India and the USA are said to be closing in on the trade deal but some sticking points remain, according to those familiar with the developments. Currently, negotiators from the two countries are in the thick of bilateral trade talks aimed at finalising a deal before the US imposes country-specific reciprocal tariffs on imports from 57 countries, including India, starting July 9.
India is pushing for the US to roll back all current and planned retaliatory tariffs, including a 26% reciprocal tariff, comprising a 10% duty that took effect on April 5 and an additional 16% set to begin from July 9.
The interim India-US trade deal is likely to be announced this week.
Sources say negotiators are hopeful for closing the deal very soon but there will be no compromise so far as the interests of Indian farmers are concerned. There seem to be sticking points, including those related to market access in agriculture, genetically modified (GM) crops, and dairy sectors, before the provisional agreement—the first step for establishing a comprehensive trade partnership between India and the US—is unveiled
The US is said to be seeking market access for GM crops and cattle feed, which is not acceptable to India, they add
Meanwhile, describing India as a strategic ally, the White House also said that the US-India trade agreement was nearing completion. President Donald Trump shares a “very good relationship” with Prime Minister Narendra Modi, White House press secretary Karoline Leavitt added while briefing media persons on Monday.
“Yes, the President said that last week (that the US and India are very close to a trade deal), and it remains true. I just spoke to our Secretary of Commerce about it. He was in the Oval Office with the President. They are finalising these agreements, and you will hear from the President and his trade team very soon when it comes to India,” Leavitt was quoted as saying.
External Affairs Minister S Jaishankar, who is currently in the US for the QUAD Foreign Ministers’ Meeting, also expressed hope of arriving at a trade deal with the US “very soon” in an interview.
Comprising Australia, India, Japan, and the US, QUAD is focused on promoting a free, open, and resilient Indo-Pacific. Meanwhile, Trump will participate in the upcoming QUAD Summit in New Delhi. “For the next meeting of QUAD, PM Modi invited President Trump to India. While accepting the invitation, President Trump said that he is excited to come to India,” Foreign Secretary Vikram Misri was quoted as saying.
