US-India trade agreement is caught in tough position
(MENAFN) With the July 9 deadline set by the Trump administration fast approaching, the much-anticipated interim trade agreement between India and the United States remains uncertain, caught in complex and tough negotiations.
Although the White House Press Secretary suggested the deal was close, and Indian Finance Minister Nirmala Sitharaman expressed optimism about securing "a big, good, beautiful" pact—responding to President Trump’s remarks about opening the Indian market—the talks continue to face significant hurdles.
Major disagreements persist over key issues such as agricultural imports, auto parts, and tariffs on Indian steel.
Indian trade representatives have stayed on in Washington to continue discussions, even as India emphasizes "very big red lines" particularly concerning farm and dairy protections. Meanwhile, the US is pushing for broader access to Indian markets. While the overall mood remains hopeful, the timeframe for reaching an agreement is tightening.
A critical point of contention is the US desire for India to import American corn, which faces resistance in India for several reasons.
Ajay Srivastava, a former Indian trade official now leading a trade-focused think tank in Delhi, notes that the upcoming week will be crucial in deciding whether the two countries settle for a limited "mini-deal" or walk away from negotiations for the time being.
At the heart of the impasse lies agriculture. According to a Washington-based expert on India’s economy, India must safeguard its basic agricultural sector due to economic and political concerns, making US access to this market one of the biggest obstacles to finalizing any initial agreement.
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