In a bid to secure a more favorable trade deal than other Asian economies, India is reportedly set to host the top U.S. trade diplomat for a two-day discussion.
U.S. Trade Representative Jamieson Greer is scheduled to visit India on Tuesday to finalize a crucial trade agreement, reported Reuters on Monday. This follows a meeting between India’s Prime Minister Narendra Modi and President Donald Trump on June 17, on the sidelines of the G-7 meeting, marking their first interaction in over a year.
India is keen on gaining a competitive tariff advantage over other Asian nations, including ASEAN members such as Vietnam. India’s Trade Minister Piyush Goyal has voiced India’s ambition to secure a comparative advantage that would benefit its exporters. “The faster, the better,” said Goyal.
Goyal is hopeful of finalizing the deal before July 24, when Washington’s temporary 10% tariff on trading partners is due to expire. He also underscored the importance of assurances against new tariffs post-deal, as per the report.
Greer’s office told the publication that the goal of the talks is to establish “fair, balanced, and reciprocal trade.”
Legal, Diplomatic Hurdles Persist
The upcoming talks follow an interim trade agreement announced by Trump in early February, which aimed to lower tariffs between the U.S. and India. A proposed U.S.-India trade deal set 18% tariffs on Indian goods, giving India an edge over competitors like Vietnam and Bangladesh.
However, the Supreme Court ruled Trump’s sweeping International Emergency Economic Powers Act (IEEPA) tariffs unlawful later that month, and impeded the path to the final deal between both nations. Trump immediately announced a new 10% global tariff following the unfavorable ruling.
In June, as part of the investigation under the Section 301 unfair trade practices, the Trump administration proposed additional tariffs on imports from 60 economies, including India, due to their failure to address trade in goods produced with forced labor.
The deaths of three Indian sailors in U.S. Navy attacks on commercial vessels in the Gulf have heightened diplomatic tensions between India and the U.S., adding another layer of uncertainty to ongoing trade negotiations.
In March, U.S. Deputy Secretary of State Christopher Landau emphasized the importance of a balanced and mutual trade agreement with India, stating that the U.S. would not repeat the mistakes made with China. Landau expressed optimism about the ongoing trade discussions, indicating that a bilateral trade agreement was close to the “finish line”.
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