US-India trade talks have reached 'plateau': Nirmala Sitharaman
What's the story
India and the United States have reached a "plateau" in their trade negotiations, Finance Minister Nirmala Sitharaman said on Monday. Speaking at an event in Delhi, she said that any further progress would be "very, very difficult" for both nations. "It's been a hard and very vigorously negotiated agreement," she added, noting that negotiations are still ongoing. She also pointed out that the trade balance is in India's favor, with a deficit on Washington's part.
Economic imbalance
Trade balance in India's favor, Sitharaman says
Sitharaman said the US would want to reduce this trade imbalance and correct what it sees as losses over time.
"Negotiation used to be the only platform through which countries could highlight the discrepancies, highlight the lopsidedness and say, would we want to correct this?"
"Tariff was an instrument of negotiation, and tariff had a certain framework within which you will apply it. Today framework is there, tariffs are going," she said.
Trade partnerships
Shift from multilateralism to bilateral agreements
Sitharaman also spoke about the shift from multilateralism to bilateral agreements. She said countries are looking for new trade partners and strengthening relationships through these agreements.
"Countries choose where multilateralism would benefit them... Bilaterals today are catching up far more than even initiating or beginning a multilateral," she said.
Trade example
India-EU trade agreement cited as example
The India-European Union trade agreement was cited by Sitharaman as an example of protecting domestic interests while negotiating trade pacts.
She said India opened 92.5% of its tariff lines and around 97% of tariff value under the agreement, while the EU opened 99% in value terms and possibly 97% of tariff lines.
Greater access to European markets could boost employment in labor-intensive sectors like footwear and textiles, she said.
Global trade
Multilateralism still important, Sitharaman says
Sitharaman concluded by saying that multilateralism is still important, even as countries pursue bilateral agreements.
She said, "Multilateralism is not going to go away, and multilateralism shouldn't go away."
Her remarks came at the Munich Leaders Meeting in Delhi, which serves as a platform for senior decision-makers to discuss cooperation among emerging powers amid geopolitical changes.