India and the United States are very close to finalizing a key trade deal, with around 99% of the issues sorted out, according to Indian commerce minister Piyush Goyal. A US delegation led by Assistant Trade Representative Brendan Lynch is currently in New Delhi for discussions aimed at sealing the deal.
The two countries began talks on this agreement back in February. However, progress hit a snag after the US Supreme Court struck down some of President Trump’s tariff measures. Following that, the Trump administration opened investigations into trade practices globally, including those involving India, and slapped a blanket 10% tariff on various goods.
Goyal mentioned that negotiators are now focusing on how to adjust the trade deal according to recent legal updates in the US. He expressed optimism about signing the first part of the agreement soon, stating, “We are refining the details, discussing minor elements like commas and full stops.”
Last week, US Ambassador Sergio Gor indicated that they expect to finalize the interim deal in the coming weeks. Both nations aim to ramp up bilateral trade to an impressive $500 billion by 2030. This has involved a series of negotiation rounds since March primarily addressing market access and tariff concerns.
India is committed to protecting its sensitive dairy and agricultural sectors while also opening a door to the vast $30 trillion US market for exporters.
Recent statistics reveal that trade volume between the two countries was around $150 billion in 2021. If both sides meet their goal, this could mean exponential growth in trade relations, potentially benefiting various sectors in both economies.
Experts have pointed out that increasing trade could lead to more jobs and economic growth in both nations. A robust trade agreement would not only be a significant step forward for US-India relations but also set a precedent for future international trade deals.
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