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India-US Trade Deal Nears End, but Sticking Points Remain
India and the United States are trying to complete a trade agreement.
The talks are near the end, but the agreement is not ready to sign yet.
Both sides have made a list of difficult issues that still need to be solved.
U.S. officials are also considering new trade measures involving India.
One law gives the U.S. president power to impose very high tariffs on countries that keep buying Russian energy.
India says it wants to protect its energy supply by buying from different sources.
Indian companies are announcing large investments in the United States during the negotiations.
The United States has also criticized some Indian investment rules and reported concerns about corruption.
It has further accused India and other countries of helping hide the Chinese origin of some goods through transshipment.
U.S. Trade Representative Jamieson Greer said India-U.S. negotiations are in their final phase but a signing is not imminent.
Greer said negotiators have identified a range of unresolved issues and are working toward a settlement.
The United States is expected to release findings from a Section 301 investigation into alleged overcapacity and has already imposed a 10% tariff on India over goods linked to forced labor.
A new U.S. law allows President Donald Trump to impose tariffs of up to 100% on countries continuing to buy Russian oil and gas, including India and China.
U.S. reports have raised concerns about India’s investment regulations, corruption risks and alleged participation in a Chinese transshipment network.
- Who
- India and the United States, including Commerce and Industry Minister Piyush Goyal and United States Trade Representative Jamieson Greer, are involved in the negotiations.
- What
- The countries are negotiating a trade deal that Greer said is in its final phase but not ready for imminent signing.
- Where
- The negotiations are taking place between officials in Washington and during discussions connected to the G20 Trade Ministers’ Meeting.
- When
- Greer made the comments on Thursday after meeting Goyal; related reports and measures were issued in recent months, including in August and 2024.
- Why
- The countries are trying to resolve remaining trade issues, while the United States is raising concerns about tariffs, investment barriers, corruption and transshipment.
India’s stated position
U.S. concerns and demands
Trade agreement timing
India’s stated position
India is continuing negotiations and has held discussions through Minister Piyush Goyal and its negotiating team.
U.S. concerns and demands
United States Trade Representative Jamieson Greer said talks are near the end but the deal is not imminent because important sticking points remain.
Energy security and Russian imports
India’s stated position
India’s Ministry of External Affairs said it remains committed to energy security through diversified sourcing and changing market conditions.
U.S. concerns and demands
A U.S. law gives President Donald Trump authority to impose tariffs of up to 100% on countries, including India, that continue buying Russian oil and gas.
Investment and market access
India’s stated position
Indian companies are increasing investment in the United States, including Mesabi Metallics’ announced $18 billion steel project.
U.S. concerns and demands
The United States says Indian approval requirements, economic nationalism and actual or anticipated corruption can discourage foreign investment.
Chinese transshipment
India’s stated position
The article reports India’s inclusion in the White House’s alleged shadow transshipment network but does not state an Indian response to that allegation.
U.S. concerns and demands
The White House report placed India among countries where the risk of illegal transshipment is allegedly embedded within large legitimate trade flows.
Key facts
- Negotiation status
- The talks are in the final phase, but the signing is not considered imminent.
- Unresolved issues
- Greer said the countries have identified a “universe” of sticking points.
- Existing tariff
- The United States has imposed a 10% tariff on India over imports linked to forced labor.
- Potential tariff authority
- The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 allows tariffs of up to 100% on countries continuing to buy Russian oil and gas.
- Indian investment announcement
- Mesabi Metallics announced an $18 billion investment to build an integrated steel company in the United States.
- U.S. investment stock
- U.S. direct investment stock in India reached $58.54 billion in 2024, down 3.37% from 2023.
- Investment concerns
- A U.S. State Department report cited economic nationalism, approval requirements and corruption risks as barriers for U.S. investors in India.
Quotes
Jamieson Greer
United States Trade Representative
“We are continually trying to finish the trade deal with India. I would characterise it as we say in the U.S., we’re in the short strokes. So I think we’re toward the end of it.”
indianexpress.com
“At the same time, I don’t think there’s something imminent, but we truly have identified the universe of items that are sticking points.”
indianexpress.com
Sources
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