India-US Trade Deal Delay: S Jaishankar Explains What's Holding Up the Agreement

The proposed India-US trade deal is taking longer to finalise as both sides continue to work through differences over tariffs, market access and changes in American trade policy, External Affairs Minister S Jaishankar has said. Speaking at an Asia Society event in New York on the sidelines of the 81st United Nations General Assembly, Jaishankar said the negotiations have progressed substantially, but the complexity of the issues involved has made the process more difficult.

He pointed to differences between the two economies as one of the factors that need to be considered during the negotiations. India has a large number of small farmers, manufacturers and businesses whose interests need to be taken into account while deciding market-access commitments. Changes in US tariff policy have also added uncertainty to the talks. Washington's evolving trade measures have created additional issues that need to be addressed before the agreement can be concluded.

Jaishankar also referred to the ongoing US Section 301 process, which can lead to investigations and possible trade measures. The issue has become part of the broader discussions between the two countries as they seek to settle the terms of the proposed agreement. The tariff structure is particularly important for Indian exporters seeking greater access to the US market. New Delhi has been seeking competitive tariff treatment for Indian products so that exporters are not placed at a disadvantage compared with suppliers from other countries.

Commerce and Industry Minister Piyush Goyal is also scheduled to visit the United States from September 29 to October 5. During his visit, he is expected to hold discussions with US Trade Representative Jamieson Greer on the bilateral trade agreement. India and the US had announced a framework for the first phase of the trade agreement earlier this year. The proposed arrangement is aimed at expanding market access and strengthening bilateral trade while protecting sensitive sectors of the Indian economy. The latest comments from Jaishankar indicate that negotiations remain active, although there is no confirmed date for the finalisation of the agreement. Both sides are continuing discussions on the outstanding trade and tariff issues before moving toward a final arrangement.

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