The long-anticipated trade agreement between India and the United States is on the verge of completion, with only a tiny fraction of negotiations still pending. US Ambassador to India, Sergio Gor, announced that a mere one percent of the deal remains to be ironed out after approximately 18 months of discussions.
Final Stages of Bilateral Agreement
Speaking at the US-India Strategic Partnership Forum Leadership Summit, Ambassador Gor expressed his determination to conclude the pact swiftly, highlighting its mutual benefits. He noted that while most of the agreement is finalized, a few specific items are still under discussion by both sides. "We are in the final steps on this deal. Most of this deal is complete. There's a few items that remain on both sides. It's in the last 1 per cent of that deal," Gor stated.
Addressing questions about the extended negotiation period, Gor put the timeframe into perspective, suggesting that compared to two decades of trading relations, 18 months is a reasonable duration for such a comprehensive agreement. He also alluded to the strong personal rapport between US President Donald Trump and Prime Minister Narendra Modi as a driving force behind the progress.
India's Stance on Competitive Advantage
Echoing the sentiment of nearing completion, India's Commerce and Industry Minister, Piyush Goyal, had previously affirmed that the trade pact was "very close." However, Goyal emphasized India's prerequisite for signing: securing a competitive tariff advantage over rival nations. He clarified that the agreement would only come into force once a framework is established that ensures Indian goods receive more favorable market access compared to competitors.
Goyal explained that the fundamental purpose of a free trade agreement is to provide a comparative edge. He referenced an earlier framework where India had an 18 percent tariff on goods entering the US, while competitors faced 19-20 percent. Currently, all nations face a uniform 10 percent additional levy, which necessitates a new mechanism to restore India's competitive edge for the deal to proceed.
Looking Ahead
With both sides expressing optimism and a clear path forward, the India-US trade deal appears poised for a breakthrough. The finalization of the remaining one percent of negotiations is expected to unlock significant economic opportunities and strengthen the strategic partnership between the two global powers.