'Deal brings ties back from tariff tension'

A rapid disengagement from Russian energy is unrealistic, says Nisha Biswal, former US Assistant Secy of State

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ISHA Biswal served as Assistant Secretary of State for South and Central Asian Affairs from 2013 to 2017, playing a key role in shaping the US-India partnership.

She talks to Jayanth Jacob on the emerging India-US trade understanding, the tariff diplomacy under President Trump, and the prospects for durable strategic cooperation between the two countries amid shifting global power equations. Excerpts:

After a fraught phase, what strategic recalculation finally broke the logjam leading President Trump to announce a trade deal?

Most of the negotiations had been completed for some time. There was a feeling that the deal would not be finalised until the two leaders spoke. The phone call on February 2, initiated by President Trump, enabled the two leaders to find wins: India got removal of the 25% energy tariff and a reciprocal rate of 18%, which was better than other Asian peers, without compromising on its agriculture and dairy sectors; The US got removal of Indian tariffs on a cross-section of sectors, a commitment to cut Russian energy imports and commitments to buy US energy, technology and defence products. The timing can perhaps be attributed to the arrival of Ambassador Sergio Gor to New Delhi but also the announcement of an EU-India FTA.

Though the final text of the deal some distance away, does it signal an economic reset in India-US ties, or is it merely a tactical arrangement amid an unpredictable US tariff regime?