WASHINGTON, D.C. (TIP): India and the United States have made significant progress in trade negotiations following US Trade Representative Jamieson Greer’s two-day meeting with Union Commerce Minister Piyush Goyal in New Delhi on June 23-24, but experts say key differences continue to stand in the way of a final agreement, according to an ANI report.
Wendy Cutler, Senior Vice President at the Asia Society Policy Institute (ASPI), said that “Despite substantial progress made in recent meetings, concluding a trade deal with India is proving illusive.”
She added, “Each side has its own priorities and redlines which continue to prevent a successful conclusion. Moreover, developments over the last year have produced a serious trust deficit on the part of Delhi, which makes wrapping things up more complicated.”
According to Cutler, India is seeking greater clarity on tariff arrangements before finalizing any agreement. She said, “India very much wants a preferential tariff edge over its competitors, so it is in no hurry to conclude until there is further clarity on tariff rates and product exclusions. Moreover, it is seeking assurances from Washington on no further tariff hikes, which most likely is a bridge to far for the Trump team.”
While welcoming reports of progress, she cautioned that the final stage of negotiations is often the most difficult. She said, “Being very close on concluding a trade deal is welcome news, but it is typically the final remaining matters that are the toughest to resolve, meaning expect further rounds between negotiators.”
Farwa Aamer, Director of South Asia Initiatives at ASPI, said sustained engagement from both governments points to the possibility of an agreement, though challenges remain.
She said, “The sustained effort from both sides shows promise toward the deal, but not without a fair share of speed bumps and lingering uncertainty.”
She noted that broader geopolitical factors have influenced the negotiations. She added, “The wider geopolitical divergences between New Delhi and Washington have also impacted the way at least India has been coming to the negotiating table, cooperative but more assertive. There is also a lot of domestic pressure on the Indian leadership to secure a balanced and fair deal so that tracks.”
Aamer said an interim agreement could provide a boost to the broader bilateral relationship. She said, “If the talks do come to fruition and an interim deal is reached within the anticipated timeframe, it would certainly help the otherwise strained US-India ties and lend some momentum to other areas of cooperation. Both countries will benefit from a comprehensive deal.”
She also highlighted India’s efforts to diversify its trade partnerships. She added, “It is important to note how India is proactively engaging other trade partners in tandem. US trade policy has fast-tracked the hedging behavior, and India recognizes the need to expand the trade portfolio, aiming to reduce vulnerabilities where possible.”
(Source: ANI)
Death toll in Venezuela earthquakes reaches 235, around 4,300 injured
Eetha teaser: Fans crown Shraddha face of women-led cinema
Analysts estimate that the tariffs could shave 0.5 per cent off India’s GDP NEW DELHI/WASHINGTON, D.C. (TIP): Signaling a potential thaw in trade relations, a team of senior Indian officials will visit the US this […]
With Indo-U.S. trade deal off, it is time India reorients its global economic engagement India’s largest trading partner, and one with whom it has a significant trade surplus, the U.S., is no longer interested in […]
OTTAWA / NEW DELHI (TIP): After the exchange of visits of foreign ministers, the Indian and Canadian trade ministers reaffirmed the strength and continuity of the India–Canada economic partnership and reiterated their commitment to deepening […]
Your email address will not be published.
The Indian Panorama is an Indian American Weekly E-Newspaper published from New York for Indians, Americans, and NRI’s across the world available online.
© The Indian Panorama
Don’t miss out on all the happenings around the world
Leave a Reply