The India-U.S. trade deal discussions are gaining traction once more. The agreement, which had lingered due to multiple issues, appears to be back on track. Reports suggest that the deal's progression signals surfaced shortly after a constructive conversation between U.S. President Donald Trump and Prime Minister Narendra Modi. The main U.S. negotiator is set to touch down late Monday night in India. Originally, the American team was expected in August, but the meeting was aborted over tariff disputes.
Brendan Lynch Arrives from America!
Intimate talks on social media between Trump and Modi have revitalized the India-U.S. trade discussions. According to a senior Commerce Ministry official via PTI, negotiations for a trade agreement between the nations are back in motion. U.S. lead negotiator Brendan Lynch is arriving in India on a one-day visit Monday night (September 15). As the Deputy U.S. Trade Representative for South and Central Asia, he will formally discuss the trade deal with Rajesh Agrawal, Special Secretary of the Commerce Department, on Tuesday.
India and the U.S. have conducted five rounds of bilateral trade negotiations, with the sixth round scheduled for Tuesday. Brendan Lynch oversees U.S. trade policy development with 15 nations, including managing the U.S.-India Trade Policy Forum (TPF).
Tariff Tensions Delayed August Talks
Earlier, the American visit scheduled from August 25 to 29 to address unresolved trade deal issues was canceled due to heightened tensions after the United States implemented additional tariffs on Indian products over its Russian oil and weapon purchases. The tariffs were increased to 50%, set to take effect on August 27, with the rationale being India's crucial role in funding the Ukraine conflict through these purchases.
Trump-Modi Talks Ease Tensions
Last Tuesday, President Trump took to social media to reaffirm his friendship with PM Modi, expressing confidence in the successful resolution of ongoing trade talks between Washington and Delhi. Trump eagerly anticipated further discussions with his cherished friend, Prime Minister Modi, in the coming weeks.
In response, Prime Minister Modi acknowledged President Trump’s sentiments, appreciating the positive assessment of bilateral relations. Modi emphasized the strong, future-focused comprehensive, and global strategic partnership between India and the United States.
Where's the India-US Trade Deal Stalled?
The stagnation in the India-U.S. trade talks revolves around Trump's insistence on opening the Indian market further to American goods while seeking tariff concessions on specific items. These include industrial products, electric vehicles, petrochemicals, wine, dairy, apples, tree nuts, and genetically modified crops. Conversely, India remains steadfast on safeguarding its agricultural and dairy sectors, opposing any concessions. Notably, India has historically abstained from offering tariff relaxation on dairy products in any free trade agreements, keeping them out of the deal's scope.
