Are India-US trade talks nearing ‘last-mile bargaining’ amid strained ties?
US Trade Representative Jamieson Greer’s visit to India this week could help put the ‘final touch’ on a trade deal, analysts say
Analysts say the visit could centre on finalising tariff rates and giving the relationship a political reset after a year of strain over trade, Indian workers and the Strait of Hormuz.
America earlier this year agreed to reduce levies on India to 18 per cent from 50 per cent. However, both sides have been forced to renegotiate after the US Supreme Court struck down Trump’s sweeping tariffs against various countries, prompting Washington to impose a universal 10 per cent duty.
Since then, negotiations have been ongoing regarding a final tariff rate before July 24 – when the 10 per cent duty is set to expire – and Washington’s push to open India’s protected agricultural markets, which employ nearly half of the country’s working population.
“There has been some hard bargaining by both sides and I expect Greer’s visit should put the final touch on the trade deal,” said Vivek Mishra, deputy director of strategic studies at the Observer Research Foundation, adding that finalising the tariff rates appeared to be the goal of the talks.