US President Donald Trump has been optimistic about the progress of trade talks with India, hinting that a long-sought interim trade deal between the two countries could be signed off in the near future.
Addressing journalists, Trump equated the envisaged deal with India with the recently concluded trade agreement with Indonesia.
He added that American companies had obtained full access to markets in Indonesia under that agreement, and such provisions are being weighed in the current negotiations with New Delhi.
We made a deal with Indonesia. We have access into Indonesia," Trump declared, continuing, "That's probably the greatest part of the deal. India is essentially working along that line. We are going to have access to India.
The agreed deal with India is likely to provide US businesses with enhanced access to Indian markets while maintaining tariffs below 20 percent — the key issue in negotiations. The United States has already published notices to a number of countries specifying new mutual tariff rates going into effect on August 1.
India, though, is going slow. While the Indian government is optimistic that a deal will be reached on time to prevent the effects of these retaliatory tariffs, it has insisted that any agreement will hinge on careful negotiations, not ad hoc timetables.
Commerce Minister Piyush Goyal had previously underscored that India will sign the agreement only when it perfectly aligns with national interest and all terms are amicably settled. "India does not sign any trade agreement on the basis of timelines," Goyal added.
An Indian Commerce Ministry delegation is in Washington for the next round of negotiations, which center on priority issues such as tariffs on steel, aluminium, and cars. India is especially seeking elimination of a 26 percent surcharge and reduction in US duties on steel (presently at about 50 percent) and cars (about 25 percent).
Another controversial issue in the talks is the request by the US for duty waivers on agriculture and dairy products — an arena where India has long stood firm against offering concessions under its free trade agreements.
President Trump had originally proposed increased tariffs on some nations, including India, on April 2. They were delayed initially to July 9 and later once again to August 1, giving both parties additional time to reach a compromise.
With negotiations heating up and both sides evidencing a desire to come to agreement, there are increasing hopes that the interim deal will become reality imminently, opening the door to a more sweeping trade pact between the two democracies.
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