New Delhi: A team of negotiators from the Trump administration led by Deputy US Trade Representative Rick Switzer plans to travel to India next week to continue talks on a trade agreement, according to a US official.
The official, who confirmed the plans on condition of anonymity, did not offer further details about the delegation’s visit.
The government of Prime Minister Narendra Modi has been eager to finalize an initial deal with President Donald Trump’s administration to lower the 50% tariffs on Indian goods, which have hampered key sectors of the country’s economy.
India’s Ministry of Commerce and Industry didn’t respond to an emailed request for comment Friday. Last week, Indian Commerce Secretary Rajesh Agrawal had expressed optimism the two nations could “find some solution this calendar year.”
Washington and New Delhi have been working on a trade understanding that would be implemented in multiple stages, with the first phase addressing the retaliatory duties Trump imposed on products from India. The 50% rate includes charges the US president applied in retaliation for India’s purchases of Russian oil.
After tensions flared earlier this year, Trump has spoken more positively about Modi and praised his decision to scale back imports of crude from Russia. That’s opened the door to potential tariff relief.
Russian President Vladimir Putin arrived in India on Thursday for a two-day visit expected to showcase the energy and security ties that have drawn Washington’s ire.
What Bloomberg’s Analysts Say
The clock is ticking for Washington and New Delhi to seal a trade framework before year-end. Russian President Vladimir Putin’s visit to India this week adds fresh uncertainty, with the risk that Prime Minister Narendra Modi’s public embrace of Putin could prompt President Donald Trump to penalize New Delhi for its relationship with Moscow.
Ajay Srivastava, founder of New Delhi-based think tank Global Trade Research Initiative, said the visit by US negotiators next week was more about “diplomatic optics than serious trade diplomacy.” Coming a week after Putin’s high-profile visit, the US is trying to “signal ‘presence,’ not deliver results,” he said.
There’s unlikely to be meaningful advancement of the trade deal next week given the talks are being led by deputy-level officials, Srivastava said. “Decisions on tariff relief or a free trade agreement are made in the Oval Office, not in mid-tier trade missions,” he said.
The US is India’s largest export market and the high levies have hit labor-intensive sectors hard, including textiles, leather, footwear and jewelry.
Trump said last month he would lower duties on Indian products “at some point” and that the two sides were getting “pretty close” to a trade agreement. Teams from the two countries have met multiple times in recent months and officials in New Delhi have expressed cautious optimism that a deal is in sight.
Disclaimer: This report is auto generated from the Bloomberg News Service. ThePrint holds no responsibility for its content.
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