Important information has emerged regarding the deal between the US and India. US trade representative Jameson Greer stated that the trade agreement between India and the US will not be concluded in the near future. He noted that although both sides have identified a list of goods that could be subject to negotiations, finalizing this deal will require time.
This statement comes against the backdrop of Commerce and Industry Minister Piyush Goyal asserting just a week ago that the trade agreement between India and the US was 'fully agreed upon.'
According to a Reuters report, Greer said that during the meeting of trade ministers at the G20 summit in Milwaukee, there was a 'very constructive dialogue' with Goyal. He also emphasized that officials from both sides continue to engage in dialogue. Greer expressed doubt about a quick outcome but added that they have identified all hindering issues and are making efforts to resolve them.
Meanwhile, Piyush Goyal had stated that trade between America and India would only be possible if America provided a reasonable competitive advantage in the American market for India. At the event, he stressed the need to obtain a comparable competitive advantage over competitors to accelerate the implementation of the agreement. Furthermore, he mentioned that India has completed nine free trade agreements, and the deal with America is almost ready.
An analysis of the trade deal negotiations between the two countries shows that India insists that America should set lower tariffs compared to other competing countries and grant India priority access to the American market. On the other hand, America is negotiating the admission of some of its agricultural products into the Indian market. It is likely that these two points are the reason for the obstacle that has already been identified.
It is worth noting that in February, the completion of the development of the trade structure for the first phase of the bilateral trade agreement was announced, but changes in the tariff structure required further discussions. Amid geopolitical tensions and unexpected announcements of duties, India is expanding its network of free trade agreements (FTAs).