA) in near future aiming to withstand the effect of the U.S. sanctions on Iran on the two sides’ trade.

The first round of formal negotiations on the PTA will be held by August, Indian news agency Economic Times reported on Thursday citing people with knowledge of the matter.

“We are making our wish lists,” said one of the officials. “The first round of text-based negotiations will take place in a month or two.”

Talks on a PTA began two years ago, then slowed because Iran had concerns about India’s indirect tax structure.

Iran has sought details on India’s tax structure before and after the imposition of GST on around 100 products including urea, various dry fruits and chemicals.

Iran’s major exports to India are oil, fertilizers and chemicals while imports include cereals, tea, coffee, spices and organic chemicals.

During Iranian president Hassan Rouhani’s visit to India in February, the two sides decided on a text-based PTA as well as conclusion of a bilateral investment treaty in a fixed time frame.

EF/MA