India-US Trade Deal Could Put Ties on Better Track, Says Jaishankar
External Affairs Minister S Jaishankar said a near-final India-US trade agreement could help improve bilateral ties, while noting that changing US tariff policies have complicated the negotiations.
External Affairs Minister S Jaishankar said a near-final trade agreement between India and the United States could help move bilateral relations onto a better track, even as changing US tariff policies have complicated the final stages of negotiations.
Speaking at an Asia Society event in New York, Jaishankar said the two countries had reached a stage where there was broadly an understanding on the trade agreement. However, he noted that developments on the US side, including the new Section 301 process, had raised questions about when the deal should be formally concluded.
Jaishankar said the negotiations had proved more complicated than initially expected, pointing to differences in the structure of the two economies. He highlighted India’s large number of small agricultural producers and factories, saying the nature of production and society made detailed negotiations necessary.
According to Jaishankar, the Section 301 process is still unfolding, leaving India to assess when to close an agreement that is already at an advanced stage. He also acknowledged that the prolonged negotiations had created difficulties in the bilateral relationship over the past year.
India and the US had announced in February that they had finalised a framework for the first phase of a bilateral trade agreement. Subsequent changes in US tariff policy led to further negotiations. Commerce and Industry Minister Piyush Goyal recently said the pact was “done and dusted” and would move ahead once India receives a competitive position in the US market.
Jaishankar also pointed to broader issues affecting India-US ties, including immigration and public opinion. He said foreign policy is increasingly influenced by social media and domestic political considerations, particularly in democratic countries.
He added that India hopes the relationship will continue on an upward trajectory, while progress on unresolved issues remains important to strengthening bilateral ties.
