The United States says a trade agreement with India is in its final phase but is not close enough to be signed soon, as unresolved issues, existing tariffs and a pending U.S. investigation continue to pressure Indian exporters.
U.S. Trade Representative Jamieson Greer made the assessment Thursday, October 1, after meeting Indian Commerce Minister Piyush Goyal at the G20 trade ministers’ meeting in Milwaukee. Greer said negotiators had identified the remaining “sticking points” and were working to resolve them, while suggesting that President Donald Trump and Prime Minister Narendra Modi could speak again soon to review progress. The negotiations follow months of optimistic signals from both governments, including Goyal’s recent claim that the agreement was nearly completed.
However, Washington and New Delhi still differ over market access, agriculture, tariff treatment and the terms needed to keep Indian exports competitive in the U.S. market. Washington has already imposed a 10% tariff linked to goods suspected of being made with forced labor, while a second Section 301 investigation into alleged global overcapacity could lead to additional measures. India also faces the possibility of tariffs as high as 100% over its purchases of Russian oil and gas under a new U.S. law, adding another layer of uncertainty for businesses.
Indian officials reject the suggestion that the country has structural excess manufacturing capacity in the sectors under review. Until the outstanding disputes are settled, exporters may struggle to plan orders and investments despite the negotiators’ insistence that the talks are nearing completion.