India hails progress in US trade talks, but no deal yet

NEW DELHI: India hailed trade talks with the United States on Wednesday as a “key step” towards a deal, but stopped short of announcing a breakthrough in remaining differences.

Indian Commerce Minister Piyush Goyal said two days of talks with visiting US Trade Representative Jamieson Greer were held in a “constructive and forward-looking manner”, in a post on social media.

New Delhi and Washington announced an initial understanding in February that would see the United States drop tariffs from 25 percent to 18 percent, and India cut duties on a range of industrial and agricultural products.

But negotiations have dragged since the US Supreme Court struck down much of President Donald Trump’s sweeping tariff regime.

They then became more complicated when Washington chose to launch a probe into unfair trade practices against several countries including India.

An Indian commerce ministry statement said Goyal and Greer held “multiple rounds” of talks, and that the visit was a “key step in ongoing efforts”.

Both sides have spoken optimistically about the possibility of finalising an interim deal.

Goyal has insisted that “99 percent” of the deal’s first tranche is done.

The US Ambassador to India, Sergio Gor, said negotiators were working on the “last one percent”.

One sticking point, Goyal has noted, is India’s need to ensure that its final tariff rate remains competitive when compared to other regional manufacturing rivals.

An Indian commerce ministry official told AFP that New Delhi has also floated the idea of a clause to allow both nations to revisit the deal’s terms after a fixed period of time.