India-US Trade Talks Need Political Push for Final Leg

The fine print of a preliminary trade deal between India and the US has mostly been worked out by negotiators from both sides, but the ball is now in the court of the political leadership to break a stalemate, people aware of the parleys told HT, disclosing two of the topmost sticking points that remain.

- Rajeev Jayaswal

NEW DELHI:

According to the people, these issues are: an unequivocal assurance that New Delhi seeks from Washington that all punitive levies will be repealed, and a freer access to India's politically sensitive agriculture sector that the American side has sought.

"The two-day deliberation that started in Washington on Thursday will likely stretch over to next week," one of these people, who has direct knowledge of the talks, told HT.

Both sides are in a sprint to announce a breakthrough, which will be a preliminary deal covering some portion of the trade between two nations, with a larger bilateral trade deal expected to be signed by October.

Once the deal is done, India wants America to withdraw all existing and potential retaliatory tariffs, including the 26% reciprocal tariff—this comprises a 10% baseline tariff imposed from April 5 and an additional 16% country-specific levy set to trigger from July 9.