India and US resume talks on potential trade agreement
What's the story
India and the United States have resumed discussions on a proposed trade agreement. The move comes after the US imposed heavy tariffs on Indian goods entering its market. The high-level negotiations are being led by Rajesh Agrawal from India's side and Brendan Lynch on behalf of the US. The main objective of these talks is to address trade-related issues arising from the new tariffs.
Delegation
First visit of US trade official since tariff imposition
The US delegation, led by Assistant US Trade Representative for South and Central Asia, Lynch, arrived in India yesterday. This is the first visit of a senior US trade official after the imposition of a 25% tariff and an additional 25% penalty on Indian goods entering America. The tariffs were imposed in retaliation to India's purchase of Russian crude oil.
Tariff dispute
India condemned US's steep tariff
India has condemned the steep 50% tariff imposed by the US as "unfair and unreasonable." The trade talks were initially scheduled to continue in August but were postponed after the US imposed high import duties on Indian goods. Despite this setback, both countries have been holding weekly virtual discussions to keep the dialogue going.
Future discussions
Trade talks not considered as 6th round of negotiations
The meeting between Lynch and Indian officials is not considered as the sixth round of negotiations but rather a precursor to it. This high-level trade dialogue is the first formal and face-to-face bilateral engagement since the fifth round in Washington from July 14-18.
Optimism returns
Positive sentiment around trade talks
The sentiment around the trade talks has turned positive in recent weeks. US President Donald Trump and Prime Minister Narendra Modi have exchanged positive statements, with Trump calling Modi a "great Prime Minister." White House Trade Advisor Peter Navarro said he believes India's problems will be sorted out once they stop buying Russian oil.