US and India conclude latest trade talks with no clarity over deal

WASHINGTON/NEW DELHI – The US and India concluded trade talks on June 24, though neither side said whether they had narrowed the differences holding up an interim agreement.

US Trade Representative Jamieson Greer travelled to India for two-day talks that wrapped up on June 24 to advance trade negotiations that have dragged on for months. The visit came days after US President Donald Trump met Indian Prime Minister Narendra Modi on the sidelines of the Group of Seven summit in France and said the two sides were “very close” to an agreement.

“We reviewed progress of the ongoing India-US trade discussions and explored avenues to further deepen our economic partnership,” India’s Commerce and Industry Minister Piyush Goyal said in post on social media platform X on June 24, following talks with Greer.

In a separate statement, India’s trade ministry said both sides are seeking a “balanced” agreement that delivers “tangible benefits for businesses, farmers, workers and consumers in both countries”. The officials discussed enhanced market access, digital trade, supply chain resilience and reduction of non-tariff barriers in the latest round of talks, according to the statement.

The negotiations underscore the growing importance of the economic relationship between the world’s largest and most populous democracies. The US is India’s second-largest trading partner and the biggest export market.

A deal would help India shield its exporters from the threat of higher US tariffs and support Modi’s push to turn the country into a global manufacturing hub. In turn, it would give Washington greater access to one of the world’s fastest-growing large markets and advance its broader strategy of diversifying supply chains away from China.

India’s exports to the US climbed to US$87.3 billion (S$113 billion) in the year-ended March, while imports increased 17.2 per cent to US$53.48 billion.

India and the US had announced a trade framework in February that reduced import duties on Indian goods to 18 per cent from 50 per cent. Days later, however, the US Supreme Court struck down Trump’s sweeping global tariff regime, injecting fresh uncertainty into when the pact would be implemented.

The Office of the US Trade Representative subsequently launched Section 301 investigations into several countries, including India, over concerns ranging from forced labour to excess production capacity. New Delhi wants Washington to terminate the investigations and address the issue within the framework of ongoing trade negotiations and not through unilateral measures.

The “negotiations remain stuck because the foundation of the original bargain as defined in India-US Joint Statement dated Feb 7 has collapsed,” according to Ajay Srivastava, founder of the New Delhi-based Global Trade Research Initiative. “Washington now is effectively asking India to negotiate on the basis of benefits it can no longer legally deliver.”

Indian officials have consistently maintained that New Delhi wants to secure a competitive edge over rival nations before signing a pact. India has also sought assurances from Washington that it will not be subjected to Section 301 investigations once a trade agreement is signed. BLOOMBERG