India and US Trade Deal Faces Delay: Uncertain Schedule Raises Questions

Tariff talk:Negotiations on a new trade deal are ongoing between India and the United States. Both countries have made several proposals. India has proposed purchasing corn from the United States, which will be used in ethanol production. India is also considering purchasing more oil from the United States.

India has demanded that the US remove the 25% additional tariff imposed on India for purchasing oil from Russia. The US claims these tariffs were imposed to prevent Russia from funding the Ukraine war.

India's 'Red Line' on Agriculture and GM Products

An official stated that the US had already been pressuring India to purchase American soybeans and corn. India flatly refused, as the country's government wants to protect the domestic agricultural sector and farmers. Furthermore, it also wants to ensure that GM (genetically modified) products are not included in food.

Next Round of Talks

The talks between the two countries are moving in the right direction. According to officials, the first part of the agreement is targeted to be completed by autumn, but the date and location of the next round are not yet decided. This conversation will be completed in stages.

Previous Rounds and Delegation Meetings

Commerce and Industry Minister Piyush Goyal visited the US from September 22-24 and met with US Trade Representative Jamieson Greer. He also held talks with US Ambassador-designate Sergio Gor. This meeting occurred at a time when an additional 25% tariff was imposed on India.

After five rounds of negotiations, the sixth round was scheduled for August, but it was postponed. In August, India's exports to the US were $6.86 billion, and imports from the US were $3.6 billion.