The long-running India-US trade deal negotiations are now very close to the decisive stage, the ‘finishing line’. Foreign Minister S. Jaishankar hinted at this on Saturday. According to him, the two countries have resolved most of the complex issues, and the agreement could be sealed soon. Meanwhile, according to a senior government official, the US has assured India that the proposed deal will impose lower tariffs on Indian products than other competing countries. This will give Indian exporters a significant advantage in the US market. This is, in a way, the US bowing to India. Washington is known for its tough trade conditions. Despite this, the world’s largest market’s assurance of lower tariffs and special benefits to India compared to competitors is a testament to India’s growing economic diplomatic strength.
Significant progress has been made on the proposed India-US trade deal. Negotiations are now very close to the ‘finishing line’. Foreign Minister S. Jaishankar, speaking at the HT Leadership Summit, said: Jaishankar stated that the two countries have resolved most of the tariff-related issues. Work is now underway to address some final concerns. He clarified that India seeks a balanced and beneficial agreement, one that gives it a significant advantage over competitors with similar economies. A senior government official also confirmed that the US has assured India of lower tariffs than its competitors. However, the actual benefits will depend on the final tariff framework and the results of the second investigation by the US Trade Representative (USTR).
The negotiations, which have been ongoing for nearly two years, have been divided into two phases. The first phase is targeted to be completed by the end of the current fiscal year. This initial package of the deal will cover only trade in goods. Services-related issues will be discussed in the second phase, a comprehensive agreement. The final deal will be drafted in the form of legal documents and contracts, including a dedicated chapter on customs and ease of doing business. According to Jaishankar, it took time to carefully review each tariff line because it involves jobs. The United States is India’s largest market. Therefore, this deal will prove extremely beneficial for the country.
There is speculation that Prime Minister Narendra Modi and US President Donald Trump will meet on the sidelines of the G-20 summit in Miami on December 14-15 next month. A formal announcement of the deal could be made after this. Earlier this year, the two countries had finalized the framework for the deal. However, the process was complicated by some US trade investigations and a new US provision imposing tariffs of up to 100% on countries purchasing Russian oil. However, India is currently exempt from these tariffs. According to Commerce Secretary Rajesh Aggarwal, a US team visited India on November 2 and 3 to accelerate negotiations. Important discussions on customs and trade facilitation were also held during this period.
Over the past few weeks, positive signals have emerged from both New Delhi and Washington regarding the deal. Last month, US Secretary of State Marco Rubio and US Ambassador to India Sergio Gor, who visited Mumbai, stated that the two sides were close to finalizing the deal. Foreign Minister Jaishankar also stated that the remaining issues relate more to changes on the US side than to India’s. They will be resolved soon. Earlier, Union Commerce Minister Piyush Goyal expressed confidence that India has secured a remarkable deal. This agreement with the US will be one of the best trade agreements ever.