India-US trade deal soon? US chief negotiator to initiate talks in Delhi
American Chief Negotiator Brendan Lynch is scheduled to arrive in India on Monday, with formal discussions expected to begin on Tuesday.
New Delhi: The wait is finally over as trade talks between India and the United States are set to enter a new phase. American Chief Negotiator Brendan Lynch is scheduled to arrive in India on Monday, with formal discussions expected to begin on Tuesday. Indian Chief Negotiator Rajesh Agarwal confirmed that the two sides will engage in dialogue aimed at strengthening bilateral trade ties.
This comes after months of brewing tensions between the two countries, after the US had imposed sky-high tariffs on India. Initially Trump had imposed 25 per cent tariffs on India on August. However, it imposed an additional 25 per cent tariffs for the purchase of Russian oil by the Indian subcontinent. Originally, the US visit was scheduled between August 25 and 29, but the rising tensions between the two nations created a halt.
Why were India-US ties strained
The two nations have been trying to reach a conclusion for the past few months. Although, India has repeatedly raised its objections over Washington's demands to open up the dairy and agricultural sectors, directing to the farmer's interests. India highlighted its diplomatic interests, pointing out that the Russian oil purchase is initiated for its gains, and that it is not bound to adhere to any foreign demands.
The Trump administration had consistently imposed reciprocal tariffs, extended duties on several nations, with which the US runs a trade deficit. Since, the start of his administration, Trump had reiterated the fact that the US will match duties imposed by other nations to ensure "free trade".
What changed
Lately, the dynamics between India and the US have changed. As, Trump is of the view that the Russia-Ukraine war is more of a "Europe problem". While his officials have varied opinions, Trump spared India a mention as he urged the European Union (EU) to put tariffs on China too. The change of behavior comes after the two world leaders, Modi and Trump shared a friendly exchange on social media, a few days ago.