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Framework Trade Deal Could Materialize as US Team Heads to India

by admin477351

The Trump administration is preparing to send a high-level negotiating team to India next week, continuing efforts to establish a comprehensive trade agreement between the two economic powers. Deputy US Trade Representative Rick Switzer will lead the American delegation in what both governments hope will be productive discussions toward reducing trade barriers and tariffs.

According to a US official who requested anonymity, the travel plans have been finalized, though detailed information about the visit’s specific goals and schedule remains confidential. The upcoming negotiations are of paramount importance to India, which has been struggling with the economic consequences of 50% import duties on goods shipped to American markets.

The Modi administration has been vigorously pursuing an initial trade deal with Washington, viewing tariff relief as essential for protecting key sectors of India’s economy that have been severely impacted by these duties. Commerce Secretary Rajesh Agrawal recently conveyed strong optimism about reaching a resolution within the current calendar year, stressing at an industry event that the primary objective is establishing a framework trade deal that effectively addresses reciprocal tariff issues.

The negotiating approach involves implementing the agreement in multiple stages, with the first phase specifically targeting the removal or reduction of retaliatory tariffs President Trump imposed on Indian products. These duties include additional charges related to India’s past energy purchases from Russia. However, the relationship between Trump and Modi has improved considerably, particularly after India curtailed its Russian oil imports, creating favorable conditions for potential tariff relief and enhanced bilateral cooperation.

President Trump stated last month that he would lower duties on Indian goods at some future point and indicated both sides were approaching consensus on trade matters. Multiple rounds of negotiations have already been conducted between American and Indian teams, with officials in New Delhi expressing cautious but genuine hope for a breakthrough. The stakes are exceptionally high because the US is India’s largest export market, and existing tariffs have severely damaged labor-intensive sectors such as textiles, leather, footwear, and jewelry manufacturing.

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