India-US trade talks: India and the US Wednesday wrapped up two days of negotiations over a bilateral trade deal and Delhi said there had been “a comprehensive review” of core elements including “enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors”.
The US trade delegation was led by United States Trade Representative (USTR) Jamieson Greer. The negotiations took place a month before Washington is expected to come out with a new tariffs architecture under Section 301 of the US Trade Act to replace reciprocal tariffs deemed illegal by the US Supreme Court in February this year.
An industry source said a 7-member US legislative delegation, simultaneously visiting Maharashtra, has begun exploring tech export opportunities in India. The source said that India and the US have, in principle, agreed to the deal and expect the agreement to be signed in the next 15 days.
The Ministry of Commerce and Industry said “the two sides expressed confidence that ongoing negotiations will further deepen economic ties” and strengthen the India-US Comprehensive Global Strategic Partnership.
“Ambassador Greer held multiple rounds of discussions with the Union Minister of Commerce and Industry, Piyush Goyal. The two leaders conducted a comprehensive review of core bilateral trade agreement (BTA) elements, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors,” the Ministry said.
Discussions focused on pathways to conclude an interim agreement as an important milestone toward a comprehensive BTA, and both sides reaffirmed their commitment to an agreement that is balanced and commercially meaningful, the Ministry said.
The US delegation, led by Greer, also met Union Finance Minister Nirmala Sitharaman.
ExplainedWhat’s taking time
Bilateral trade deal negotiations have been slow due to differences over high tariffs, agricultural market access, e-commerce regulations and India’s pushback against US pressure on its energy and defence ties with Russia. The two sides are trying to secure a working deal before next month’s US tariff deadline.
The Ministry of Finance, in a social media post, said both sides exchanged views on strengthening bilateral trade and economic cooperation, with a focus on new opportunities for growth and deeper commercial engagement.
Meanwhile, the USTR said that India has a long history of agriculture and manufacturing, and they are moving forward in technology.
“They want to move forward in AI. They want to cooperate and collaborate with the United States on the technologies of the future and trade of the future. And that’s some of the exciting opportunities that we’ll have between the United States and India,” he said.
Greer said President Donald Trump and Prime Minister Narendra Modi have an “amazing” relationship that they have nurtured over many years.
“Just last week, they met at the G7 in Evian, France, and I was there, and they agreed to take the relationship to the next level. This includes the trade deal that we’re working on, but it includes every aspect of the relationship, and we expect the relationship to continue developing and only going to a higher and higher level with every passing week,” he said.
Meanwhile, Ajay Srivastava, former trade officer and founder of think tank GTRI, cautioned against “a one-way market-access agreement rather than a balanced trade pact”.
“Even a signed agreement would offer no protection against future US trade actions, as Washington has repeatedly launched Section 301 investigations and imposed trade restrictions on countries with which it already has trade agreements. In these circumstances, India realises that delaying, or even abandoning, a rushed BTA may be the more prudent course than locking India into obligations whose costs could far exceed any temporary tariff relief offered by Washington,” Srivastava said.
On June 18, the US launched an investigation under Section 301 against Germany, months after signing a trade deal. The US trade investigation said that evidence indicated that Germany was implementing unfair pricing policies and practices about innovative pharmaceutical products.
“Evidence further suggests that reduced revenue associated with these acts, policies, and practices contributes to, among other things, reduced investment for R&D that supports the development of innovative pharmaceuticals. As a result, the United States pays a disproportionate share of global R&D costs for innovative pharmaceuticals,” a USTR report said.
The US had also launched a separate Section 301 investigation on Vietnam last month, saying Vietnam had demonstrated a persistent failure to resolve long-standing concerns about IP protection and enforcement. Vietnam was among the first countries to sign an agreement with the US. – With PTI
Union Finance Minister Nirmala Sitharaman with United States Trade Representative Jamieson Greer in New Delhi. (Image source: @FinMinIndia) 
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