Trump Modi trade : Rick Switzer, Deputy US Ambassador for Trade, will visit India on December 10 and 11 to engage in high-level consultations with Indian officials. These discussions are an important aspect of the continuing efforts to conclude a bilateral trade agreement (BTA). This visit comes at a time when India and the United States are striving to enhance ties and address recent trade disputes.
According to Ministry of External Affairs spokesperson Randhir Jaiswal, the visit is mostly for familiarization purposes, as acknowledged during a media briefing on Monday.
“Ambassador Rick Switzer will be meeting with the highest ranking officials in the Indian government to further negotiations on trade,” Jaiswal informed the press. Both countries have been aggressively negotiating a comprehensive trade deal that will include a wide range of sectors, with the goal of considerably increasing bilateral commerce.
Trump Modi trade : Positive for a fair and balanced transaction
India and the United States have been working closely to finalize a fair and balanced trade agreement, with both governments underlining the necessity of a deal that benefits both parties. Several rounds of negotiations have already taken place, and during the FICCI Annual General Meeting on November 28, Commerce Secretary Sunil Agarwal expressed confidence that both countries will reach an agreement before the end of the year.
“We are hopeful that we can finalize a solution within this calendar year,” Agarwal clarified. However, the schedule for completing the first part of the deal had to be revised due to recent changes in US trade policies, including the imposition of tariffs on Indian exports.
Challenges amidst trade tensions
The path to completing the Bilateral Trade Agreement has not been altogether smooth. Former President Donald Trump’s tariff initiatives have been a big stumbling block. These tariffs were initially placed at 25% in August 2021, with another 25% hike shortly thereafter targeting Indian imports, citing problems such as India’s continued purchase of Russian oil. This action was part of a broader set of reciprocal tariff actions in response to trade deficits with nations such as India.
Despite these obstacles, both governments have kept the communication alive, holding multiple rounds of negotiations. Despite the delays, India is hopeful that the first tranche of the agreement will be finalized within the next several months. The proposed Bilateral Trade Agreement (BTA) seeks to more than double the two countries’ current trade volume, from USD 191 billion to an ambitious USD 500 billion by 2030.
This accord was first discussed during Prime Minister Narendra Modi’s visit to Washington earlier this year, and both sides are keen to finalize it.
India has actively pursued similar agreements with a number of global partners. To far, the country has signed 14 Free Trade Agreements (FTAs) and six Preferential Trade Agreements (PTAs), with negotiations for FTAs with numerous other significant international actors, including the European Union, still underway.
