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India, US ramp up bid to seal trade pact
India and the US aim to expedite a trade agreement after positive talks, despite previous tensions over tariffs and trade demands.
India and the US have agreed to intensify efforts for the early conclusion of a mutually beneficial trade agreement at a recent meeting of senior officials of the two sides, the external affairs ministry said on Friday against the backdrop of efforts to repair bilateral ties hit by US President Donald Trump’s punitive tariffs.
Discussions between an American team led by assistant US trade representative Brenden Lynch and Indian interlocutors in New Delhi this week were “positive and forward looking”, external affairs ministry spokesperson Randhir Jaiswal told a weekly media briefing.
The meeting between Lynch and India’s chief negotiators Rajesh Agrawal marked the resumption of talks between the two sides for a bilateral trade agreement after a hiatus of almost two months. Trump’s decision to double tariffs on Indian goods by imposing a 25% punitive levy over Russian oil purchases and near daily criticism of India’s relations with Russia by senior officials of the US administration had resulted in strains in bilateral relations not witnessed over the past two decades.
Jaiswal said the US team led by Lynch had meetings at the commerce ministry on September 16 to “take forward the ongoing negotiations for a trade deal”. He added, “The discussions were positive and forward looking, covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement.”
The remarks by Jaiswal echoed the stance of the commerce ministry following the talks this week. The US embassy too said Lynch had a “positive meeting” with his counterpart to discuss the “next steps in bilateral trade negotiations”.
India and the US have held five rounds of talks on the bilateral trade agreement after terms of reference for the negotiations were framed in March. The two sides had intended to conclude the first tranche of the pact by October, but hurdles emerged as the US demanded unfettered market access to sectors such as dairy, agriculture and MSMEs. India was unwilling to give in to the demands, with the government setting the protection of farmers and small businesses as “red lines” for the trade negotiations.
US negotiators pulled out of the sixth round of talks scheduled for August in New Delhi amid sharp criticism from US administration officials of India’s purchases of Russian energy and military hardware. A turnaround began this month after Trump and Prime Minister Narendra Modi exchanged positive messages. Trump referred to Modi as a “great prime minister” and both leaders expressed confidence about concluding the trade negotiations.
