US trade negotiators have resumed virtual talks for the trade agreement with their Indian counterparts after the Christmas holidays in Washington, and a timeline for the next step is under discussion, a senior government official said on Wednesday.
“We remain engaged. After the holidays, chief negotiators have begun to engage virtually, but we cannot set a deadline for when the deal will be signed. We are negotiating,” the official said.
The timing of the trade deal talks with the US assumes significance as American importers typically place bulk summer orders in January, and Indian exporters are missing out due to the steep 50 per cent tariffs that could have a long-term impact.
The absence of the deal going forward could also risk more tariffs on Indian products, as US President Donald Trump has announced 25 per cent tariffs on countries having commercial ties with Iran. Trump has also given a go-ahead to the ‘Russia sanctions bill’ that seeks to impose 500 per cent tariffs on countries importing Russian oil.
However, the anticipation of a thaw between India-US trade ties has gathered pace after US Ambassador Sergio Gor on Monday invited India to the US-led strategic critical minerals and AI supply chain initiative, Pax Silica, a month after leaving India out.
External Affairs Minister S Jaishankar and US Secretary of State and National Security Advisor Marco Rubio also spoke over the phone on Tuesday and discussed bilateral trade negotiations, critical minerals and a possible meeting next month.
As India has stepped up US imports of oil and LPG, and has opened the nuclear sector, Indian exporters are hoping for the rollback of additional US tariffs under the first phase of the deal.
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During his call with Jaishankar, Rubio congratulated India on enacting the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill and expressed interest in capitalising on this important development to enhance US-India civil nuclear cooperation, US State Department’s Principal Deputy Spokesperson Tommy Pigott said.
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