India's Foreign Minister S. Jaishankar announced on Wednesday that India and the United States are nearing an agreement on a trade deal, negotiations for which have been ongoing for over eighteen months. His statement has once again raised optimism regarding the swift successful conclusion of the current discussions.
Earlier this month, Finance Minister Nirmala Sitharaman had pointed to a deadlock in the talks, noting that both sides had reached a point where further concessions would be difficult. However, Jaishankar emphasized that the parties continue to resolve differences.
Speaking at the Bloomberg New Economy Forum, he noted: 'I think we are waiting for a decision on several issues.' Jaishankar added that the Indian Minister of Commerce, the US Trade Representative (USTR), and other officials are involved in discussions to advance the bilateral trade agreement.
He explained that when negotiating with an economy of the size of the US, one part of the work involves internal agreements with the US, and the other involves competitiveness relative to other economies. Jaishankar admitted that the second part remains not entirely clear, as not all agreements have been reached, but he believes the issue is moving towards a 'landing point.'
Earlier this month, USTR representative Jameson Green stated that the US and India were working to finalize an agreement, but it was not inevitable. Jaishankar also touched upon Washington's new approach to economic engagement. He noted that the entire tariff dispute is linked to access to the American economy and the reindustrialization of America. Consequently, every major economy is negotiating with the US on this matter, and in the case of India, the negotiation process is at a rather advanced stage.
