India-US Trade Deal: Very important progress has been made in the ongoing trade deal negotiations between India and America and a deal can be made between the two countries soon. According to NDTV report, despite the India-European Union (EU) Free Trade Agreement reaching the final stage at the political level, talks with the US continued.

Government sources rejected speculation that the India-EU agreement was part of a bargaining strategy with the US. Sources say that America was not mentioned even once in the limited meetings of India-EU on the last day. According to the government, the EU agreement was put forward on its own independent timeline and in its own commercial interests, and not as a response to parallel negotiations with the US.

Government has full eye on American market also

The government also clarified that a completely cautious approach has been adopted regarding America also. According to sources, the US market is at least equally important, but in many cases even more so. A source said that even during the crucial phase of India-EU talks, Indian trade negotiators were in constant touch with their American counterparts. Talks are still ongoing and India is optimistic about a positive outcome.

Impact of changes in the global trade system

Sources linked India’s trade strategy to the increasing fragmentation of the global trading system. He said that the MFN based WTO system is currently under pressure, hence countries are now giving priority to bilateral and multilateral agreements with big partners. India’s strategy is aimed at ensuring access to larger markets, stability and predictable rules for exporters and investors, and not at treating one agreement as a substitute for another.

India does not consider EU and US exports as competitors

Government sources stressed that India does not consider exports to the EU and the US as competing goals of each other. The priority of the government is to increase exports in both the markets, which will strengthen employment and investment in the country. Describing EU as the world’s largest import market, sources said that the India-EU agreement is an example of how India wants to move forward with big markets. Although the sources did not disclose about the India-US trade agreement, they said that the talks are ongoing. According to him, the possibility of a compromise in future has increased.

Trying to reassure the industry

The public signal of the government is also for the industry. According to sources, an attempt is being made to convey that the EU agreement is not a geopolitical strategy to get ahead of each other and talks with America are also in the final stages. The government emphasizes that India’s trade policy is being determined not by strategic signals but by concrete business outcomes such as market access, stable regulations and supply chain integration.

Trade talks between India and America have not yet reached any agreement. At present, America has imposed 50 percent tariff on India, out of which 25 percent duty is included on purchasing Russian oil. Meanwhile, US Trade Representative Jamieson Greer said that if India wants exemption from US tariffs, then it will have to address America’s concerns regarding the purchase of crude oil from Russia.

How will the 25% tariff imposed on India be removed?

Indian and US officials have been in talks for several months to reduce the 50 percent tariff imposed by President Donald Trump last year. Despite American pressure, India is buying crude oil from Russia. In an interview with Fox Business, Jamieson Greer said that India has taken steps to reduce the import of Russian oil. However, he also said that due to the concessions in oil supply from Russia, it is difficult to stop imports completely.

India likes relaxation: Jamieson Greer

According to a Bloomberg report, he said, ‘India likes the discount on Russian oil. Despite regular talks with the Indian counterpart, many things still remain unresolved on this front. Meanwhile, India has finalized the Free Trade Agreement (FTA) with the European Union. This is being seen as a response to Trump’s trade deal. Regarding this, Jamieson Greer, close to Trump, said that due to the changing trade policy of America, a free trade deal has been made between India and EU.

Those close to Trump angry at European Union

He said that India is going to get the biggest benefit in the deal with the European Union. India’s reach in the European market will increase. He said that while America is trying to fix some of the problems of globalization, Europe is placing more emphasis on globalization.

America’s reaction has come to light on the historic Free Trade Agreement (FTA) between India and the European Union (EU). Since no final decision has been taken yet regarding the trade deal between India and America, the statement of the Trump administration is being considered important in many ways. American trade official and close to Trump, Jamieson Greer, said that India is going to be the biggest beneficiary of the deal with the EU.

India on top in deal with EU: Jamieson Greer

US Trade Representative Jamieson Greer said, ‘I have seen few details of this deal so far. To be honest, India seems to be benefiting from this. India is getting more access to the European market. Overall, India will remain on top. It is also possible that some immigration rights may also be given in this deal, so that Indian professionals and workers get more opportunities to work in European countries. He also said that due to the changing trade policy of America, a free trade deal has been signed between India and EU.

‘Because of America, Europeans are looking for another market’

In an interview given to American news channel Fox Business, he said, ‘It is important to understand that when America is limiting its market, then trade-dependent blocks like the European Union have to find other options. This is the reason why the European Union is turning towards a big market like India.

Greer criticized the EU, saying that while the US is trying to fix some of the problems of globalization, NATO is pushing for more globalization. He said, ‘It is important to understand that President Trump, giving priority to domestic production, started imposing tariffs on goods coming to our market from other countries. This is why these countries are looking for other markets for their goods. The European Union is so dependent on trade that it needs other markets, so it cannot send all its goods to America.

‘Europe did not put pressure on India regarding Russian oil’

The timing of Jamieson Greer’s statement is very important because a few days ago, US Finance Minister Scott Besant had targeted the European Union for not putting pressure on India regarding Russian oil. He said, it was because of American tariffs that India reduced the purchase of Russian oil because the European country refused to do so. They (EU) wanted to make a big trade deal with India.