High Stakes in India-US Trade Talks: What You Need to Know

Before American negotiator Brendan Lynch’s visit to India, White House trade advisor Peter Navarro once again spoke out against India’s trade policies on Monday.

Speaking to CNBC International, Navarro said, “Indian refiners were working closely with Russian refiners right after the invasion. It’s crazy, because they profit from us through unfair trade while many workers suffer. They use that money to buy Russian oil, and Russia uses it to buy weapons.” He also added that India has very high tariffs, making trade with the US difficult.

Trade Discussion Between India-US

Brendan Lynch, the US Assistant Trade Representative for South and Central Asia, is arriving in India on Monday night, September 15. He will meet India’s chief trade negotiator, Rajesh Agrawal, to discuss ongoing trade issues. Agrawal confirmed that Lynch’s visit is for one day and said both sides want to “fast-track” the talks, though he did not provide further details, according to Reuters.

The US team had originally planned to visit India between August 25 and 29, but the trip was canceled after tensions rose over US tariffs on Indian products. These tariffs were imposed as a “penalty” for India buying Russian oil, which Washington said was indirectly funding Russia’s war in Ukraine. The first set of 25 percent tariffs came into effect in early August, followed by another 25 percent at the end of August.

Will Both Countries Agree to a Trade Agreement?

India and the US have been negotiating an interim trade deal since March-April. The US had said one reason for the “punitive” tariffs was that the talks were taking too long. India, however, has concerns about US demands to open its domestic agricultural and dairy markets. Prime Minister Narendra Modi has emphasized that farmers’ interests will be protected. These issues are expected to be a key focus during the talks.

The original goal was to finalize a trade agreement by September. Now, both sides aim to complete the first stage of the deal by October-November. India’s exports to the US fell to $6.86 billion in August from $8.01 billion in July, though the full impact of the higher tariffs will be clearer next month.

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